Saudi Arabia · Delayed Price · Currency is SAR Arabian Drilling Company Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw stable revenue, improved EBITDA, and a return to positive net income, despite year-over-year declines due to lower rig move activity and land utilization. Backlog hit a record SAR 12.5 billion, while cost optimization and refinancing initiatives are underway.
Fiscal Year 2025
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Revenue for 2025 declined 5.1% to SAR 3.4 billion, with EBITDA down 17.8% and adjusted net income falling sharply. Backlog hit a record SAR 12.4 billion, and offshore utilization is set to reach 100% in Q2 2026. No dividends will be paid for 2025 to support expansion.
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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.
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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.
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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
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Record revenue and EBITDA were achieved in 2024, with strong cash flow and a healthy backlog. The company expanded its fleet, maintained margins, and formed a strategic alliance for international growth, while providing cautious quarterly guidance for 2025 amid market uncertainty.
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Q3 2024 saw resilient EBITDA margins despite offshore rig suspensions, with strong year-to-date revenue and EBITDA growth driven by unconventional land rig deployment. CapEx remains high, leverage has increased, and full-year revenue and CapEx are expected at the low end of guidance. Offshore and unconventional markets show diverging outlooks.
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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.