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

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

06/11/2024 Argaam Exclusive

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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. 



Financials (M)

Item 9m 2023 9m 2024 Change‬
Revenues 2,489.51 2,769.16 11.2 %
Gross Income 702.99 682.52 (2.9 %)
Operating Income 563.72 530.45 (5.9 %)
Net Income 421.81 251.25 (40.4 %)
Average Shares 89.00 89.00 -
EPS (Riyals) 4.74 2.82 (40.4 %)

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



Current Quarter Comparison (M)

Compared With The
Item Q3 2023 Q3 2024 Change‬
Revenues 919.58 863.19 (6.1 %)
Gross Income 266.68 179.63 (32.6 %)
Operating Income 212.34 135.26 (36.3 %)
Net Income 140.04 84.81 (39.4 %)
Average Shares 89.00 89.00 -
EPS (Riyals) 1.57 0.95 (39.4 %)

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.

 

Attached Documents

 



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 - - - - - -
Q2 2017 - - - - - -
Q3 2017 - - - - - -
Q4 2017 - - - - - -
Q1 2018 - - - - - -
Q2 2018 - - - - - -
Q3 2018 - - - - - -
Q4 2018 - - - - - -
Q1 2019 - - - - - -
Q2 2019 - - - - - -
Q3 2019 - - - - - -
Q4 2019 - - - - - -
Q1 2020 - - - - - -
Q2 2020 - - - - - -
Q3 2020 - - - - - -
Q4 2020 - - - - - -
Q1 2021 - - - - - -
Q2 2021 - - - - - -
Q3 2021 547.74 - 97.46 - 67.26 -
Q4 2021 595.42 - 169.82 - 142.86 -
Q1 2022 598.53 - 156.65 - 120.28 -
Q2 2022 652.90 - 186.93 - 148.81 -
Q3 2022 701.84 28.1 % 216.42 122.1 % 177.47 163.9 %
Q4 2022 750.27 26.0 % 241.44 42.2 % 175.24 22.7 %
Q1 2023 779.28 30.2 % 207.25 32.3 % 172.29 43.2 %
Q2 2023 790.65 21.1 % 229.05 22.5 % 179.09 20.4 %
Q3 2023 919.58 31.0 % 266.68 23.2 % 212.34 19.6 %
Q4 2023 987.01 31.6 % 272.92 13.0 % 230.44 31.5 %
Q1 2024 966.67 24.0 % 268.73 29.7 % 211.25 22.6 %
Q2 2024 939.30 18.8 % 234.16 2.2 % 183.95 2.7 %
Q3 2024 863.19 (6.1 %) 179.63 (32.6 %) 135.26 (36.3 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2015 - - - - - -
Q2 2015 - - - - - -
Q3 2015 - - - - - -
Q4 2015 - - - - - -
Q1 2016 - - - - - -
Q2 2016 - - - - - -
Q3 2016 - - - - - -
Q4 2016 - - - - - -
Q1 2017 - - - - - -
Q2 2017 - - - - - -
Q3 2017 - - - - - -
Q4 2017 - - - - - -
Q1 2018 - - - - - -
Q2 2018 - - - - - -
Q3 2018 - - - - - -
Q4 2018 - - - - - -
Q1 2019 - - - - - -
Q2 2019 - - - - - -
Q3 2019 - - - - - -
Q4 2019 - - - - - -
Q1 2020 - - - - - -
Q2 2020 - - - - - -
Q3 2020 - - - - - -
Q4 2020 - - - - - -
Q1 2021 - - - - - -
Q2 2021 - - - - - -
Q3 2021 35.44 - 0.44 - 35.44 0.44
Q4 2021 118.31 - 1.48 - 118.31 1.48
Q1 2022 93.63 - 1.17 (2.90) 96.54 1.21
Q2 2022 114.02 - 1.43 (5.23) 119.25 1.49
Q3 2022 213.37 502.0 % 2.67 72.35 141.02 1.76
Q4 2022 136.69 15.5 % 1.54 (6.43) 143.13 1.61
Q1 2023 141.48 51.1 % 1.59 - 141.48 1.59
Q2 2023 140.29 23.0 % 1.58 - 140.29 1.58
Q3 2023 140.04 (34.4 %) 1.57 - 140.04 1.57
Q4 2023 182.81 33.7 % 2.05 - 182.81 2.05
Q1 2024 146.26 3.4 % 1.64 - 146.26 1.64
Q2 2024 20.18 (85.6 %) 0.23 (105.00) 125.18 1.41
Q3 2024 84.81 (39.4 %) 0.95 - 84.81 0.95

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 - - -
Q4 2018 - - -
Q1 2019 - - -
Q2 2019 - - -
Q3 2019 - - -
Q4 2019 - - -
Q1 2020 - - -
Q2 2020 - - -
Q3 2020 - - -
Q4 2020 - - -
Q1 2021 - - -
Q2 2021 - - -
Q3 2021 - - -
Q4 2021 - - -
Q1 2022 - - -
Q2 2022 25.51 % 41.19 % 15.43 %
Q3 2022 28.64 % 43.75 % 18.64 %
Q4 2022 29.64 % 42.43 % 18.49 %
Q1 2023 29.54 % 42.20 % 18.89 %
Q2 2023 29.59 % 42.13 % 18.73 %
Q3 2023 29.15 % 42.31 % 17.44 %
Q4 2023 28.07 % 42.52 % 17.39 %
Q1 2024 28.31 % 42.01 % 16.63 %
Q2 2024 27.34 % 42.94 % 15.59 %
Q3 2024 25.44 % 41.66 % 14.35 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 - - - -
Q2 2015 - - - -
Q3 2015 - - - -
Q4 2015 - - - -
Q1 2016 - - - -
Q2 2016 - - - -
Q3 2016 - - - -
Q4 2016 - - - -
Q1 2017 - - - -
Q2 2017 - - - -
Q3 2017 - - - -
Q4 2017 - - - -
Q1 2018 - - - -
Q2 2018 - - - -
Q3 2018 - - - -
Q4 2018 - - - -
Q1 2019 - - - -
Q2 2019 - - - -
Q3 2019 - - - -
Q4 2019 - - - -
Q1 2020 - - - -
Q2 2020 - - - -
Q3 2020 - - - -
Q4 2020 - - - -
Q1 2021 - - - -
Q2 2021 - - - -
Q3 2021 80.00 - - 50.48
Q4 2021 80.00 - - 52.40
Q1 2022 80.00 - - 53.15
Q2 2022 80.00 4.52 4.62 54.59
Q3 2022 80.00 6.74 5.94 57.25
Q4 2022 89.00 6.27 5.62 62.81
Q1 2023 89.00 6.80 6.12 64.40
Q2 2023 89.00 7.10 6.36 65.97
Q3 2023 89.00 6.28 6.35 67.55
Q4 2023 89.00 6.79 6.79 66.98
Q1 2024 89.00 6.85 6.85 68.63
Q2 2024 89.00 5.50 6.68 66.33
Q3 2024 89.00 4.88 6.06 65.95

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 - - -
Q4 2018 - - -
Q1 2019 - - -
Q2 2019 - - -
Q3 2019 - - -
Q4 2019 - - -
Q1 2020 - - -
Q2 2020 - - -
Q3 2020 - - -
Q4 2020 - - -
Q1 2021 - - -
Q2 2021 - - -
Q3 2021 - - -
Q4 2021 - - -
Q1 2022 - - -
Q2 2022 - - -
Q3 2022 - - -
Q4 2022 17.97 20.05 1.79
Q1 2023 22.46 24.96 2.37
Q2 2023 21.69 24.22 2.33
Q3 2023 29.96 29.62 2.78
Q4 2023 28.12 28.12 2.85
Q1 2024 24.57 24.57 2.45
Q2 2024 24.45 20.13 2.03
Q3 2024 23.58 18.99 1.74

Business Segments (Million)

Compared With The
Period Land Rigs Off-shore Rigs Other
Q3 2021 387.71 159.57 0.46
Q4 2021 441.60 153.01 0.80
Q1 2022 436.17 161.07 1.29
Q2 2022 467.10 183.73 2.07
Q3 2022 486.24 213.80 1.79
Q4 2022 505.26 243.26 1.76
Q1 2023 478.67 299.42 1.19
Q2 2023 488.91 301.72 0.02
Q3 2023 500.85 418.55 0.18
Q4 2023 539.21 447.80 -
Q1 2024 513.60 453.07 -
Q2 2024 520.05 419.25 -
Q3 2024 563.41 299.78 -

Analysts Estimates (Million)

Item Q3 2024 (e) Q3 2024 (a) Change‬
Average 96.65 84.81 (12.2 %)

Estimates vs Actual (Million)

Item Q3 2024 (e) Q3 2024 (a) Change
GIB Capital 83.00 84.81 2.2 %
SNB Capital 79.60 84.81 6.5 %
AlJazira Capital 104.00 84.81 (18.4) %
Al Rajhi Capital 120.00 84.81 (29.3) %

Current
Market Cap (M Riyal) 9,825.60
Enterprise Value (EV) (M) 12,386.25
Shares Outstanding ((M)) 89.00
EPS ( Riyal) (TTM) 4.88
Book Value (BV) ( Riyal) 65.95
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 18.23
P/E (TTM) 22.64
Price/book 1.67
Return on Average Assets (%) (TTM) 4.2
Return on Average Equity (%) (TTM) 7.3

Share Price

110.40
(1.60) (1.43 %)

Arabian Drilling Co. (ARABIAN DRILLING)


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