ADES contracts with Aramco range between 3-10 years: CEO

Mohamed Farouk Abdul Khaleq, CEO of ADES Holding 

ADES Holding Co.’s contracts with Saudi Arabian Oil Co. (Saudi Aramco) have maturities ranging from three to 10 years, CEO Mohamed Farouk said.

To date, there is no notification from Saudi Aramco regarding any change in plans, Farouk told El Sharq TV.

If there are any developments, the market will be notified directly, he added.

He explained that there are a limited number of offshore rigs worldwide—about 400 units. Over the past two years, 50 rigs were transferred to the GCC region. Of those, more than 70% were transferred to Saudi Arabia due to demand. This led to absence in some other markets.

Farouk stressed that the company's main orientation is to serve the Saudi market and Saudi Aramco, however, ADES runs operations in other GCC countries, India and Indonesia. This has allowed ADES to gain influence in other markets.

According to data compiled by Argaam, the company confirmed today that, to date, there have been no changes or updates regarding the activity of its current fleet that might affect its financial performance.

ADES shares went limit-down during the past two sessions, closing at SAR 19.96 on Jan. 31.

The stock is up 1% today, Feb. 1, amid active trading.