ADES eyes 50% revenue generation from outside Saudi by 2025: CEO

The company aims to generate approximately 50% of its revenues from Saudi Arabia, 20% from GCC countries, and 30% from the rest of the world by 2025, which is in line with its global expansion and diversification strategy, he said.

ADES' market share in the Southeast Asia region rose to 12% of the total rigs and platforms. This included five rigs, excluding three operating in India.

Abdul Khaleq stated that the company's strategy is to expand its presence in Southeast Asia and West Africa, driven by their significant activity in oil exploration.

ADES fleet comprises 51 offshore rigs, the largest globally, said the CEO. He said that nine of 31 rigs suspended for eight drilling companies in the Kingdom successfully secured work elsewhere.

ADES operated four of these nine rigs within a year, showcasing its flexibility and robust business model in less than a year.

The offshore jack-up drilling contract in Thailand is not a new acquisition, the CEO said, adding it is one of the rigs previously decommissioned by Aramco.

Abdul Khaleq pointed out that the company's contract backlog exceeded SAR 28 billion in 2024, as a total of SAR 6.7 billion is expected to be recognized in 2025. By 2025-end, contract backlog is projected to surpass SAR 28 billion, based on market expectations.

He announced that the company targets to maintain its 60% dividend payout ratio in the second half of 2024, mirroring the distribution level achieved in the first half.

With a robust market outlook, ADES expects stronger profits in the latter half of the year than the first, promising attractive returns for shareholders, Abdul Khaleq said.

According to data compiled by Argaam, ADES Holding Co. received a letter of award from PTTEP Energy Development Co. Ltd. (PTTEP) for an offshore jack-up drilling contract in the Gulf of Thailand, with an estimated backlog of SAR 1.035 billion.

The award is for a five-year confirmed period plus an optional three-year extension, and will see the deployment of the ADMARINE 503, a sister rig to the ADMARINE 502, which began operations in Thailand in the third quarter of 2024.