Arabian Drilling profit drops to SAR 251.2M in 9M 2024, SAR 84.8M in Q3

Arabian Drilling Co. (ADC) reported a net profit of SAR 251.2 million in the first nine months of 2024, marking a drop of 40% from SAR 421.8 million in the year-earlier period. 

The nine-month profit decline was mainly triggered by the one-off non-cash asset impairment charge of SAR 105 million recognized in Q2 2024. The company also noted higher net finance expenses, and depreciation and amortization costs.

This was partially offset by an increase in revenue, which rose due to the addition of three new offshore rigs that started in Q3 2023 and the startup of eight land unconventional rigs in 2024.

However, ADC also reported the suspension of three offshore rigs and one end of the contract

In Q3 2024, ADC’s net profit dropped 39% to SAR 84.8 million, from SAR 140 million in the prior-year period as the company suspended three offshore rigs after contract expiration. This was partially offset by the startup of eight unconventional rigs.

Net earnings skyrocketed on a sequential basis from SAR 20.1 million in Q2 2024, thanks to recording a one-off non-cash asset impairment charge of SAR 105 million and the startup of eight unconventional rigs.

Total shareholders’ equity, no minority interest, decreased to SAR 5.86 billion as of Sept. 30, 2024, from SAR 6.01 million a year earlier.

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