Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — H1 2025 Earnings Presentation
20 slides from Arabian Drilling's earnings presentation, 2025
Slide 1: Arab Drilling 1H 2025 Earnings Presentation
and Arab Drilling
Slide 2: In today's presentation
1H 2025 Earnings Presentation In today’s presentation Ghassan Mirdad Chief Executive Officer With over 25 years of experience in the oil & gas sector, Ghassan brings expertise in drilling, M&A, and operations. A Sloan Fellow, he holds a master’s from London Business School and a chemical engineering
Slide 3: Disclaimer
1H 2025 Earnings Presentation Disclaimer This presentation has been prepared by Arabian Drilling (the “Company” or “AD") based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purpose
Slide 4: Financial indicators reflect current market challenges (1H 2025)
1H 2025 Earnings Presentation Financial indicators reflect current market challenges 1H 2025 financial highlights (SAR m, versus 1H 2024) Qa e = 1,774 mM 683 u 38.5% REVENUE EBITDA EBITDA Margin -6.9% -13.7% -3.0 ppts ee & oe 83 mu 653 1.90 x NET INCOME Operating CF* NET DEBT / -50.3% -16.1% TTM EBI
Slide 5: Financial indicators reflect current market challenges (Q2 2025)
1H 2025 Earnings Presentation Financial indicators reflect current market challenges Q2 2025 financial highlights (SAR m, versus QI 2025) Qa a 5 862m 303m 35.1% REVENUE EBITDA EBITDA Margin -5.3% -20.6% -6.7 ppts ee & oe 7M 292m 1.90 x NET INCOME Operating CF* NET DEBT / -90.1% -19.2% TTM EBITDA * O
Slide 6: First international contract signed, largest backlog intake since Q3'23
1H 2025 Earnings Presentation First international contract signed, largest backlog intake since Q3’23, utilization rate reflects suspensions Operational Highlights (slE] +2.4 bn Largest Backlog Intake Since Q3 ‘23 da Or 78.7 % 1.03% UTILIZATION RATE Non-Productive Time - YTD (NPT) a8 7 0.40 Total Re
Slide 7: Utilization Inactive
▪ ▪ ▪ ▪ ▪ ▪ ▪ ➢ ➢ Utilization Inactive
Slide 8: Contract renewals in 2025
1H 2025 Earnings Presentation Contract renewals in 2025 Rig Contract Renewal 24 42% of the rigs rolling off in 2025 were renewed in 1H = 10 rigs out of 24 rolling off this year were successfully renewed 4 = Expect all remaining rigs to be renewed in due time 12 14 rig contracts to be renewed in 2025
Slide 9: Slower 1H '25 performance on the back of suspensions
1H 2025 Earnings Presentation Slower 1H ’25 performance on the back of suspensions 1H'24_ 1H’25 CAPEX Spent (to revenue) 919 486 1H'24 1H'25 excludes change in EBITDA 1H'24_ 1H’25 Net Debt (to TTM EBITDA) 1H'24_ 1H’25 Net Income 87% 166 > 83 1H'241H'25 OCF* 6.1% 778 653 1H’24 1H '25 Half Year Perfor
Slide 10: Q2 '25 EBITDA margin impacted by lower revenues and rig moves performance
1H 2025 Earnings Presentation Q2 ’25 EBITDA margin impacted by lower revenues and rig moves performance Quarter Performance = Revenue (-5%): less rig move activity QoQ (-36M) as well as more Revenue EBITDA Net Income out-of-service time (planned shipyard) for one offshore rig (-I6M). Partially offse
Slide 11: Segment analysis
1H 2025 Earnings Presentation Segment analysis Total Revenue and EBITDA % 48% 38.5% e Q's Q2’25 1H'24 1H’25 1 1 Land Il Offshore- - - - - - -~\----- + Offshore Segment Revenue and GP % @ EBITDA% Qres Q2’25 1H’24 1H’25 * EBITDA margin: slightly below the 40% mark, as expected 495 = Land HoH (+23.7%):
Slide 12: Net Income Bridging
1H 2025 Earnings Presentation Net Income Bridging Net profit mainly affected by the change in rig move activities QoQ as well as additional non-recurring income recognized in Q1. Normalized Net Income is flat QoQ. Q1‘25 - Q2 ‘25 Net Income Bridge (SAR Million) QI’25NI Rigmove StartUp Shipyard SG&ACo
Slide 13: Cash on Hand Bridging
1H 2025 Earnings Presentation Cash on Hand Bridging Efficient management of cash and other short-term assets enables Arabian Drilling to meet its debt obligations in time while having sufficient liquidity. QI ‘25 - Q2 ‘25 Cash On Hand Bridge = CAPEX: reaching the end of the Capex growth cycle ‘SAR M
Slide 14: Strong debt profile, net debt to equity still below 2.0x
1H 2025 Earnings Presentation Strong debt profile, net debt to equity still below 2.0x Net Debt (SAR Million) = Net Debt of SAR 2,659M: comprises of gross debt of 3,119M (including 2Bn Sukuk), lease obligations of 34M less cash on hand of 494M. 2,706 = HoH net debt increase of SAR 240M: mainly due t
Slide 15: Q3 2025 Outlook & Guidance
1H 2025 Earnings Presentation Q3 2025 Outlook & Guidance Beginning this year, in response to market conditions within the oil and gas sector and the current global macroeconomic uncertainties, the management team has shifted financial guidance to a quarterly format instead of an annual one. This cha
Slide 16: Confidentiality notice
This document and the information contained in it are given in confidence and are only to be used by the disclosing party and the receiving party to explore business opportunities relating to Arabian Drilling; they may not be disclosed to third parties or used for any other purpose without the expre
Slide 17: Appendix
A, Appendix Arabian Drilling QI 2025 Earnings Call
Slide 18: Total Fleet Active Fleet Inactive Fleet
Total Fleet Active Fleet Inactive Fleet
Slide 19: Net Income & EBITDA Reconciliation
1H 2025 Earnings Presentation Net Income & EBITDA Reconciliation In SAR Million Qr24 Q2'24 Q3'24 9424 FY’24 Qr25 Q2’25 Revenue 967 939 863 850 3,619 on 862 Net Income 146 20 85 70 321 75 7 ADD BACK: Asset impairment charge - 105 - - 105 - - Adjusted Net Income 146 125 85 70 426 7 7 ADD BACK: Finance
Slide 20: Glossary
1H 2025 Earnings Presentation Glossary Glossary Description Active Rig Month Annual number of months where rigs generate revenue Backlog Future contracted revenue yet to be recognized. Book-to-Bill Ratio EBITDA EoP GHG Free Cash Flow HSE IFRS JUs LTIF Rate Calculated as Backlog divided by LTM Revenu