Update shared on18 Sep 2025
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.
- The Board recommended pausing cash dividends for 2025 to prioritize CAPEX investments and regional expansion due to changing rig demand in Saudi Arabia.
- Arabian Drilling secured its first offshore contract outside Saudi Arabia, with a GCC-based company, adding SAR 75 million to backlog and initiating operations in Q1 2026.
- The company established a new branch in Sharjah, UAE, to serve as a base for expanded regional operations within the GCC.
- A three-year offshore contract extension was signed with Khafji Joint Operations, adding 8.0%-12.0% of 2024 revenues to backlog, and contract extensions for four rigs with Aramco secured a backlog of SAR 1,374 million.
Valuation Changes
Summary of Valuation Changes for Arabian Drilling
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from SAR90.35 to SAR89.23.
- The Consensus Revenue Growth forecasts for Arabian Drilling remained effectively unchanged, moving only marginally from 5.4% per annum to 5.5% per annum.
- The Future P/E for Arabian Drilling remained effectively unchanged, moving only marginally from 29.49x to 29.19x.
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