Latest news with #MohamedAbdulKhaleq
Argaam
19-05-2025
- Business
- Argaam
ADES to unveil new contract awards in coming period: CEO
ADES Holding Co.'s CEO Mohamed Abdul Khaleq said that there are a number of new contracts that will be announced sequentially in the coming period, adding that discussions on these contracts are on track. In an interview with CNBC Arabia, the top executive stated that the company signed contracts worth SAR 3.6 billion during April and May, bringing its total projects backlog to SAR 29 billion, which is the highest in the company's history and also the highest at the industry level globally. Regarding the renewal of a platform contract with Saudi Aramco for a period of 10 years, at a value of SAR 1.61 billion, the top executive said that the contract with Aramco was renewed with an increase of 20% over its previous value, noting that the company has about 33 contracts with Aramco. Aramco represents about 70% of the total backlog, which amounts to about SAR 29 billion, Kuwait Oil Company (12%), Qatar (4%), Egypt (3%), and the rest is distributed among the countries of the world. The change in the exchange rate of the Egyptian pound had no impact on the company's contracts in Egypt, ss they are in the US dollar, said Abdul Khalek, indicating that even if there are some operations carried out in Egyptian pounds, they are in accordance with the exchange rate of the Central Bank of Egypt, which gives the company a hedge against the decline of the currency. The CEO also pointed out that ADES has about SAR 11.5 billion in debt, but the contracts backlog represents about three times the debt size, which enables the company to collect about SAR 14.5 billion from them to repay debts and distribute semi-annual cash dividends. He also stressed that the company currently has no intention of issuing Sukuk because the last financing secured by the company was almost not consumed, and there is still about $3 billion remaining. Asked about the impact of reducing interest rates on the company, the CEO said that each 25-bps reduction in interest rates reflects positively on the company's profits by about SAR 15 million annually.
Argaam
06-05-2025
- Business
- Argaam
ADES backlog at SAR 26.9B, revenue likely to grow in 2025: CEO
ADES Holding Co. 's CEO Mohamed Abdul Khaleq stated that the group's backlog totaled SAR 26.9 billion on March 31, 2025, with added projects reaching SAR 148 million. In an interview with Argaam, he indicated that the added backlog includes two contracts in Nigeria for the Admarine 504 and 501 rigs, following their transfer from Saudi Arabia. He also noted that the company concluded new contracts worth SAR 2.08 billion after the end of the first quarter, including renewals in Egypt with the Egyptian General Petroleum Corporation (EGPC), a contract renewal for a jack-up offshore platform in Saudi Arabia, and a long-term contract for the Admarine 511 platform in Brazil. Commenting on Q1 performance, the CEO said that the pace of operating results remains strong, backed by increasing contributions from India, Southeast Asia, and Algeria, as well as stable performance in Egypt, where ADES is implementing a production model for obsolete fields. The top executive also highlighted that the margin stability reflects the strong performance before interest, taxes, depreciation, and amortization, despite the increase in depreciation and interest expenses to revenue. Furthermore, the revenues generated from outside the Kingdom accounted for 38.9% of topline during the first quarter, in line with ADES's global expansion strategy, he noted. Below are the details of the group's revenue by geographical region (SAR mln) Country Q1 2025 Q1 2024 Change Saudi Arabia 898.8 1105.8 (18.7%) Southeast Asia 137.5 - - Egypt 136.9 117.5 16.6 % Kuwait 109.6 152.0 (27.9%) Qatar 74.0 87.2 (15.1%) India 61.1 39.8 53.6% Algeria and Tunisia 52.1 29.7 75.4% Total 1470.1 1532.1 (4.0 %) ADES continues to leverage its flexible operating model, diversified regional and global presence, and significant financial flexibility, supporting its future outlook for continued growth by expanding into existing and new markets, said the top executive. As for capital expenditures, the CEO said that the group has allocated recurring capital expenditures for 2025 ranging between SAR 500-600 million, focused on the maintenance of operating platforms, adding that these expenses are a natural part of the business cycle and do not affect the company's ability to generate free cash flow. 'ADES was able to distribute dividends representing 60% of its H2 2024 profits, amounting to SAR 242 million, in addition to previous dividends of the same proportion,' said Abdul Khaleq. He also noted that ADES recently increased its syndicated credit facility by $3 billion, thus strengthening its financial position and its readiness to seize merger and acquisition opportunities when they arise. Concerning the outlook for the oil market, he stated that management believes that long-term fundamental supply and demand factors will continue to give an edge to the company's high-performance, in-demand fleet, especially given the high pace of bidding activity in key markets across Southeast Asia, the Middle East, and West Africa. ADES currently leads the global offshore jack-up rig sector, while also having a strong presence in the onshore drilling sector, operating 91 rigs across 12 countries, he noted. 'This achievement and expansion are not limited to numbers, but is driven by a disciplined and flexible approach, a business model that is resilient to market cycles, and equipped for growth,' said the CEO. He added that the company, upon entering new markets and continuing to improve its fleet, has been able to meet emerging challenges with remarkable resilience, paving the way for a future of sustainable growth and industry leadership. The top executive also expects demand for jack-up rigs to increase amid tight supply, resulting in commercial utilization rates in the global jack-up rig market remaining stable at around 90% during the period from 2025 to 2030. Historically, oil production levels have not been affected by oil price fluctuations, which provides a clear view of the drilling sector's performance in the medium to long term, given that drilling activity is not directly affected by oil prices but rather depends primarily on production levels, according to the top executive. Regarding his expectations for 2025, the CEO stated that the group expects a gradual improvement in revenues by the fourth quarter of 2025, with the completion of the rig commissioning process and the contribution of all contracted rigs. He expects Q1 2025 results to be the lowest of the year due to the scheduled requalification and rig transfer operations that were expected to occur during the previous period. Abdul Khaleq also confirmed the company's announced financial estimates for 2025, with EBITDA to range between SAR 3.28 -3.39 billion, with growth of 8-12% year-on-year, backed by improved rig operations, higher rig utilization rates, and the group's growing regional presence.
Argaam
25-02-2025
- Business
- Argaam
ADES CEO says int'l contracts rise to 32%
ADES Holding Co. 's CEO Mohamed Abdul Khaleq stated that international contracts accounted for 32% of the company's total backlog by the end of 2024, up from 22% in the previous year. In an interview with Argaam, he attributed this growth to ongoing efforts to diversify business operations behond Saudi Arabia. International contracts, according to the CEO, had a significant impact on ADES' Q4 2024 results. Newly secured contracts required higher daily rental rates than those in Saudi Arabia, reflecting ADES' strategic focus on global expansion. The company expanded into new markets like Nigeria and Thailand, besides acquiring two jack-up rigs from Vantage Drilling International Ltd. in Malaysia and Indonesia. Consequently, this strengthened ADES' foothold in high-growth regions and reinforced its commitment to geographical diversification, he added. Abdel Khaleq attributed the 24% year-on-year (YoY) rise in the company's Q4 2024 net profit to a 23.3% revenue hike and a 7.7% growth in EBITDA. The bottom line also reflected gains from the acquisition of Vantage Drilling's jack-up rigs, albeit the allocation of a non-cash tax provision and one-off expenses offset some of these gains. Total Q4 revenues stood at SAR 1.57 billion, with SAR 959.7 million from Saudi Arabia. Meanwhile, Kuwait generated SAR 125.54 million, while another SAR 135.58 million came from Egypt, SAR 103.54 million from Qatar, SAR 57.08 million from Algeria and Tunisia, SAR 60.23 million from India, and SAR 127.4 million from Southeast Asia, the CEO explained. On capital expenditure (capex), Abdel Khaleq said the company spent SAR 3.08 billion in 2024, including SAR 712.1 million for the Vantage-related acquisition. Recurring capex for rig maintenance reached SAR 444.1 million. In 2025, recurring capex is expected to range between SAR 500-600 million, excluding potential acquisitions or rig refurbishments. He pointed out that the company's backlog rose to SAR 28.27 billion by the end of 2024, up from SAR 27.54 billion in the year before. Despite generating SAR 6.2 billion in revenue, ADES secured SAR 7 billion in new contract awards during the year. ADES is actively bidding for multiple tenders, leveraging its global reach while focusing on high-potential markets in West Africa and Southeast Asia. The company also aims to strengthen its presence in the Middle East, the top executive highlighted. Looking ahead, ADES is expected to log an EBITDA growth of 8-12%, to range between SAR 3.28-3.39 billion. This uptrend will be driven by higher rig utilization rates and regional expansions. According to Argaam 's data, ADES' net profit surged to SAR 802.5 million in 2024, from SAR 442.1 million in 2023. The fourth-quarter bottom line neared SAR 207.1 million.
