Saudi oil driller reports 90% profit slump

• Q1 profit down to $1.9m
• Expects revenues to fall further
• Some operations suspended

Arabian Drilling Co reported a nosedive in profits in the first quarter of 2026 and expects revenues to fall further due to the suspension of offshore oil rigs.

The company, which drills for oil in the Arabian Gulf, saw net profit fall by 91 percent compared to Q1 2025 to reach SAR7 million ($1.9 million).

CEO Fahad Albani confirmed that the company had suspended some operations in the Gulf in a disclosure to the Saudi Exchange.

“Safety remains our absolute priority,” he said. “The offshore suspensions reflect a disciplined and precautionary approach taken in close coordination with our clients, with the wellbeing of our people and the integrity of our assets at the forefront.”

The company said it expects revenues to fall by a further 12 percent in Q2. It also reduced its full year capex spend slightly to SAR700 million.

Arabian Drilling is the latest major drilling company to announce suspensions to offshore operations following the outbreak of war with Iran.

In March, Ades Holding announced shutdowns of “a handful of rigs” due to the conflict.

State-owned oil major Saudi Aramco announced its Q1 earnings on Sunday, which saw the largest quarterly jump of net profits on record to hit $32 billion.

It attributed the jump to higher oil prices and its ability to continue exporting crude via the Red Sea.

Further reading:

• Why Gulf oil is ‘irreplaceable’
• Aramco profits hit three-year high with record quarterly jump
• Adnoc Drilling pays $1bn dividend for 2025