RIYADH: Oil drilling firm ADES Holding Co. has halted 10 rigs within the Gulf region due to the Iran war, which has led some regional producers to reduce oil supplies, CEO Mohamed Farouk said in an interview with Asharq TV.
The company had announced last week that it had suspended operations on some of its offshore rigs without disclosing the number at the time.
The development comes against a backdrop of heightened geopolitical uncertainty in the Gulf, where escalating conflict involving the US, Israel and Iran has disrupted energy operations and intensified concerns over the security of key supply routes such as the Strait of Hormuz.
ADES operates in 20 countries and owns 81 offshore rigs and 40 onshore rigs. Earlier today, it announced that its profits grew by about 2 percent in 2025 compared to the previous year, recording a net profit of SR818 million ($218 million).
Demand for drilling rigs expected to rise
During the fourth quarter of 2025, ADES acquired Shelf Drilling, which owns 29 drilling rigs outside the Gulf region and four rigs within the region, for SR1.95 billion.
Farouk noted that the geographic distribution of rigs before and after the acquisition “enabled the company to deal with the impact of the war with flexibility,” adding that the firm’s estimates “were based on the assumption that geopolitical tensions would continue for up to six months.”
He added: “Demand is expected to rise with higher oil prices,” projecting that the company’s earnings before interest, taxes, depreciation, and amortization in 2026 would reach about SR4.87 billion, representing growth of up to 44 percent compared to the upper range of its 2025 estimates.
The CEO said that concerns about inflation and recession “do not hinder growth targets, given the strength of debt levels, cash flows, and liquidity, which support the company’s dividend policy.
