Shares in Arabian Drilling rose 2.29 percent on Tuesday after the company disclosed a contract with a new client in a Gulf Cooperation Council state. By 10:20 a.m. Mecca time the stock had added about two riyals from the previous close of 87.50 riyals (23.33 dollars) to trade at 89.50 riyals (23.87 dollars), on 295 trades covering more than 29,000 shares worth over 2.5 million riyals (666,700 dollars).
Terms Withheld
The company named neither the client nor the value or duration of the contract, saying only that work is due to begin before the end of the third quarter of 2026. It framed the deal as entry into a new GCC market that draws on its offshore drilling experience and adds to its order backlog and future revenue.
A Quarter in the Red
The announcement follows a difficult quarter. Arabian Drilling posted a loss of 31.5 million riyals (8.4 million dollars) in the second quarter of 2026, against a profit of 7.5 million riyals (2 million dollars) a year earlier. Revenue fell 11.34 percent to 764.7 million riyals (204.2 million dollars) from 862.5 million riyals (230.3 million dollars), and fleet utilisation slipped to 72 percent from 79 percent. The company attributed the swing to the suspension of several offshore rigs amid rising geopolitical tension in the Gulf.
Rigs Back to Work
Days before the contract was announced, the company had received notice that suspended offshore rig operations would resume. It expects offshore fleet utilisation to reach 100 percent by the end of the third quarter.
Chief Executive Fahad Al-Bani said the contract marks an important step in the company’s growth and regional expansion, and that it continues to widen its regional footprint with a focus on sustainable growth and long-term shareholder value.
Six Decades of Drilling
Founded in 1964, Arabian Drilling is Saudi Arabia’s largest rig contractor by fleet size, operating both land and offshore rigs in oil and gas well drilling and related services. Its main customers include Saudi Aramco and Al-Khafji Joint Operations, alongside international firms such as SLB and Baker Hughes. It completed its first international offshore drilling contract ahead of schedule.
This story was produced in the newsroom from the disclosed sources named above.
