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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.
|
Revenue by Geographic Region (SAR mln) |
|||
|
Region |
H1 2025 |
H1 2024 |
Change |
|
Saudi Arabia |
1,817.0 |
2,170.0 |
-16.3% |
|
Egypt |
294.1 |
224.7 |
+30.9% |
|
Southeast Asia |
279.2 |
6.8 |
+4032% |
|
Kuwait |
257.8 |
319.0 |
-19.2% |
|
Qatar |
174.7 |
152.1 |
+14.9% |
|
India |
119.6 |
98.8 |
+21.0% |
|
Algeria & Tunisia |
99.9 |
86.0 |
+16.2% |
|
Nigeria |
6.6 |
- |
- |
|
Total |
3,048.9 |
3,057.4 |
-0.3% |
Farouk pointed out that the total number of active rigs reached 73 by the end of H1 2025, compared to 77 during the same period last year. The company continued implementing its rig reactivation plans across multiple markets, including Saudi Arabia, Nigeria, Qatar, Thailand, and Egypt, while also preparing to expand operations in Thailand, Brazil, Nigeria, and Cameroon.
The global oil sector continues to experience long-term balance between supply and demand, which supports demand for ADES’s high-efficiency fleet amid growing tender activity across strategic regions in Southeast Asia, the Middle East, and West Africa.
“With the continued ramp-up of rig operations, we expect stronger performance in H2, in line with our reaffirmed 2025 financial guidance," the CEO said. He added that the company's financial flexibility enables it to continue capturing promising growth opportunities, enhance shareholders' equity, and advance its global expansion strategy.
“I am confident that the group’s operations are ideally positioned to maintain this upward trajectory moving forward,” Farouk added.
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