Arabian Drilling Posts 31.4 Mln Riyal Quarterly Profit, Record Backlog

what happened

Saudi drilling contractor Arabian Drilling reported, according to Reuters, a quarterly net profit of 31.4 million riyals. Sales came in at 810.7 million riyals, down 2.9% from the previous quarter as rig activity declined.

The company pointed to efficient rig moves, cost optimization initiatives, lower net finance costs and a smaller income tax expense. Its order backlog reached an all-time high of 17.6 billion riyals at the end of September.

For the fourth quarter of 2026, the company expects revenue to grow by roughly 8–10% quarter on quarter. Its capital expenditure for 2026 is projected at 750–800 million riyals.

why it matters

Drilling contractors depend on the number of active rigs and on investment programs of regional oil producers, so a record backlog matters for judging utilization in the coming periods. The revenue decline, however, suggests activity across individual contracts is still uneven. One company's results give a limited view of the sector, but for investors in regional service firms they serve as a reference point for utilization and costs.

market impact

Saudi oilfield services: record backlog supports the company's utilization outlook, while the revenue dip signals uneven activity.

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