Latest news with #ADESHoldingCo.
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.
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.
Argaam
09-02-2025
- Business
- Argaam
ADES wins contract in Nigeria; redeploys all suspended rigs
ADES Holding Co. announced that its jackup drilling unit, 'Admarine 501', has been awarded a contract by Nkuku Ikon Petroleum Development Co. for offshore drilling operations in Nigeria. In a statement to Tadawul, the company said the charter contract was signed with its in-country partner, Valiant, estimated at SAR 45 million ($12 million). This represents a percentage of the total contract value between Nkuku and Valiant, which is forecast at SAR 78.4 million ($21 million). The new contract marks the final redeployment of the company's rigs suspended in Saudi Arabia. The Admarine 501 drilling unit will be jointly operated by ADES and an in-country partner under a charter structure, similar to the previous award for Admarine 504. The contract includes a firm scope to drill two wells and an option for two additional wells with a total estimated duration (firm + option) of 180 days. Operations are expected to commence in Q2 2025, ADES stated.
