Arabian Drilling now says no dividend in 2H

Arabian Drilling now says no dividend in 2H

Arabian Drilling Co. has announced that its board of directors has decided not to distribute a cash dividend for the second half of 2025, marking a departure from its previous dividend practices. This decision aligns with the company's broader strategy to suspend dividend payments for the full 2025 fiscal year, as previously authorized by shareholders. The board cited challenges in rig demand within Saudi Arabia during 2025 and the need to prioritize resources for local and international expansion initiatives as key factors influencing the decision according to company statements.

In contrast, the company distributed a 25.3% cash dividend (SAR 2.53 per share) for the second half of 2023, reflecting stronger financial performance at that time. For the full year 2023, Arabian Drilling paid out a total dividend of 50.6% (SAR 5.06 per share) as reported. However, the company reported a net loss of SAR 75.3 million in 2025, a sharp reversal from a net profit of SAR 321.4 million in 2024.

The dividend suspension for 2025 was approved despite shareholder opposition, as an extraordinary general assembly in October 2025 rejected the board's initial recommendation to suspend distributions. The decision underscores the company's focus on navigating industry challenges and funding growth amid shifting market conditions. Investors are advised to review the company's official disclosures for further details.