Offshore drilling market to see strong pickup in demand: ADES CEO

Mohamed Farouk, CEO of ADES Holding Co., elucidates the significant potential of the local offshore drilling market

Mohamed Farouk, CEO of ADES Holding Co., said the offshore drilling market is expected to witness a notable increase in demand in the coming period, with global rig utilization already exceeding 90%, even before Saudi rigs return to service.

Speaking to Argaam, the CEO explained that the expected supply shortage will create favorable pricing conditions, with day rates likely to rise once Saudi rigs resume operations in 2026.

He added that ADES’ strategic position enables it to capitalize on this upcycle, which will positively impact the company’s 2026 revenue.

The Admarine 501 rig will begin operations under the Cameroon contract once its current six-month term in Nigeria concludes, providing visibility for up to two years. Both Admarine 501 and Admarine 510 are already under contract, he added, noting that the resumption of these rigs further strengthens the company’s overall outlook for the coming period.

Commenting on the company’s third-quarter results, the CEO pointed out that about 81% of the company’s topline came from offshore drilling operations, while onshore drilling accounted for the remaining 19%.

He added that Saudi Arabia contributed the most to revenues during the first nine months of 2025, as follows: 

The CEO noted that the 7.8% year-on-year (YoY) growth in net profit was driven by higher contributions from offshore drilling operations, as well as improved margins from rigs deployed to new locations. This reflected the group’s continued execution of its growth strategy and higher rig utilization.

He added that ADES continues to make solid progress toward its 2025 operational and financial goals, supported by the ramp-up of newly deployed rigs, the successful renewal of key long-term contracts, and strengthened presence across strategic global markets.

Based on this performance, management expects the full-year 2025 EBITDA to reach the upper limit of its previously announced guidance range of SAR 3.28-3.39 billion, driven by the full contribution of rigs deployed earlier in the year, higher utilization rates across key markets, and continued operational excellence across its global platform.

According to Argaam data, ADES reported a net profit of SAR 597.3 million (after minority interest) for the first nine months of 2025, compared to SAR 595.5 million in the same period last year. The third-quarter profit rose by about 8% YoY to SAR 214.6 million.