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Arabian Drilling (2381) investor relations material

Arabian Drilling Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary31 Jul, 2025

Executive summary

  • H1 2025 revenue declined 6.9% year-over-year to SAR 1.77B, with EBITDA down 13.7% and net income dropping 50.3% to SAR 83M, reflecting rig suspensions and market headwinds.

  • Q2 2025 revenue was SAR 862M, down 5–8% year-over-year; net profit for Q2 was SAR 7–7.5M, a sharp decline from Q2 2024.

  • Largest backlog intake since Q3 2023, with SAR 2.4B added in Q2 and the first international contract signed, valued at SAR 75M.

  • Utilization rate at 78.7% with 48 active rigs out of 61, impacted by further rig suspensions.

  • Ongoing cost reduction initiatives, including SG&A downsizing and efficient cash management, support liquidity and debt obligations.

Financial highlights

  • H1 2025 revenue drop limited by SAR 330M unconventional land rig contribution, offsetting SAR 460M impact from suspensions and contract terminations.

  • EBITDA margin for H1 2025 at 38.5%, down 3 percentage points year-over-year; Q2 EBITDA margin at 35.1%.

  • Operating cash flow for H1 2025 was SAR 480–653M, down 16% year-over-year.

  • Net debt increased 9.9% year-over-year to SAR 2.66B, with net debt/TTM EBITDA at 1.9x.

  • Cash on hand at Q2 2025 was SAR 494M; SAR 120M dividends paid in Q2 for H2 2024.

Outlook and guidance

  • Q3 2025 revenue projected to decline up to 10% from Q2 due to continued rig suspensions.

  • Dividend payments paused for 2025 to preserve cash amid lower utilization; focus shifts to reinvestment and international expansion.

  • CapEx guidance trimmed to SAR 800M–850M for 2025, down from previous SAR 1B plan, supporting improved free cash flow.

  • Management anticipates market pickup in 2026 and is recalibrating cost structure to adapt to current headwinds.

  • Continued focus on SG&A cost reduction and caution advised for upcoming quarters.

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Frequently asked questions

Arabian Drilling Company provides comprehensive onshore and offshore drilling services in the oil and gas sector. Operating a fleet of 45 rigs, the company supports a range of drilling activities, including well intervention and testing, leveraging advanced equipment capable of handling various depths and conditions. As a joint venture, Arabian Drilling is primarily owned by Industrialization & Energy Services Company (TAQA) and Schlumberger. It serves major energy clients in Saudi Arabia and plays a key role in the region's energy exploration and production activities. The company is headquartered in Al Khobar, Saudi Arabia, and its shares are listed on the Tadawul.

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