Saudi Drilling Firm ADES Expands Into Brazil With USD 85.1m Charter
The USD 85.1 million charter agreement marks a significant expansion in ADES' Latin American operations.
Saudi exploration service provider ADES Holding Co. has expanded into the Brazilian market through a USD 85.1 million charter agreement with Luxembourg's Constellation Oil Services Holding. This deal will deploy ADES' jackup rig, Admarine 511, for a drilling contract with Petrobras, Brazil's state-owned energy giant.
The agreement underscores ADES' strategy to enter new markets via alternative contracting models. The charter is set to last 38 months, although it includes an optional 472-day extension that could take the total contract term to 4.5 years. The rig is currently being prepared at the Arab Shipbuilding and Repair Yard in Bahrain and is expected to begin operations in Brazil in the final quarter of 2025.
CEO Mohamed Farouk highlighted the strategic importance of the deal in boosting ADES' global footprint and strengthening its financial position with long-term cash flow visibility. The charter is estimated to add USD 85.1 million to ADES' backlog, with the majority of revenue directly contributing to ADES' profitability. Farouk also asserted that strategic importance the Charter model, allowing for a seamless entry into the Brazilian market while maximising profit.
ADES also reported a strong financial performance in 2024, recording an 80.54% increase in net profit from SAR 452.07 million in 2023 to SAR 816.19 million. Whilst revenues surged by 43.1% to SAR 6.19 billion from SAR 4.33 billion, and earnings per share grew from SAR 0.59 to SAR 0.73.
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