Off the 2Q26 Call

Research evidence excerpt

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M

Update

August 11, 2026 01:04 PM GMT

Arabian Drilling Co | Europe

Morgan Stanley & Co. International plc+

Ricardo Rezende, CFA

Equity Analyst

Off the 2Q26 Call

Giulia Faro

Research Associate

Bottom line: mixed. The call was centered on whether the offshore recovery can

hold, the pending LSTK tender, utilization, land margins, dividends and regional

expansion. Management said three offshore rigs returned on 1 August, expressed

Sylvia C Richards

Research Associate

confidence in 4-6% Q3 revenue growth and expects offshore utilization to reach

Arabian Drilling Co (2381.SE, ARABIAND AB)

100% once two further resumptions are received. It also said most Q2 land-margin

EEMEA - Oil & Gas | Saudi Arabia

gains are structural. Visibility remains dependent on resumption and tender timing,

August, with a larger benefit expected in Q4. Offshore utilization would reach 100%

Stock Rating

Industry View

Price target

Shr price, close (Aug 10, 2026)

52-Week Range

Mkt cap, curr (mn)

Net debt (12/26e) (mn)*

EV, curr (mn)*

once two additional rigs receive resumption notices; management cited 85-90%

* = GAAP or approximated based on GAAP

regional conflict risk and the board’s dividend review.

3Q Guidance. Management said it is very confident in 4-6% Q3 revenue growth,

supported by a partial contribution from the three offshore rigs that returned on 1

Equal-weight

No Rating

SAR 96.00

SAR 86.70

SAR 107.00- 72.15

SAR 7,716

SAR 2,445

SAR 10,067

aggregate land and offshore utilization for Q4, with a path above 90% if the

resumptions and land awards materialize. It could not rule out further suspensions

amid regional uncertainty.

LSTK tender. Management said it sees no current risk of postponement and

continues to expect the LSTK award announcement in August 2026. It indicated that

the award could cover more rigs than the previous scope and said any increase

would be disclosed with the announcement. If the contract and potential additional

rigs materialize, management expects onshore utilization to reach around 95%.

Onshore margins. Management described the 14% Q2 land gross margin as a

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