Arabian Drilling, an onshore and offshore drilling contractor in Saudi Arabia, has put its capital expenditure (CAPEX) for 2024 between 2.1 billion and 2.4 billion Saudi riyals ($560-640 million), depending on the progress of the unconventional rigs capex programme.

“Arabian Drilling is in a high-intensity capex cycle to deliver on the 13 new rigs dedicated to unconventional gas, with up to SAR1.7 billion of additional investment deployed to complete this programme in 2024,” Hubert Lafeuille, Chief Financial Officer, Arabian Drilling, said in its 2023 financial statement.

“We have the required funding already secured at competitive rates to achieve this and will continue to naturally hedge the cost of our debt by investing our excess cash in short-term deposits,” he added.

The company reported a capex of SAR1.88 billion for 2023, up 8 percent year on year (YoY).

Arabian Drilling reported a net income of SAR605 million, an increase of 25 percent YoY. Revenue stood at SAR3.47 billion, rising 29 percent YoY, driven by higher rig activity and higher day rates, specifically in the offshore segment.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

(anoop.menon@lseg.com)

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