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Drilling pick-up boosts revenues at ADES International

Work in Saudi Arabia and Algeria boosted the first half
picture of oil rig workers
Revenues rose strongly in the first half

Good utilisation rates on its oil rigs helped ADES International PLC (LON:ADES) lift first half revenue by almost 46%

The Egypt-based driller, which joined London’s main market in May, reported revenues of US$87.8mln in the half year to June.

A ramp-up of operations in the Kingdom of Saudi Arabia (KSA), the start of drilling by ADES 3 in Algeria and the introduction of Mobile Offshore Production Unit (MOPU) services all helped boost income it said.

Most of ADES revenue stems from Egypt and a boost from the devaluation of the Egyptian pound lifted underlying profits [adjusted EBITDA] to US$45mln (US$31.6mln).

Listing in London cost US$4.6mln, which meant net profit dropped 6.0% to US$17.3mln. Cash balances were US$163.5mln with net debt of US$65.6mln.

Orders on the books were worth US$430mln and management said a number of these tenders should close during the second half with revenues in 2018.

The second half’s performance will be similar to the first half.

Mohamed Farouk, chief executive, added: “Our sustained operational performance and exemplary safety performance with an RIFR of 0.45 has allowed us to deliver strong financial results and stands as a testament to the success of our business model.

“Our revenue grew by 46% year-on-year while maintaining our standard low-cost base, resulting in an EBITDA margin of 51% highlighting the continued activity in development and production operations in the geographies in which we operate.”

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