Photo: Arabian Drilling
Saudi Arabia's biggest drilling contractor by fleet size is making money again. The offshore rigs the war had idled are back at work.
Arabian Drilling earned 31.4 million Riyal ($8.4 million) in the third quarter, the company reported on Sunday. That compares with a loss of 31.5 million Riyal in the second quarter and a loss of 9.4 million Riyal a year earlier.
The company credited efficient rig moves, cost cuts and lower finance and tax costs. Its shares rose 5.6% to 98 Riyal, among the day's biggest gainers.
Still a tough year
The recovery hasn't made up for the first half. Nine-month profit fell 91% to 6.9 million Riyal, and revenue fell 8% to about $640 million.
The company blamed the temporary suspension of some offshore drilling and the absence of long-haul rig moves it booked last year.
Why it matters
Arabian Drilling works mainly for Aramco. Some of its offshore rigs in the Gulf were suspended after the war began in the spring, and three returned to work after the second quarter, management said in August.
The third quarter only caught part of that return. The fourth will be the first full quarter with those rigs running.
The bigger picture
Rigs are in short supply worldwide, and Saudi drillers are finding work. Rival ADES said on Sunday that India's state oil company hired two of its older rigs for three years, its third overseas contract in under two weeks.
Arabian Drilling's order backlog stood at 11.8 billion Riyal ($3.1 billion) at mid-year, up 7% from a year earlier.
