Saudi Arabia · Delayed Price · Currency is SAR Arabian Drilling Company Earnings Call Transcripts
Fiscal Year 2025
-
Revenue and EBITDA declined in 2025 due to lower offshore and land activity, but backlog hit a record SAR 12.4 billion. Offshore utilization is set to reach 100% in Q2 2026, with margin recovery expected as more rigs return to service.
-
Revenue declined 5.8% year-over-year to SAR 2.6 billion, with EBITDA margin holding at 35.1% despite lower rig utilization. Backlog rose 6.8% to nearly SAR 11 billion, and five rigs are set for reactivation in Q1 2026, supporting a projected utilization recovery and margin improvement.
-
H1 2025 saw revenue and EBITDA declines due to rig suspensions, with land segment growth offsetting some losses. SAR 2.4 billion in new backlog and the first international contract were secured, but dividend payments are paused for 2025 as market conditions remain challenging.
-
Q1 2025 saw revenue and net income growth, strong EBITDA margins, and major contract wins, but management expects a 10% revenue dip in Q2 and lower margins due to market normalization and rig suspensions. CapEx guidance was reduced, with activity expected to rebound in 2026.
Fiscal Year 2024
-
Record revenue and EBITDA were achieved in 2024, with strong cash flow and a robust backlog despite market uncertainty. The company expanded its fleet, maintained margins, and is focusing on redeploying suspended rigs and international growth, with 2025 guidance shifting to a quarterly basis.
-
Q3 2024 saw resilient EBITDA margins despite offshore rig suspensions, with year-on-year revenue and EBITDA growth driven by unconventional land rig deployment. CapEx remained high, leverage increased, and the outlook is strong for unconventional rigs, while offshore and conventional face short-term challenges.
-
H1 2024 saw strong revenue and EBITDA growth year-on-year, despite offshore rig suspensions impacting utilization and segment mix. CapEx surged for unconventional rig expansion, with full deployment of 13 rigs expected by year-end. Margins are forecast to contract but remain healthy.