Latest news with #ADES
Asharq Al-Awsat
24-05-2025
- Business
- Asharq Al-Awsat
Saudi Energy Firms Post $26 Billion in Q1 Profits
Saudi Arabia's listed energy companies recorded a combined net profit of SAR 97.76 billion ($26.06 billion) in the first quarter of 2025, marking a 4% decline from the SAR 101.78 billion ($27.14 billion) reported during the same period last year. The dip was primarily driven by a 4.63% drop in profits from industry giant Saudi Aramco. Despite the overall decrease, the sector's performance was supported by increased sales volumes across gas, refined and petrochemical products, and integrated logistics services. Higher profit margins were also achieved due to relatively stable operations, improved global shipping rates, and lower financing costs. The sector includes seven publicly listed companies: Saudi Aramco, Bahri, ADES, Aldrees, Arabian Drilling, Al-Masafi, and Petro Rabigh. According to financial disclosures on the Saudi Stock Exchange (Tadawul), all companies in the sector posted profits in Q1 2025, with the exception of Petro Rabigh, which significantly reduced its losses by 49.4%. Saudi Aramco led the sector with SAR 97.54 billion in profits, despite a slight year-on-year drop from SAR 102.27 billion. Bahri followed, reporting a 17.64% increase in profits to SAR 532.82 million, up from SAR 453 million in Q1 2024. ADES secured third place with SAR 196.7 million in net profits, reflecting a modest 2.07% decrease from the SAR 200.85 million reported in the same quarter last year. Aldrees posted the highest growth rate in the sector, with profits soaring by 29.3% to SAR 100.1 million, compared to SAR 77.4 million in Q1 2024. Commenting on the quarterly results, Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, told Asharq Al-Awsat that the energy sector remains highly profitable, with over SAR 97 billion in earnings underscoring its strength and vital role in the Saudi economy. He attributed Aramco's decline to lower global oil prices, reduced production in line with OPEC+ recommendations, and increased operating and capital expenditures. Mohamed Hamdy Omar, CEO of echoed this view, describing Aramco as the sector's 'primary engine.' He noted that falling global oil prices, due to weakened Chinese demand, rising trade tensions, and adjustments in OPEC+ production, negatively impacted revenues across the sector. He also pointed to rising operating costs as a pressure on profit margins, despite ongoing efforts to boost operational efficiency.
Trade Arabia
06-04-2025
- Business
- Trade Arabia
Saudi group ADES signs charter agreement for Brazil project
Saudi-based ADES Holding Company has announced that it has entered into a 4.5 year tenor charter agreement with Luxembourg-based Constellation Oil Services to execute a premium jackup rig, Admarine 511 contract for Petrobras in Brazil. A world-leading provider of jackup and land rigs to the oil and gas industry, ADES has over 85 drillings rigs in operation across 7 countries. This agreement marks ADES' entry into the Brazilian market, further expanding its global footprint in Latin America through innovative and differentiated business models, said the group in its filing to Saudi bourse Tadawul. With Constellation being responsible for operating the rig in Brazil, the majority of the charter revenue for ADES will be reflected on the Group's ebitda and profitability. The contract duration is for 38 months, with an optional extension of 472 days (16 months), bringing the potential total term to 4.5 years.
CairoScene
05-04-2025
- Business
- CairoScene
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.
Arab News
03-04-2025
- Business
- Arab News
Saudi drilling firm ADES enters Brazil with $85.1m charter agreement
RIYADH: Saudi exploration service provider ADES Holding Co. has entered the Brazilian market through an $85.1 million charter agreement. The deal, which was made with Luxemborg's Constellation Oil Services Holding, will use ADES' jackup rig, Admarine 511, to support a drilling contract with Petrobras, Brazil's state-owned energy giant. The agreement marks a significant expansion of ADES' Latin American operations and underscores the company's strategy of entering new markets through alternative contracting models. The charter, which has a duration of about 38 months, includes an optional 472-day extension that could bring the total contract term to 4.5 years. The Admarine 511 rig is currently undergoing preparations at the Arab Shipbuilding and Repair Yard in Bahrain ahead of deployment, with drilling operations in Brazil expected to commence in the fourth quarter of 2025. CEO of ADES, Mohamed Farouk, commented on the new agreement, saying: 'We are excited to enter the Brazilian market through this strategic Charter with Constellation to support Petrobras, Brazil's national oil company.' Farouk added: 'This agreement not only expands our global footprint but also enhances our business sustainability with a long-term contract that strengthens our backlog and provides extended cash flow visibility.' The company estimates the additional backlog from the charter to be SR319 million ($85.1 million), including mobilization and demobilization fees. ADES noted that while Constellation will operate the rig locally, the charter structure ensures that a majority of the revenue generated will contribute directly to ADES' profitability. Listed on the Saudi stock market, ADES saw a 1.23 percent drop in its share price to SR16.12 as of 12:30 p.m. Saudi time. The deal comes on the back of strong financial performance by ADES Holding in 2024, reflecting the group's continued growth trajectory. The firm recorded an 80.54 percent increase in net profit, reaching SR816.19 million, up from SR452.07 million in 2023. Revenues also surged by 43.10 percent year-on-year to SR6.19 billion, compared to SR4.33 billion the previous year. Earnings per share rose to SR0.73 in 2024, up from SR0.59 in 2023, underscoring improved profitability and operational efficiency. Farouk further stated that the firm selected the charter model to navigate Brazil's operational landscape more effectively. 'Recognizing the unique challenges of each market, ADES strategically opted for a Charter model that facilitates a seamless entry into Brazil while maximizing profitability and delivering higher returns for our shareholders,' Farouk added.
Argaam
03-04-2025
- Business
- Argaam
ADES signs agreement with Constellation to execute Petronas contract in Brazil
ADES Holding Co. signed a drilling charter agreement for its premium jackup rig, Admarine 511, with Constellation to execute a contract with Petrobras in Brazil. The total additional backlog for the charter is estimated at SAR 319 million ($85.1 million), including mobilization and demobilization, the company said in a filing to Tadawul. The agreement has a confirmed term of 1,143 days (nearly 38 months), with an optional extension of 472 days (nearly 16 months), bringing the potential total term to 4.5 years. Admarine 511 is currently at the ASRY yard in Bahrain undergoing contract preparation for the Brazil campaign, which is expected to commence in the fourth quarter of 2025. This agreement marks ADES entry into the Brazilian market, further expanding its global footprint in Latin America through innovative and differentiated business models With Constellation being responsible for operating the rig in Brazil, the majority of the Charter revenue for ADES will be reflected on the Group's EBITDA and profitability, the statement added.
