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.
What's in the News
- Arabian Drilling scheduled a Special/Extraordinary Shareholders Meeting on October 22, 2025, in Khobar, Saudi Arabia, to consider the composition of the new Board of Directors and the transfer of SAR 267 million from statutory reserves to retained earnings. The meeting will also address the potential suspension of dividends through the end of 2025 (Key Developments).
- The Company will hold a Board Meeting on September 27, 2025, to discuss the early termination of the current Board's term and the commencement of a new four-year term for the Board of Directors starting November 2, 2025 (Key Developments).
- Arabian Drilling signed a one-year extension for all eleven LSTK gas land rigs with SLB, valued at 15% to 20% of the Company’s 2024 revenues. The contract renewals boosted quarterly backlog intake above SAR 2.4 billion, the Company's highest since Q3 2023 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from SAR 89.23 to SAR 95.52, reflecting a positive revision in perceived fair value.
- Discount Rate has fallen from 20.91% to 19.79%, which indicates slightly lower perceived risk in the valuation model.
- Revenue Growth forecasts have risen marginally from 5.47% to 5.83%.
- Net Profit Margin is projected to decrease slightly, moving from 11.76% to 11.45%.
- Future P/E ratio estimates have increased from 29.19x to 30.88x, which suggests higher valuation multiples being applied to future earnings.
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