An ADC offshore rig
Arabian Drilling Co.'s CEO Fahad Al-Bani expects revenue to decline 12% QoQ in Q2 2026 due to the continued suspension of some offshore rigs, adding that visibility remains limited, making it difficult to provide further details.
Speaking to Al Arabiya, Al-Bani said the regional conflict had no significant impact on the company's Q1 2026 results, as rig suspensions only began at the end of March.
He said the impact will be reflected in the Q2 2026 results, adding that the suspensions were precautionary measures coordinated with clients, with one rig resuming operations last week and the remaining rigs expected to gradually return to service as conditions improve.
Al-Bani attributed the decline in the Q1 2026 profit to changes in the operating mix between offshore and onshore rigs, noting that relocating rigs from northern to southern Saudi Arabia had previously boosted revenue and profit above normal levels, later weighing on land drilling profitability.
He added that the company reduced planned 2026 capital expenditure by SAR 50 million to around SAR 700 million to adapt to current conditions, while continuing to pursue expansion outside Saudi Arabia as part of its future strategy.
Arabian Drilling’s net profit fell to SAR 7.1 million in Q1 2026, from SAR 75.2 million a year earlier, according to Argaam’s data.
The company announced in March a temporary suspension of some offshore drilling rigs in the Arabian Gulf due to the ongoing regional developments.
Comments
{{DisplayName}}
{{ElapsedTime}}