ADES.L Share News (ADES)

LONDON (Alliance News) - ADES International Holding Ltd on Monday reported increases in profit and revenue for 2017, due to high utilisation of the group's oil rigs and a full-year impact of operations by rigs in Saudi Arabia.

The Dubai-based oilfield services firm reported pretax profit for the year at USD43.4 million, up from USD41.3 million the year before, with double-digit revenue growth of 18% to USD157.6 million from USD134.1 million and an average utilisation rate of its drilling rigs of 78%.

Regionally, ADES saw its biggest success in Saudi Arabia, where revenue more than quadrupled to USD53.7 million from USD11.6 million, representing the impact from its three offshore rigs, Admarine 261, Admarine 262, Admarine 266. The group expects further increases from the region, especially with upgrade works on two of the rigs completed in the year.

However, Egypt revenue fell by 24% to USD82.3 million from USD108.5 million, due to scheduled upgrade projects performed on rigs Admarine II and Admarine VI during 2017.

ADES International said it expects organic growth in 2018 from existing operations, through the realisation of several strategic efforts including the starting of new contracts and securing new tenders across the regions as well as from the Nabors acquisitions.

"ADES' continued success is driven by our three-pillar growth strategy of replenishing our backlog; actively participating in tendering activities to expand our footprint and increase market share; and targeting smart and value accretive acquisition opportunities," said Chief Executive Officer Mohamed Farouk.

"2017 saw the company make significant progress on all three fronts, having been awarded new contracts while securing renewals and extensions for existing contracts; participated in tenders across existing and new markets; and continued to grow our fleet, with the recent signing of a PSA to acquire three operating offshore jack-up rigs in the Arabian Gulf," Farouk added.

Shares in ADES International were down 2.3% at USD14.65 on Monday.