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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.
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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