v3.26.1
REPORTABLE SEGMENTS
 6 Months Ended
Jun. 30, 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

 

             
   For the three-month
period ended		   For the six-month
period ended		 
(in US$ thousands)  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Reportable Segment:                    
Production Services  $329,732   $205,061   $570,777   $393,148 
Drilling and Evaluation Services   191,020    122,307    354,561    237,322 
Total external revenue  $520,752   $327,368   $925,338   $630,470 

 

Long-lived assets

 

       
   As of 
(in US$ thousands)  June 30, 2026   December 31, 2025 
Reportable Segment:          
Production Services  $263,369   $222,306 
Drilling and Evaluation Services   206,171    186,738 
Total Reportable Segments   469,540    409,044 
Unallocated assets   61,145    56,410 
Total long-lived assets  $530,685   $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

 

             
   For the three-month
period ended		   For the six-month
period ended		 
(in US$ thousands)  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Reportable Segment:                    
Production Services  $60,232   $22,696   $92,969   $42,725 
Drilling and Evaluation Services   21,703    20,714    39,885    36,861 
Total Reportable Segments   81,935    43,410    132,854    79,586 
Unallocated expenses   (17,094)   (16,319)   (31,978)   (31,554)
Total operating income   64,841    27,091    100,876    48,032 
Interest expense, net   (7,038)   (8,562)   (13,581)   (16,846)
Other income, net   1,115    940    2,564    1,999 
Income before income tax  $58,918   $19,469   $89,859   $33,185 

 

 

Unallocated expenses for the three-month and six-month periods ended June 30, 2026, and June 30, 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:

  

             
   For the three-month
period ended		   For the six-month
period ended		 
(in US$ thousands)  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Production Services:                    
Compensation  $55,976   $47,045   $105,069   $94,072 
Cost of products, materials, and supplies   124,003    65,449    206,563    118,466 
Transport and rental   43,367    29,334    77,663    57,649 
Depreciation and amortization   17,801    19,817    33,941    40,048 
Other   28,353    20,726    54,572    40,189 
Total   $269,500   $182,371   $477,808   $350,424 

 

   For the three-month
period ended		   For the six-month
period ended		 
(in US$ thousands)  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Drilling and Evaluation Services                    
Compensation  $50,702   $35,848   $97,406   $72,505 
Cost of products, materials, and supplies   28,707    17,434    51,873    35,366 
Transport and rental   54,071    23,030    95,545    45,316 
Depreciation and amortization   14,018    11,646    27,138    23,051 
Other   21,819    13,629    42,714    24,222 
Total    $169,317   $101,587   $314,676   $200,460 

 

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

 

Revenue by geographic area

  

             
   For the three-month
period ended		   For the six-month
period ended		 
(in US$ thousands)  June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 
Geographic Area:                    
Domestic (BVI)  $-   $-   $-   $- 
MENA   518,319    324,699    921,124    626,157 
Rest of World   2,433    2,669    4,214    4,313 
Total revenue  $520,752   $327,368   $925,338   $630,470 

 

Long-lived assets by geographic area

 

       
   As of 
(in US$ thousands)  June 30, 2026   December 31, 2025 
Geographic Area:          
Domestic (BVI)  $-   $- 
MENA   523,378    457,124 
Rest of World   7,307    8,330 
Total long-lived assets  $530,685   $465,454