Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• reported no serious hazardous waste spills last five years
• one of the first drilling contractors in the Kingdom to have launched a programme to reduce its carbon footprint via a number of short term and long-term initiatives

Social Achievements

• 76.2 per cent. Saudi nationals employed by the Company and 71.7 per cent. Saudi nationals employed by the Group as of 31 December 2021G
• social campaigns for health and safety awareness for its employees, their family members and the public
• promoting local sourcing by giving priority to local suppliers thus contributing to the growth of the local economy

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks Relating to the Impact of Fluctuations in Oil and Natural Gas Prices on the Level of Expenditure by the Oil and Gas Industry and Demand for Drilling Services
• Risks Related to Concentration of Revenues from Saudi Aramco and to Top Ten Rigs
• Risks Relating to the Ability to Win New Contracts, and Renewal or Extension of Existing Contracts
• Risks Related to Non-performance of Drilling Contracts by the Group
• Risks Related to Backlog
• Risks Related to Drilling Contracts Containing Fixed Day Rates
• Risks Related to Contracts Being Subject to Suspension, Early Termination or Variance
• Risks Related to Rig Operational Costs Not Necessarily Fluctuating in Proportion to Changes in Operating Revenues
• Risks Relating to Challenges from any Expansion into New Markets and Ancillary Businesses
• Risks Related to Rig Move, Upgrade, Repair, Refurbishment and Construction Projects
• Risks Relating to the COVID-19 Pandemic
• Risks Related to Impact of Cybersecurity Attacks on Security and Reliability of Technology Systems
• Risks Related to the Inability to Keep Pace with Significant Technological Developments
• Risks Related to Contracts with National Oil Companies (NOCs) or their Joint Ventures May Expose the Group to Greater Risks than those Assumed for Contracts with Non-Governmental Customers
• Risks Related to Equipment Failure, Shutdowns or other Disruptions
• Risks related to Potential Business Mergers and Acquisitions Undertaken by the Group
• Risks Related to Public and Investor Sentiment Towards Climate Change, Fossil Fuels and Other ESG Matters
• Risks Related to Global Transition to Renewable or Other Alternative Energy Sources
• Risks Related to the Group’s Aspirations, Goals, Commitment Targets and Initiatives Related to Sustainability
• Risks Related to Related Party Transactions and Agreements
• Risks Related to Engagement of Directors or Senior Executives in Business Competing with the Group’s Business
• Risks Related to Dependence on Third Parties, Distributors, Manufacturers and Strategic Partners
• Risks Related to Rig Operations Being Exposed to Catastrophic Events or Acts of Terrorism Over Which the Group Has No Control
• Risks Related to Adverse Changes in Exchange Rate
• Risks Related to Collection of Receivables
• Risks Imposed by Financing
• The Group’s Ability to Generate Sufficient Cash to Service its Debt Obligations and Operations Depends on Many Factors Beyond its Control
• Risks Related to The Group Being Exposed to a Range of Financial Risks, Including Interest Rate Risk
• Risks Related to Reliance on Executive Management and Key Personnel
• Risks Related to Employee Misconduct and Errors
• Risks Related to Employing and Sponsoring Non-Saudi Employees
• Risks Related to Failure to Secure Adequate Insurance Coverage
• Risks Related to Litigation
• Risks Related to Protection of Intellectual Property Rights
• Risks Related to Potential Zakat Liability and Tax
• Risks in Connection with the Use of Accounting Assumptions, Estimates and Judgments, and the Corresponding Errors
• Risks Related to Newly Implemented Corporate Governance Rules
• Risks Related to Failure by the Audit Committee, the Nomination and Remuneration Committee to Perform their Duties as Required
• Risks Related to Lack of Experience in Managing a Listed Joint Stock Company
• Risks Related to General Economic Conditions
• Risks Related to Political Instability and Security Concerns in the Middle East Region
• Risks Relating to the Drilling Industry Being Historically Competitive, Cyclical and Subject to Intense Price Competition
• Risks Related to Changes in the Regulatory Environment
• Risks related to Unanticipated Costs Related to Compliance with Health and Safety and Environmental Laws and Regulations
• Risks Related to Non-compliance with Applicable Anti-corruption Laws or Sanctions
• Risks Related to Accidents on any of the Group’s Rigs Causing Severe Damage or Injury, Resulting in Significant Costs Being Incurred
• Risks Related to Zakat and Income Tax Calculation Mechanism Change
• Risks Related to Non-Compliance with Value Added Tax Regulations
• Risks Related to Licences and Approvals
• Risks Related to Certification of Rigs
• Risks Related to the Increase in Government Fees Applicable to Non-Saudi Employees
• Risks Related to Non-Compliance with the Saudization Requirements
• Risks Related to Compliance with the Companies Law, the Implementing Regulations and the Corporate Governance Regulations
• Risks Related to Effective Control by the Current Shareholders after the Offering
• Risks Related to Absence of a Prior Market for the Offer Shares
• Risks Related to Selling a Large Number of Shares on the Exchange
• Risks Related to Issuance of New Shares
• Risks Related to Fluctuation in the Market Price of the Shares
• Risks Related to Distribution of Dividends

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers Certified Public Accountants

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• IKTVA Excellence Award for several consecutive years