Arabian Drilling CEO: Rig suspension impact to linger until Q4, profit recovery seen in Q2 2026

Ghassan Mirdad, CEO of Arabian Drilling Co.

Arabian Drilling Co.'s (ADC) CEO Ghassan Mirdad said the impact of suspending three rigs will continue until this year’s fourth quarter, but the company plans to focus on restoring performance and profitability starting in Q1 2026.

Mirdad told Argaam that ADC’s Q4 2025 revenue is likely to remain broadly stable compared to Q3 2025. The three-month topline could decline by up to 5% as the full impact of the temporary rig suspension is felt in Q3, partly offset by increased rig-move activity.

The CEO said ADC has adopted a clear plan to boost financial performance, projecting a rise in utilization rate to 80% by Q2 2026 following the restart of five rigs — two offshore and three onshore, alongside the launch of the company's first international contract in the GCC region.

He mainly attributed the Q3 2025 net profit drop to the suspension of several rigs, which reduced the utilization rate to 73% during the third quarter from 86% a year earlier. In particular, offshore rig suspensions had the greatest impact due to their higher profitability.

Revenues were originally expected to fall by about 10% quarter-on-quarter (QoQ) following the suspension of three rigs (two onshore and one offshore), though cost-control measures taken by the company helped mitigate the downturn, he noted.

During the first nine months of 2025, revenues declined by less than 6% year-on-year (YoY), supported by non-conventional rig operations that offset much of the temporary suspension impact, the CEO added.

By the end of Q3 2025, ADC had operated 45 of its 61 rigs, including eight of 12 offshore rigs engaged in oil drilling, while two offshore rigs are used for the provision of services, according to Mirdad.

Offshore utilization is expected to reach 100% once all suspended rigs resume operations and the GCC contract begins to materialize in early 2026, the top executive revealed.

According to Argaam data, the company’s net profit fell to SAR 73.3 million for the first nine months of 2025, compared to SAR 251.3 million a year earlier. Moreover, it recorded a loss of SAR 9.4 million in Q3 2025.