Arabian Drilling reported first-half 2026 revenue of SAR1.59 billion ($423 million), down 10.6 per cent year on year due to offshore rig suspensions.
Second-quarter revenue fell seven per cent quarter on quarter to SAR765 million, although the decline was narrower than the company's previous guidance of up to 12 per cent, supported by continued performance in its land drilling segment.
The land segment's second-quarter revenue increased 8.2 per cent quarter on quarter, including an SAR18 million contribution from operations in other Gulf Cooperation Council markets.
Earnings before interest, taxes, depreciation and amortisation declined 21 per cent year on year to SAR540 million in the first half, while the margin remained at 34 per cent following cost efficiency measures.
As of June 30, Arabian Drilling had an order backlog of SAR11.83 billion, supported by long contract durations across its fleet. Three previously suspended offshore rigs returned to service on August 1, while the remaining suspended units are expected to resume operations by the end of the year.
“Through timely execution of our company-wide cost optimization program, we were able to mitigate a meaningful portion of the impact,” said Chief Financial Officer Farid Mustafayev.
Arabian Drilling expects third-quarter revenue to increase by four to six per cent quarter on quarter as offshore activity resumes. The company expects the full financial benefit of rig reactivations to be realised in the fourth quarter, while maintaining its full-year capital expenditure guidance.
