LONDON (Alliance News) - ADES International Holding Ltd said Thursday that it is on track to meet full year expectations after a "strong" third quarter.
The Middle East and North Africa focused oil and gas drilling and services provider recorded revenue of USD127 million for the nine months to September 30, a 7% increase on the same period last year.
Third quarter revenue totaled USD47 million, up 23% on the second quarter and 52% on the third quarter last year. Profit margins in the quarter were in line with the first half. Year-to-date utilisation rate increased to 83% from 80% the year before.
The company's cash and cash equivalents at September 30 stood at USD186 million, with net debt of USD204 million.
"ADES has delivered a strong quarter and is performing well in the second half of 2018 based on higher utilisation rates and the positive impact of the recent rig acquisitions from Nabors Industries," said Chief Executive Mohamed Farouk.
"I'm very pleased with the progress we are making against our strategic objectives. When combined with the recently acquired assets from Weatherford, our current cumulative backlog has reached USD1 billion. We have increasing confidence in delivering material growth into 2019, which is underpinned by our significant and growing backlog."
In 2017, ADES International reported a pretax profit of USD43.4 million on revenue ofUSD157.6 million, with average utilisation rate of its drilling rigs of 78%.
Shares in ADES International were untraded Thursday but last closed at USD14.10 each.