ADES performance seen to accelerate in H2 2025: CEO

Mohamed Farouk, CEO of ADES Holding Co.

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.