ADES Holding, based in Saudi Arabia, saw its net profit drop by 2% in the first quarter, reaching $52.4 million
Saudi oil and gas drilling company ADES Holding Company announced on Monday that its net profit dropped by 2.1% in the first quarter of 2025, reaching \$52.4 million (SAR 196.6 million), according to a report on the Saudi Exchange.
First-quarter performance
The company’s revenue dropped by 4% to $392 million (SAR 1.47 billion), mainly because of less activity as the company prepares for new projects and contracts.
These new projects include the ongoing deployment of three onshore rigs in Kuwait and the moving of offshore rigs to Nigeria, Thailand, and Brazil, three of which were previously working in Saudi Arabia.
However, the revenue drop was partly balanced by higher usage of rigs in Southeast Asia, India, Algeria, and the purchase of two offshore rigs in Indonesia and Malaysia from Vantage in the fourth quarter of 2024.
Despite a higher net profit margin (13.4% compared to 13.1% last year), the net profit decreased. Operational profit fell by 3.7% to $126.8 million (SAR 475.6 million).
ADES Holding’s EBITDA for the first quarter increased by 8.4% to $217.6 million (SAR 816.3 million), and the EBITDA margin rose to 55.5% from 49.1%.
“Commercially, we strengthened our position in key markets with contract renewals and entered new regions, making the most of our global platform,” said ADES Holding CEO Mohamed Farouk.
Last month, ADES announced a ten-year contract renewal with Aramco for one of its offshore rigs, which was among the six suspended rigs that were previously working in Saudi Arabia.
Recent acquisitions
In September, ADES agreed to buy Topaz, a premium jack-up rig, for $105 million (SAR 393.8 million). This rig was working in the Malaysia-Thailand Joint Development Area (JDA) under Vantage Drilling.
ADES also bought a stake in Rig Finance Ltd. (RFL) for $85 million (SAR 318.8 million). RFL owns the premium jack-up rig Soehanah, which was contracted in Indonesia under Vantage.
The purchase of Topaz and Soehanah will help strengthen ADES’ fleet in India and Southeast Asia.
Published: 6th May 2025
For more article like this please follow our social media Facebook, Linkedin & Instagram
Also Read:
Saudi Arabia’s Q1 budget deficit rises to $15.7B due to oil dip
AD Ports Group signs 50-year deal to develop Egypt’s KEZAD East
Syria to sign deal with Türkiye for electricity import via 400kV line
