Latest news with #ADESHolding
Argaam
6 days ago
- Business
- Argaam
ADES expects 13% ROI, $1.1B liabilities from Shelf Drilling acquisition deal: CEO
Mohamed Farouk, CEO of ADES Holding Co., said the acquisition of Shelf Drilling Ltd. is expected to generate a 13% return on investment (ROI) over a seven-year redemption period, if the merger goes through as per the approved plan. He told Al Arabiya TV that Shelf Drilling's net liabilities amounted to $1.1 billion, financed at a 10% cost, which will be reduced by approximately 3.5%, thus recording estimated annual savings of $40 million in financing expenses and boosting the efficiency of the group's post-acquisition financial structure. Farouk also indicated that ADES expects to generate immediate revenues ranging between $450-900 million upon deal completion. These gains are bound to contribute 33-44% of operating earnings before interest, taxes, and depreciation, requiring no high working capital. He added that ADES operations currently record an annual operating rate of about $350 million, excluding the expected savings from the Shelf Drilling acquisition deal. The Saudi-listed company, according to CEO, is committed to distributing a target 60% of its 2026 profits to shareholders, in line with its dividend policy and drive towards enhancing ROI. At present, ADES is active in 19 countries across four different continents, catering to a diversified market base, with an eye to expand into new regions after the Shelf Drilling takeover. According to Argaam data, ADES International Holding Ltd., a subsidiary of ADES Holding, signed an agreement to acquire all issued and outstanding shares of Shelf Drilling, through a cash merger governed by the laws of the Cayman Islands. Under the deal, Shelf Drilling will remain a surviving entity. The transaction, slated to be closed in Q4 2025, is valued at approximately SAR 1.42 billion ($379 million).
Argaam
04-08-2025
- Business
- Argaam
ADES performance seen to accelerate in H2 2025: CEO
Mohamed Farouk, CEO of ADES Holding Co., said the group expects its performance to accelerate in the coming months as all contracted rigs become fully operational by the end of Q4 2025. Speaking to Argaam, Farouk reaffirmed the company's guidance for 2025, targeting EBITDA between SAR 3.28 billion and SAR 3.39 billion, which reflects an annual growth rate of 8% to 12%. This growth is supported by expansion in both existing and new markets, improved utilization of recently commissioned rigs, and strengthened regional presence. He highlighted that the company benefits from its flexible operating model, diversified geographical footprint, and financial agility — all of which support its ability to sustain growth in the coming period. Commenting on the financial results, Farouk explained that despite revenue growth, the drop in profits was mainly due to higher depreciation and interest expenses relative to revenue, driven by the expanded rig fleet and the commissioning of several rigs during the period. He noted that the results were in line with market expectations for Q2. The top executive added that during H1 2025, the company fully commissioned six rigs, while another six underwent preparations at various times, including two newly built rigs. These rigs fall under the six-rig contract awarded to the company in 2024. Of these, five were gradually brought online during Q2, while the sixth — which had already started operations earlier in Q2 — is currently undergoing final preparations and is expected to restart in Q3 2025. Operations in Kuwait are expected to reach full capacity by the end of Q3 2025, with 12 rigs in operation. On a geographical basis, Farouk said the company posted revenue of approximately SAR 3.05 billion in H1 2025, largely unchanged from the same period last year. Saudi Arabia led with SAR 1.82 billion in revenue, followed by Egypt with SAR 294 million, and Southeast Asia with SAR 279 million. Revenue by Geographic Region (SAR mln) Region H1 2025 H1 2024 Change Saudi Arabia 1,817.0 2,170.0 -16.3% Egypt 294.1 224.7 +30.9% Southeast Asia 279.2 6.8 +4032% Kuwait 257.8 319.0 -19.2% Qatar 174.7 152.1 +14.9% India 119.6 98.8 +21.0% Algeria & Tunisia 99.9 86.0 +16.2% Nigeria 6.6 - - Total 3,048.9 3,057.4 -0.3% Farouk pointed out that the total number of active rigs reached 73 by the end of H1 2025, compared to 77 during the same period last year. The company continued implementing its rig reactivation plans across multiple markets, including Saudi Arabia, Nigeria, Qatar, Thailand, and Egypt, while also preparing to expand operations in Thailand, Brazil, Nigeria, and Cameroon. The global oil sector continues to experience long-term balance between supply and demand, which supports demand for ADES's high-efficiency fleet amid growing tender activity across strategic regions in Southeast Asia, the Middle East, and West Africa. 'With the continued ramp-up of rig operations, we expect stronger performance in H2, in line with our reaffirmed 2025 financial guidance," the CEO said. He added that the company's financial flexibility enables it to continue capturing promising growth opportunities, enhance shareholders' equity, and advance its global expansion strategy. 'I am confident that the group's operations are ideally positioned to maintain this upward trajectory moving forward,' Farouk added.
Egypt Independent
04-07-2025
- General
- Egypt Independent
Search continues for 3 missing as Red Sea drilling rig disaster enters third day
Search and rescue efforts by specialized authorities and GUPCO teams continued for a third consecutive day in the waters of the Gulf of Suez, looking for three missing individuals from the Admarine 12 marine drilling rig. The rig capsized during towing to a new site north of the Red Sea, and despite 72 hours of intense searching, no survivors have been found. Amr Hanafy, Governor of the Red Sea, confirmed that the rig was in transit when the accident occurred in a vast and complex marine area. He noted the incident unfolded in just a few minutes, making it difficult for those on board to react or evacuate in time. Hanafy explained that specialized technical authorities are conducting an extensive investigation to determine the true causes of the accident, confirming that a dedicated committee has already begun its work and all relevant agencies continue to support the ongoing rescue and search operations. Survivors recount moments of terror During investigations, survivors recounted the terrifying moments they experienced, stating they were shocked by the rig's sudden sinking. 'We didn't expect to sink. Suddenly, the rig started to tilt, then capsize,' one survivor said. 'We found ourselves in the water within moments and held onto each other until GUPCO's rescue units arrived and pulled us from the sea.' Another added, 'We were on our way to work on a marine platform north of the Red Sea, and everything was normal until the accident happened suddenly.' Survivors mentioned that rescue units transferred them to nearby marine vessels and then to the port, where ambulances took them to hospitals for necessary treatment. They praised the quick response and professionalism of the rescue teams. Victim identification and ongoing search The Red Sea Prosecution, under the supervision of Chief Public Prosecutor Ahmed Abdel Mohsen, authorized the burial of four victims whose bodies were recovered from the accident site. This authorization came after the bodies were examined and handed over to their families for burial. The Admarine 12 marine drilling rig, owned by ADES Holding, had 30 individuals on board at the time of the accident. So far, 22 have been rescued, and four deaths have been confirmed, with search operations still ongoing for the remaining missing.
Free Malaysia Today
03-07-2025
- General
- Free Malaysia Today
4 dead after vessel capsizes in Suez Gulf, 3 still missing
The incident occurred around 130 nautical miles from the southern entrance of the Suez Canal. (EPA Images pic) CAIRO : At least four people died when a vessel capsized while being towed in the Gulf of Suez, one of Egypt's prominent Red Sea oil production sites, the vessel operator's Saudi Arabian owner, ADES Holding Company, said today. The incident occurred around 130 nautical miles from the southern entrance of the Suez Canal and has not disrupted navigation along the trade route, the Suez Canal authority chairman Osama Rabie said in a statement. Egypt's petroleum ministry yesterday said oil and gas producer Offshore Shukheir Oil Co (Osoco) reported the incident as occurring near Egypt's Gabal El-Zeit area along the Red Sea. The vessel is a jackup barge unit named Admarine 12 owned by a subsidiary of offshore drilling service provider ADES. It was carrying 30 personnel, 23 of whom were rescued, ADES said in disclosure to the Saudi Exchange. The petroleum ministry earlier misidentified the vessel as Adam Marine 12. Three ADES personnel and one contractor were killed, and rescuers are searching for the remaining three, ADES said. The vessel was operating in a concession where ADES and Osoco have partnered to drill wells. The vessel and personnel are comprehensively insured and at this stage there is no material impact on finances or guidance for the fiscal year 2025, ADES said. 'The company is working closely with local authorities and emergency services, with the safety and well-being of all personnel remaining its highest priority. A full and thorough investigation into the incident will be conducted,' ADES said.
Egypt Independent
02-07-2025
- Business
- Egypt Independent
Photos: Exclusive photos document Red Sea drilling rig disaster, four dead, several still missing
Al-Masry Al-Youm has obtained exclusive photos documenting the moment a marine drilling rig, owned by ADES Holding, capsized on Tuesday evening. The incident occurred while the rig was being towed to a new work site in Egypt's territorial waters, north of the Red Sea Governorate. The images, published by Al-Masry Al-Youm for the first time, show the Admarine 12 rig just before it completely vanished into the seabed. Initial reports indicate that 30 individuals were on board the rig, including 18 employees from ADES Holding, with the remainder being part of the towing crew and technicians. Rescue operations successfully saved 23 people, who were transported to nearby hospitals for necessary medical care. Four deaths have been confirmed, and the search continues for several missing individuals. While the causes of the rig's capsizing are still under investigation, technical sources suggest the rig was being towed from its previous location to a new operational site when it sank under as-of-yet-undetermined conditions. Minister of Petroleum and Mineral Resources, Karim Badawi, and Minister of Labor, Mohamed Gebran, extended their condolences to the families of the victims. Both ministers closely monitored the accident's developments and visited the injured survivors in hospitals to check on their conditions. Medical authorities have since authorized the discharge of 14 injured individuals whose conditions have stabilized and improved. Sources within ADES Holding confirmed that the company has formed an urgent technical committee to investigate the accident's causes and assess damages. The General Petroleum Authority and marine insurance companies have also been notified to handle the aftermath of the incident. Edited translation from Al-Masry Al-Youm
