Arabian Drilling swings to 31.4 million riyal profit as rigs restart

Summary

• Arabian Drilling posted a 31.4 million riyal third-quarter profit, reversing a 9.4 million riyal loss.
• Revenue rose 6% from the second quarter after four offshore rigs resumed operations, the company said.
• Nine-month profit still collapsed 90.586%, showing how deeply the offshore suspension cut into 2026 earnings.

The latest

Arabian Drilling returned to profit in the third quarter of 2026, booking 31.4 million riyals attributable to shareholders against a 9.4 million riyal loss a year earlier and a 31.5 million riyal loss in the second quarter. In a filing to the Saudi Exchange on Sunday, 8 November 2026, the company tied the quarterly revenue rebound to the resumption of four offshore rigs.

Details

• The quarterly numbers: Third-quarter revenue reached 810.7 million riyals, down 2.956% from 835.4 million riyals in the same quarter of 2025 but up 6.015% from 764.7 million riyals in the second quarter, according to the filing. Gross profit climbed 32.011% to 133.2 million riyals from 100.9 million.
• Operating performance: Operating profit for the quarter rose 48.643% year-on-year to 82.2 million riyals from 55.3 million riyals, a faster improvement than the gross profit line, which the company attributed in part to cost-improvement initiatives rather than to higher sales volumes.
• The nine-month picture: For the nine months ending 30 September 2026, net profit fell 90.586% to 6.9 million riyals from 73.3 million a year earlier. Revenue declined 8.125% to 2,397 million riyals from 2,609 million, and operating profit dropped 37.962% to 160.8 million riyals.
• Company explanation: Arabian Drilling said the year-on-year quarterly improvement came from rig-moving efficiency, cost-improvement initiatives, lower net finance costs and a lower income tax expense. The sequential revenue gain was driven by four offshore rigs restarting, partly offset by weaker onshore rig activity.
• What caused the slump: The nine-month revenue decline of 8.1% was attributed to the temporary suspension of some offshore drilling operations and to the absence of long rig-moving activity during the period. The company did not disclose which contracts were suspended or when the remaining rigs would return.
• Shareholder metrics: Earnings per share for the nine months fell to 0.08 riyals from 0.82 riyals a year earlier, calculated on 89,000,000 shares. Total equity stood at 5,760.2 million riyals, down 2.132% from 5,885.7 million riyals.
• The auditor: The filing stated that the auditor's report on the interim figures was unmodified, meaning no reservations were attached to the preliminary results published to the Saudi Exchange for the period ending 30 September 2026.
• Timing of disclosure: The announcement was filed at 08:39 on 8 November 2026 through the Saudi Exchange issuer-announcements platform. No management commentary beyond the stated operational and cost factors accompanied the preliminary figures.

Background

Arabian Drilling operates both onshore and offshore rig fleets in Saudi Arabia. The temporary suspension of offshore drilling work weighed on its revenue through the first half of 2026, pulling nine-month earnings far below the prior year despite the third-quarter recovery.

Between the lines

The quarterly rebound is narrower than it looks: revenue is still below the same quarter of 2025, so the swing to profit rests largely on the cost and finance lines the company itself cited, not on a sales recovery. With onshore activity falling even as four offshore rigs restart, the fleet mix is shifting rather than simply expanding.

What's next

Watch the full-year 2026 results for whether the remaining suspended offshore rigs resume, and whether the onshore decline continues to offset offshore gains in fourth-quarter revenue.

Source: Saudi Exchange (Tadawul) — Arabian Drilling disclosure