Arabian Drilling forecasts 2023 revenue to range SAR 3.3-3.5 bln

An Arabian Drilling Co. onshore rig

Arabian Drilling Co. expected revenue to be between SAR 3.3 billion and SAR 3.5 billion in 2023, with capital expenditure in the range of SAR 1.2-1.4 billion.

In a statement, the company noted that these expectations matched the ongoing work on the development of the three newly purchased offshore rigs. This is in addition to the renovation and development projects for some of the offshore rigs and the company's facilities.

Arabian Drilling eyes strong financial performance in 2023, which reflects market dynamics leading to increased rig operating efficiency and daily rate pricing, the company’s CEO Ghassan Mirdad said.

Mirdad added that offshore drilling is expected to continue to increase, with three new offshore rigs purchased on five-year contracts. Demand for onshore rigs is also poised to enter the next growth phase, supported by the development of the traditional Jafurah gas field.

CFO Hubert Lafeuille said Arabian Drilling has delivered a strong operational and financial performance. He pointed out that focus is still directed towards improving its capital structure by maintaining a good balance sheet with a low level of indebtedness, which will give the company ample scope to provide the necessary financing to support growth and maintain sustainable cash dividends.

According to data available on Argaam, Arabian Drilling’s profit increased to SAR 557.7 million in 2022, compared to SAR 273.6 million in 2021. Q4 2022 profit stood at SAR 136.7 million.