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Arabian Drilling Company (2381) investor relations material
Arabian Drilling Company Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
FY 2025 revenue was SAR 3.4 billion, down 5.1% year-on-year due to reduced offshore and land activity, partially offset by strong unconventional operations.
Q4 2025 revenue was SAR 824 million, down 1.3% sequentially, in line with guidance.
Backlog reached a record SAR 12.4 billion, up 20% year-on-year, supporting future revenue visibility.
First international contract commenced, marking a milestone in geographic expansion.
Utilization improved to 75%, with 45 active rigs at year-end; offshore utilization expected to reach 100% in early Q2 2026.
Financial highlights
FY 2025 EBITDA was SAR 1.24 billion (36.1% margin), down 17.8% year-on-year; adjusted net income fell 90.8% to SAR 39 million.
FY 2025 net loss was SAR 75 million, compared to a profit of SAR 321 million in FY 2024.
FY 2025 CapEx was SAR 746 million, down 61% year-on-year; Q4 CapEx was SAR 162 million, mainly for rig reactivation.
Year-end cash position was SAR 595.3 million, up SAR 14 million from 2024.
Net debt stable at SAR 2.4 billion, with net debt to EBITDA ratio at 2x.
Outlook and guidance
Revenue expected to improve slightly in Q1 2026, with further gains from Q2 as more rigs return to operation.
Offshore utilization projected to reach 100% in early Q2 2026; total utilization to rise above 80% by end of Q1.
CapEx guidance for 2026 is SAR 750 million, with SAR 150 million allocated to rig reactivation.
Margins anticipated to improve as reactivated rigs reach full operational impact in H1 2026.
Management confident in renewing 2026 expiring contracts and expects majority of idle rigs to return to service.
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