v3.26.1
REPORTABLE SEGMENTS
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS

10. REPORTABLE SEGMENTS

 

The Company determines its operating segments using the management approach, under which its Chief Executive Officer, as the Company’s chief operating decision maker, regularly reviews financial information to allocate resources and assess performance. The Company has identified two reportable segments, Production Services and Drilling and Evaluation Services, which provide a range of oilfield services to oil and natural gas customers across the well lifecycle. Segment performance is evaluated primarily based on revenue and segment operating income (loss), excluding corporate-level expenses such as overhead, share-based compensation, and transaction-related costs. The Company’s operations are primarily located in the MENA region.

 

 

Revenue from operations

 

   March 31, 2026   March 31, 2025 
  

For the three-month

period ended

 
(in US$ thousands)  March 31, 2026   March 31, 2025 
Reportable Segment:          
Production Services  $241,045   $188,087 
Drilling and Evaluation Services   163,541    115,015 
Total external revenue  $404,586   $303,102 

 

Long-lived assets

 

   March 31, 2026   December 31, 2025 
   As of 
(in US$ thousands)  March 31, 2026   December 31, 2025 
Reportable Segment:          
Production Services  $223,324   $222,306 
Drilling and Evaluation Services   197,832    186,738 
Total Reportable Segments   421,156    409,044 
Unallocated assets   54,998    56,410 
Total long-lived assets  $476,154   $465,454 

 

Unallocated assets mainly comprise buildings and leasehold improvements in the countries which support both segments in the normal course of business.

 

Total segment operating income

 

   March 31, 2026   March 31, 2025 
  

For the three-month

period ended

 
(in US$ thousands)  March 31, 2026   March 31, 2025 
Reportable Segment:          
Production Services  $32,737   $20,029 
Drilling and Evaluation Services   18,182    16,147 
Total Reportable Segments   50,919    36,176 
Unallocated expenses   (14,884)   (15,235)
Total operating income   36,035    20,941 
Interest expense, net   (6,543)   (8,284)
Other income, net   1,449    1,059 
Income before income tax  $30,941   $13,716 

 

Unallocated expenses for the three-month periods ended March 31, 2026, and March 31, 2025, respectively, mainly include corporate selling, general, and administrative expenses (inclusive of amortization), offset in small part by a portion of these costs that are allocated to the reportable segments. As described elsewhere, corporate selling, general, and administrative expenses are primarily comprised of payroll and compensation costs for headquarters’ employees, professional and legal expenses relating to audit firms, consulting firms and legal counsel, and depreciation charges on headquarters’ offices and leasehold improvements.

 

Significant segment expenses, which represent the difference between segment revenue and pre-tax segment income, consist of the following:

 

   March 31, 2026   March 31, 2025 
   For the three-month period ended 
(in US$ thousands)  March 31, 2026   March 31, 2025 
         
Production Services:          
Compensation  $49,093   $47,025 
Cost of products, materials, and supplies   82,560    53,017 
Transport and rental   34,296    28,316 
Depreciation and amortization   16,140    20,232 
Other   26,219    19,462 
Total  $208,308   $168,052 

 

   March 31, 2026   March 31, 2025 
   For the three-month period ended 
(in US$ thousands)  March 31, 2026   March 31, 2025 
         
Drilling and Evaluation Services:          
Compensation  $46,704   $36,658 
Cost of products, materials, and supplies   23,166    17,932 
Transport and rental   41,474    22,287 
Depreciation and amortization   13,120    11,405 
Other   20,895    10,592 
Total  $145,359   $98,874 

 

 

Other segment expenses include mobilization, occupancy, professional, and other costs.

 

Revenue by geographic area

 

   March 31, 2026   March 31, 2025 
  

For the three-month

period ended

 
(in US$ thousands)  March 31, 2026   March 31, 2025 
Geographic Area:          
Domestic (British Virgin Islands)  $     -   $- 
MENA   402,805    301,458 
Rest of World   1,781    1,644 
Total revenue  $404,586   $303,102 

 

Long-lived assets by geographic area

 

   March 31, 2026   December 31, 2025 
   As of 
(in US$ thousands)  March 31, 2026   December 31, 2025 
Geographic area:          
Domestic (British Virgin Islands)  $      -   $- 
MENA   468,347    457,124 
Rest of World   7,807    8,330 
Total long-lived assets  $476,154   $465,454