Arab Drilling contracts over 40% of revenue
Arab Drilling Company, the largest drilling company in Saudi Arabia, has seen a significant increase in the value of its contracts during the third quarter, reaching 7 billion SAR. This contributed to a 50% rise in its order backlog, which now totals approximately 18 billion SAR compared to the second quarter. These contracts account for 41% of the company's projected revenue for 2025. The impact of two of these contracts is expected to be realized in the fourth quarter, while the third contract's effects are anticipated to begin in the third quarter. This development enhances the likelihood of the company returning to profitability after incurring a loss of 31.5 million SAR in the second quarter, due to the suspension of some offshore rigs amid regional tensions. The new contracts are expected to partly improve profits in the third quarter. The company also achieved a 24% year-on-year increase in revenues during the third quarter, supporting prospects for resuming cash dividends that have been halted since 2025, with ongoing capital expenditures approaching the levels seen in 2025.
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