"We delivered a strong operational performance in the first quarter of the year, significantly accelerating revenue growth which increased by almost threefold compared to Q1 2018,” said Dr Mohamed Farouk, ADES chief executive. “Our results were supported by the steady ramp up of utilisation rates and the increasing contribution from the 2018 acquisitions.”
The first quarter results statement, the first since ADES acquired US$288mln worth of rigs from Weatherford International, revealed revenue of US$108.7mln, up from US$41.2mln in the comparative period of 2018 and US$79.7mln for the whole of the first half last year.
ADES added that its margins were in line with expectations, and said it had US$1.5mln of backlog at the end of March.
The company noted that integration of the former Weatherford rigs - located in Saudi Arabia, Algeria, Kuwait and Iraq - continues to be ‘on-track’.
The firm said it has renewed six contracts in Saudi Arabia for the acquired rigs, with each extended for three years, and it has landed two additional seven year contracts in the kingdom for new-build rigs.
The company anticipates ‘sequential progress’ through the second quarter and highlighted that it continues to see the group’s trading ‘in line with expectations’ for the full year.
“Our focus remains on extracting synergies and properly integrating the recently acquired rigs, tendering activity and maintaining excellent customer service and asset utilization,” Farouk added.
“ADES' growing order backlog combined with improving end markets and higher utilisation rates provide significant growth potential and visibility, underpinning our confidence for 2019 and beyond."