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ADES wins huge contract from TotalEnergies in Qatar

The Clap

ADES Holding Company (2382), a global leader in providing onshore and offshore drilling services, has won a massive contract from the global oil giant TotalEnergies. This is for operating an offshore drilling platform in Qatar, worth QAR 350 million (USD 93.3 million).

The Breakdown

ADES indicated that the award letter from the French company includes a mandatory period of one year, with an option to extend for an additional 18 months.

It also mentioned that operations are expected to commence in H2-24, with the Saudi company utilizing one of its offshore drilling units from its fleet.

So What

The contract will enable ADES to maintain its market share in Qatar by operating three drilling platforms. This comes after relocating its “Emerald Driller” jack-up rig to Indonesia, expected to be completed during the second half of the current year.

Some Context

Last year witnessed an increase in the net profits of the Group to SAR 452 million. This is compared to SAR 398 million in 2022. Its revenues also rose by 75.6% YoY, reaching approximately SAR 4.3 billion.