Arabian Drilling’s Q3 revenue surges by 16% on higher rig activity

Arabian Drilling’s Q3 revenue surges by 16% on higher rig activity

Image courtesy: Arabian Drilling

Saudi oilfield services firm, Arabian Drilling Company, said its Q3 2023 revenues jumped by more than 16 per cent to SAR920m, driven by the start-up of three additional offshore rigs on five-year contracts.

The drilling company’s reported revenues of SAR2.5bn year to date (YTD), more than 27 per cent on higher rig activity and higher prices, more specifically in the offshore segment.

Arabian Drilling’s earnings before interest, taxes, depreciation and amortisation (EBITDA) in the three months to September 30 reached SAR392m, with a margin of 42.6 per cent, representing a more than 40 basis points increase quarter-on-quarter (QoQ).

The company’s EBITDA in the first nine months of the year reached SAR1.1bn, rising more than 26 per cent YoY, with profitability of 42.2 per cent, slightly lower than that of the previous year, mainly due to additional employee benefits costs.

Arabian Drilling Q3 2023 net income remained flat QoQ, with the increase in operating profit mostly offset by higher finance costs.

“Previously in Q2 2023, SAR20m of finance costs were capitalised as part of the new offshore rigs capital expenditures (capex) programme,” the drilling firm said in a bourse filing, adding that this capitalisation of finance cost did not reoccur during the