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ADES International reveals major jump in revenues for first half

Interim results due in September will show a business that's taken a step-change following its recent acquisitions.

ADES International Holding PLC - ADES International reveals major jump in revenues for first half
First half revenue amounted to US$219.9mln

ADES International Holding PLC (LON:ADES) told investors that revenue increased significantly in the first half of 2019, thanks to contributions from its recently acquired assets.

In a statement ahead of its interim results, slated for 27 September, the oil industry services firm revealed that first half revenue amounted to US$219.9mln, which is 2.8 times higher than the US$79.7mln generated in the same period last year.

Similarly the revenue tally for the second quarter, ended 30 June, totalled US$111.3mln which marked some 2.4% growth on the preceding three months.

It ended the half with US$40.3mln, while net debt stood at US$614mln reflecting the significant investments made by the company - with funds used to upgrade existing rigs, build new rigs, and complete the Weatherford acquisition.

ADES highlighted that it expects to see improved cash flow through the second half of 2019.

Chief executive Dr Mohamed Farouk described a “strong operational performance” in the first half.

“Our results were driven by the increasing contributions from the newly acquired rigs and were further supported by the steady ramp up of utilisation rates,” Farouk said.

“We will provide further detail alongside our interim results in September.

“We expect the trend to continue into H2 2019 and as a consequence we expect our trading performance to be in line with the board's expectations for the full year, although the higher finance charges will have a modest impact on the overall outturn for the financial year.”

He added: “our integration project is progressing smoothly and management continues to focus on leveraging further synergies from the acquisitions to help maximize value.

“To that end, we have successfully completed a synergies assessment phase and are working on the implementation phase.”

Quick facts: ADES International Holding PLC

Price: 9.75 USD

Market: LSE
Market Cap: $418.86 m


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