Arabian Drilling

2381: Contract Extensions And Board Changes Will Shape Performance Through 2025

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

13 Mar 25

Updated

03 Dec 25

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

-17.6%

7D

1.4%

Loading

1Y

-17.6%

7D

1.4%

You can edit this narrative until Dec 4 6:05 AM. Then, changes will post as Updates.

Author's Valuation

ر.س97.232.4% undervalued

AnalystConsensusTarget Fair Value

Shared on 03 Dec 25

2381: Backlog Expansion Will Support Stable Outlook As Board Reviews Dividend Policy

Analysts have marginally raised their price target for Arabian Drilling to about SAR 97.23, reflecting slightly higher long term profitability expectations and a modestly increased cost of equity embedded in their valuation models. What's in the News Arabian Drilling secured four rig contract renewals with Saudi Aramco worth over SAR 2 billion, adding 30 committed rig years and lifting its backlog to a record SAR 12.2 billion by the end of 2025, with financial impact expected from the first quarter of 2026 (company announcement).

Shared on 19 Nov 25

Fair value Increased 1.79%

2381: Revenue Forecasts Will Remain Stable As Board Considers Dividend Pause

Narrative Update on Arabian Drilling: Analyst Price Target Revision Analysts have raised their fair value estimate for Arabian Drilling from SAR 95.52 to SAR 97.23. This change reflects modestly higher revenue growth expectations, despite a slight decline in projected profit margin.

Shared on 04 Nov 25

Fair value Increased 7.05%

Analysts have raised their price target for Arabian Drilling from SAR 89.23 to SAR 95.52. They cite an improved revenue growth outlook and a slightly lower discount rate as key contributing factors.

Shared on 18 Sep 25

Fair value Decreased 1.23%

Despite nearly unchanged consensus revenue growth and future P/E expectations, the analyst price target for Arabian Drilling saw a negligible reduction from SAR90.35 to SAR89.23. What's in the News Arabian Drilling signed a one-year extension for all eleven LSTK gas land rigs with SLB, representing 15.0%-20.0% of 2024 revenues and securing the largest quarterly backlog intake since Q3 2023.

Shared on 01 May 25

Fair value Decreased 25%

Shared on 24 Apr 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 17 Apr 25

Fair value Increased 16%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 09 Apr 25

Fair value Decreased 18%

Shared on 02 Apr 25

Fair value Decreased 2.93%

AnalystConsensusTarget has decreased revenue growth from 6.1% to 5.4%.

Shared on 26 Mar 25

Fair value Decreased 4.58%

AnalystConsensusTarget has decreased revenue growth from 8.6% to 6.1%, increased profit margin from 13.3% to 15.2% and decreased future PE multiple from 35.5x to 31.9x.

Shared on 19 Mar 25

Fair value Increased 30%

AnalystConsensusTarget has increased revenue growth from 5.7% to 8.6%, decreased profit margin from 18.9% to 13.3% and increased future PE multiple from 27.1x to 35.5x.

AnalystConsensusTarget Fair Value

ر.س97.23

2.4% undervalued

Future estimation in

% p.a.

0

Decrease

Increase

Current revenue growth rate

6.30%

Energy Services revenue growth rate

0.14%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

19.88%

Calculation

ر.س453.55m

Earnings '28

x

32.91x

PE Ratio '28

=

ر.س14.93b

Market Cap '28

ر.س14.93b

Market Cap '28

/

89.00m

No. shares '28

=

ر.س167.72

Share Price '28

ر.س167.72 Share Price '28

Discounted to 2025 @ 19.93% p.a.

=

ر.س97.23

Fair Value '25