Arabian Drilling Company Reports $20 Million Loss Amid Reduced Rig Utilization

Saudi Arabia's Arabian Drilling Company (ADC) reported a net loss of $20 million for 2025, a sharp contrast to the $85.6 million profit recorded in 2024, the company said.

The decline was attributed primarily to lower utilization rates of the company's drilling rigs, which fell to 75% in 2025 from 83% the previous year, the company said in a statement published on the Saudi stock exchange Tadawul.

Total revenue for 2025 decreased by 5% to $910 million, compared to $970 million in 2024, the company said. The impact of lower rig utilization was partially offset by revenue from unconventional drilling rigs and a new offshore service platform, it added.

In light of the results, the company's board of directors decided against distributing cash dividends to shareholders for the fiscal year 2025. The company cited challenging demand for rigs in Saudi Arabia and the need to support domestic and international expansion plans as reasons for the decision.

Looking ahead, Arabian Drilling anticipates a slight improvement in revenue during the first quarter of 2026, driven by the resumption of operations for reactivated drilling rigs. The company expects capital expenditure for the full year 2026 to reach approximately $200 million, including spending allocated to reactivating drilling rigs.