ADES profit slips 2% to SAR 194.2M in Q1 2025

ADES Holding Co. reported a profit decline to SAR 194.2 million (excluding minority interest) in Q1 2025, compared to SAR 197.4 million in the year-earlier period.

Earnings, before minority interest, reached SAR 196.7 million for Q1 2025, compared to SAR 200.8 million in Q1 2024.

The decline was attributed to a 4% year-on-year (YoY) decrease in revenue to SAR 1.47 billion in Q1 2025. This drop is due to a temporary impact from lower operational activity, as the group is currently preparing to commence operations under new contracts.

The new contracts include the ongoing mobilization of three onshore rigs in Kuwait, in addition to offshore rigs in Nigeria, Thailand, and Brazil, which were previously operating in Saudi Arabia.

Despite the temporary dip, operational performance remains solid, supported by contributions from India, Southeast Asia, and Algeria, as well as increased contribution from the production model applied by ADES in Egypt.

In addition, the company’s revenue was affected by the increase in the ratio of depreciation and interest expenses-to-revenue, which exerted further pressure on net profit.

On the other hand, net profit margin edged up to 13.4% in Q1 2025, compared to 13.1% in Q1 2024. The margin remained steady despite the improvement in earnings before interest, tax, depreciation and amortization (EBITDA), indicating underlying strength in operational efficiency.

On a sequential basis, net earnings retreated by 6.2% from SAR 207.5 million in Q4 2024.

Total shareholders’ equity, after excluding minority interest, stood at SAR 6.41 billion by March 31, 2025, compared to SAR 6.05 billion a year earlier.

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