Arabian Drilling sees first dividend payout in Q4 2023

One of ADC's offshore rigs

Arabian Drilling Co. expects to pay its first cash dividend in the fourth quarter of 2023. The dividend will be determined based on the company’s financial performance for H1 2023.

The company added that its revenue guidance for 2023 remains unchanged, ranging between SAR 3.3-3.5 billion. Capital expenditures will range between SAR 1.2-1.4 billion, in line with the ongoing shipyard activities of the three new jackups recently purchased.

ADC also expected to maintain a healthy leverage ratio, with a net debt-to-earnings before interest, taxes, depreciation, and amortization (net debt/EBITDA) of below 1x, noting this guidance may change based on potential growth opportunities and/or new awards.

It also continues shipyard activities related to its three jackups, AD140, AD150 and AD130 as scheduled and in line with the previously set budget to start implementing the five-year contracts sealed with Saudi Aramco.

On financial performance, ADC’s Q1 2023 net profit rose to SAR 141 million, thanks to revenue growth driven by the two recently acquired jackups, AD110 and AD120, which have started their operations since December 2022.

On segment level, revenue from offshore rigs jumped 86% year-on-year (YoY) to SAR 299 million in Q1 2023, driven by the operation of new jackups.

Land rigs reported a 10% revenue rise to SAR 480 million, from SAR 438 million in Q1 2022.

The company’s rig efficiency ratio rose to 94% in Q1 2023, thank to 44 active rigs out of the 47-rig fleet, ADC added.