Arabian Drilling profits jump 503% during Q3 to SR213.4 mln

The Arabian Drilling Company revealed an increase in net profit after zakat and tax in the third quarter to SR213.4 million, compared to SR35.4 million in the same quarter of last year, by 503%.
This came after the announcement on Thursday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR177.8 million in the third quarter, compared to SR69.1 million in the same quarter of the previous year, a growth of 157.3%.
The net profit after zakat and tax in the 9-month period amounted to SR421 million, compared to SR155.3 million in the same period last year, an increase of 171%.
Gross shareholders’ equity “without minority rights” amounted to SR4.58 billion in the current period, compared to SR4.03 billion in the same period last year, an increase of 13.4%
Profits per share in the current period reached SR7.2, compared to sR687.7 in the same period last year.
The reason for the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The same quarter of the prior year was impacted by certain rigs being temporarily suspended as well as lower day rates compared with the current quarter resulting in a revenue increase.
In addition, the current quarter’s net income includes favorable impacts resulting from a reduction in deferred tax liabilities as well as the reversal of training provisions.
The reason for the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The increase in net income is mainly driven by strong revenues supported by higher rig utilization as well as the full quarter impact of increased day rates for certain offshore rigs. In addition, an increase in net income was also due to a reduction in deferred tax liabilities due to changes in historical foreign shareholding.
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The increase in the current period net income is due to improved rig utilization following temporarily suspended rigs resuming drilling operations as well as an increase in offshore day rates.
Other favourable current period net income impacts include a reduction in deferred tax liabilities as well as a reversal of training provisions.
These increases in the current period’s net income were partially offset by higher operating costs and higher financial charges driven by increased rig activity and an increase in SAIBOR.
Arabian Drilling completed an Initial Public Offering transaction and commenced trading 30% of its capital on Saudi Stock Exchange (Tadawul) on November 7, 2022.
As of 2021 September, profits per share are based on the weighted average number of shares of 225800.
In 2022 the Group proceeded to an increase of shares by issuing 77,742,000 new shares through capitalization of retained earnings and additional paid-in capital.