RIYADH: Saudi-listed offshore drilling contractor ADES Holding Co. has received resumption notices for all of its temporarily suspended offshore rigs in the Kingdom after operations at some facilities were affected by regional conflict.
In a statement, ADES said the resumption notices reflect the sustained strength of the company’s offshore market fundamentals, with contracted jackup utilization holding at around 90 percent and day rates remaining firm.
The update comes amid prolonged geopolitical tensions in the Gulf, where conflict involving Israel, the US, and Iran has disrupted energy operations and raised concerns over the security of key supply routes, including the Strait of Hormuz.
In March, CEO Mohamed Farouk told Asharq TV that ADES had suspended operations at 10 rigs in the Gulf region because of the conflict, adding that the interruptions were expected to be temporary.
“We are pleased with the swift resumption of all of our temporarily suspended offshore rigs in Saudi Arabia, which comes in addition to our rigs in Qatar that have already resumed and are back in full operation,” Farouk said in the latest statement.
He further said that this timely return across the region reflected both the encouraging easing of regional tensions and the unwavering commitment of the company’s teams to the highest standards of safety and operational readiness, values that had always defined how ADES operates.
“The safety of our personnel and assets remains, and will always remain, our highest priority, and it is precisely this discipline that has enabled us to preserve the integrity of our operations throughout this period and to be in a position to resume activity so quickly once conditions allowed,” Farouk added.
ADES posts steady earnings
Earlier this month, ADES reported a first-half net profit of SR364.97 million ($97.45 million), down 4.64 percent from a year earlier, largely because of the temporary suspension of several offshore rigs.
The company added that the decline was partly offset by robust revenue of SR4.54 billion in the first half, marking an increase of 49 percent compared to the same period last year.
It also said that it will distribute about SR220.8 million in interim cash dividends for the first half of 2026, equivalent to SR0.20 per share.
Farouk added that the company is maintaining its full-year earnings before interest, taxes, depreciation and amortization guidance in the range of SR4.5 billion to SR4.87 billion.
He said the guidance was underpinned by the scale and diversification of its 123-rig platform, the continued realization of synergies from the Shelf Drilling acquisition, and supportive momentum across international markets.
In November, ADES Holding completed the acquisition of Shelf Drilling Holding Ltd., helping position the company as a global leader in the shallow-water drilling segment.
Farouk concluded that these developments reinforce ADES’s position as a “Saudi national champion with a global footprint and a trusted partner to leading national and international oil companies.”
