Arabian Drilling Company (2381) Q3 2026 earnings summary

Executive summary

• 2026 was characterized as a transition year; Q3 marked a recovery, with stronger margins, a return to net profitability and record backlog visibility into 2027.

• Efficiency and cost optimization helped protect nine-month margins through lower activity; focus is shifting to mobilizing contracted rigs and executing the backlog.

Financial highlights

• Q3 revenue rose 6.0% QoQ to SAR 810.7m; EBITDA increased 27.5% to SAR 319.5m, and operational profit was SAR 82.2m.

• Q3 net profit was SAR 31.4m versus a SAR 31.5m net loss in Q2; EPS was SAR 0.35 versus negative SAR 0.35.

• 9M revenue was SAR 2,397.0m, down SAR 212m YoY; EBITDA was SAR 859.1m, down 12.0%, and net profit was SAR 6.9m versus SAR 73.3m.

• 9M net cash from operating activities increased 10% YoY to SAR 626m despite lower EBITDA; cash flow before working-capital changes was SAR 847.5m.

Outlook and guidance

• Q4 revenue is expected to rise ~8%-10% QoQ, driven by gas LSTK and KJO Dorra starts; utilization is expected near 90%, with offshore rigs at 100%.

• All eight new gas LSTK rigs are expected to start by year-end; one Dorra rig starts in late November, two by end-Q1 2027 and the fourth in Q2 2027.

• 2027 activity outlook is positive, supported by record backlog and contracted deployment; quarterly guidance continues while regional conditions remain unresolved.

• 2026 CapEx guidance rose to SAR 750m-SAR 800m from ~SAR 700m, mainly for accelerated rig reactivation and onboarding, with spending expected mainly in Q4.