Ades Holding Company (2382) announced the renewal of two onshore rig contracts in Saudi Arabia, valued at SAR 946 million.
Details
Ades noted that oil giant Aramco granted the extension of “Ades 13” and “Ades 14” for ten years.
So what
Ades, one of the world’s leading drilling and production services providers, noted that the relatively long renewal period will enhance the sustainability of its accumulated business. It also supports management’s optimistic outlook for its business future in the Kingdom.
Some Context
The company’s CEO Mohamed Farouk noted that the two rigs have been operational in the kingdom for the past five years.
Ades 13 and 14 have had satisfactory operational performance and outstanding safety ratings, he noted, adding that the recently inked renewal contracts will provide the group with “a clearer outlook” for long-term revenue generation.
Impact of Aramco
Ades’ net profits surged approximately 90% YoY from April to June, to record more than SAR 202 million.
This comes thanks to higher revenues from KSA reflecting the contribution from the 19 rigs of the Aramco mega project, compared to contributions from only seven rigs in Q2, 2023.
The company’s net profits reached some SAR 403 million during the first half of this year, marking a 106% YoY increase.
