ADES CEO: Rig suspensions impact temporary; offshore drilling still tight

30/03/2026 Argaam Special
Mohamed Farouk, CEO atADES Holding Co.

Mohamed Farouk, CEO at ADES Holding Co.

Mohamed Farouk, CEO at ADES Holding Co., said fewer than 10 of the group’s offshore rigs in the GCC were recently suspended due to regional tensions, describing the impact as short-term based on current visibility.
 
He told Argaam ADES remains focused on safeguarding personnel and assets, while maintaining close coordination with clients and stakeholders to ensure operational readiness.
 
Farouk said the group’s fleet —123 rigs across 20 countries—and business model help cushion short-term disruptions.
 
On financial performance, the CEO said Q4 2025 revenue rose 26% year-on-year (YoY), driven by offshore expansion, disciplined implementation of the growth strategy, and deployment of rigs across existing and new markets.
 
Growth was further aided by the integration of Shelf Drilling, strengthening ADES’ position in core markets and enabling entry into Angola, Italy, Norway, the UK, the Netherlands, and Vietnam.
 

He added that higher profit margins reflect the scalability of ADES’ business model versus regional peers, backed by improved offshore contribution, and operating efficiency, along with cost discipline.

 

The Shelf Drilling acquisition also enhanced ADES’ commercial standing with national and international oil companies, broadened its asset base, and improved its ability to influence supply-demand dynamics across key markets, while adding technical expertise to its operating platform.

 

Farouk said the offshore drilling market remains structurally tight, with global jack-up utilization above 90% and limited new supply. The gradual return of suspended rigs in Saudi Arabia is expected to support activity levels and pricing momentum.

 

Earnings visibility is strong in 2026, underpinned by a record backlog, expanded international presence post-acquisition, improving fleet utilization, and increasing contribution from recently deployed rigs.

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