Arabian Drilling incurs SAR 24.5M loss in H1 2026, SAR 31.5M in Q2

Arabian Drilling Co. (ADC) posted a net loss of SAR 24.5 million for H1 2026, against a net profit of SAR 82.7 million a year earlier.

The company attributed the loss in H1 2026 to a 10.56% decline in revenue, mainly due to a lower rig utilization rate of 72% versus 79%, the temporary suspension of certain offshore drilling operations, and the absence of the high profit margin generated from the rig relocation operation in the year-earlier period.

This was despite a decrease in administrative and depreciation expenses.

In Q2 2026, the company swung to a net loss of SAR 31.5 million, from a net profit of SAR 7.48 million in Q2 2025.

The company attributed the loss in Q2 2026 to an 11.34% decline in revenue, mainly due to a lower rig utilization rate of 72% versus 79%. This was partially offset by the full-period contribution from revenue generated by unconventional drilling rigs and the new offshore services rig.

This came despite lower administrative expenses as a result of cost optimization initiatives.

On a sequential basis, it also incurred losses compared with SAR 7.05 million profit in Q1 2026.

This loss was due to a 6.92% decline in revenue, mainly due to the SAR 122 million impact of the temporary suspension of certain offshore drilling operations. This was partially offset by a SAR 47 million improvement in the land rigs segment and a full-quarter contribution of SAR 18 million from operations in GCC countries.

Shareholders’ equity, with no minority interest, declined to SAR 5.72 billion as of June 30, 2026, from SAR 5.89 billion a year earlier.

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