Arabian Drilling expects capex at SAR 2.4B in 2024

Logo of Arabian Drilling Co.

Arabian Drilling Co. announced that capital expenditure (capex) for 2024 is anticipated to range between SAR 2.1 billion and SAR 2.4 billion, depending on the progress of the unconventional rigs capex program.

In its financial statement for 2023, the company indicated that total revenues are projected to range between SAR 3.6 billion and SAR 3.9 billion, reflecting a pattern of continuous growth.

Future dividends will be reviewed based on the company’s ongoing capex program and cash management requirements to support investments for sustainable long-term growth.

“We delivered significant wins in 2023 including the completion of the offshore fleet expansion and the strategic positioning in unconventional gas, with 13 unconventional rig contracts awarded to Arabian Drilling to date. We look forward to playing our part in growing this exciting and sustainable sector for the Kingdom,” said CEO Ghassan Mirdad.

“Our strong footprint in the onshore segment, with the addition of the 13 rigs in the unconventional gives us a good balanced and resilient business model across offshore and land segments. To date, there has been no changes in our offshore fleet activity in light of the recent updates in the Saudi market,”  Mirdad noted.

He said that Arabian Drilling was selected to drill in the emerging geothermal sector.

“This, together with our presence in unconventional gas will continue to entrench Arabian Drilling as an important contributor to the development of sustainable energy sources for Saudi Arabia.

“In line with our stated GCC ambitions, we have also completed the pre-qualification process in Kuwait which opens the door to participate in tenders with high spec land rigs,” Mirdad said.

According to data available on Argaam, Arabian Drilling's profit surged to SAR 605 million in 2023, rising 8% from SAR 558 million in 2022. Fourth-quarter profit reached SAR 183 million.