LONDON (Alliance News) - ADES International Holding Ltd said Wednesday that its first quarter revenue decreased 7% year-on-year, but increased 15% on the last quarter of 2017.
For the three months to March 31, the oil & gas drilling and production services company posted revenue of USD41.2 million, down from USD48.2 million recorded in comparative year ago quarter. In the fourth quarter of 2017, the company posted revenue of GBP38.6 million.
"Profitability margins are broadly in line with the group's historical margins," the company said.
The increase in oil prices will improve the company's global supply-demand dynamics with ADES expecting an "upward trajectory in day rates and tendering activity".
Chief Executive Officer Mohamed Farouk said the company remains confident it will "maintain its growth trajectory" for the remainder of the year. ADES remains confident that 2018 results will be in line with management's expectations.
In a separate statement on Wednesday, ADES said it completed the acquisition of three operating offshore jack-up rigs in the Arabian Gulf from subsidiaries of Nabors Industries Ltd.
The total purchase price amounted to USD83 million, payable in a cash and share combination. Cash will represent 75% of the deal with new ADES shares covering the remaining 25%.
ADES said the acquisition is expected to add USD60 million to its revenue, while maintaining the group's margin. The acquired rigs have been renamed to Admarine 655, Admarine 656 and Admarine 657.
Shares were trading 1.1% lower at 13.75 pence each.