Arabian Drilling expects Q1 2025 revenue to match Q4 2024 levels

Logo of Arabian Drilling Co.

Arabian Drilling Co. expected strong financial performance to persist in Q1 2025, reflecting its operating efficiency gained in 2024.

In a statement commenting on the financial results, the company said Q1 2025 revenue is expected to be in line with Q4 2024, with a projected 5% increase. Its outlook remains cautious, given ongoing market uncertainties.

Considering the prevailing instability in the oil and gas sector, coupled with current geopolitical and economic factors that could impact operations in this sector, the company's management decided to present its future forecasts on a quarterly basis rather than an annual basis. This approach allows the company to provide more realistic market forecasts, which supports a fair valuation, the statement added.

Arabian Drilling identified its strategic priorities to drive growth and achieve its mission and core values. These priorities include increasing fleet utilization—enhancing fleet efficiency in the onshore and offshore sectors, both locally and internationally, to maximize the utilization of operational assets.

This is in addition to supporting the energy transition in the Kingdom, as the company will continue to support Saudi Arabia’s energy transformation plans by providing advanced solutions, particularly in the unconventional gas exploration sector, in line with national sustainability goals.

Moreover, the strategic priorities encompass global expansion through the company’s alliance with Shelf Drilling, as it is expanding its operations into international markets, capitalizing on the growing demand for drilling services with high operational efficiency and competitive costs.

Regarding dividend distributions, Arabian Drilling indicated that it would continue to evaluate its dividend policy on a semi-annual basis to maintain a balance between generating shareholder value and supporting investments for sustainable long-term growth.

According to data available on Argaam, Arabian Drilling’s profits fell by 47% to SAR 321.4 million by the end of 2024, compared to SAR 604.6 million in 2023. Q4 profit amounted to SAR 70.1 million.