ADES expects 13% ROI, $1.1B liabilities from Shelf Drilling acquisition deal: CEO

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).