ADES Holding net profit more than doubles to SAR 394.4M in H1 2024; Q2 at SAR 197.1M

ADES Holding Co.'s H1 2024 net profit more than doubled to SAR 394.4 million, compared to SAR 191.4 million a year earlier.

Revenues also climbed by 54.3% year-on-year (YoY) to SAR 3.1 billion in H1 2024, thanks to higher revenues from operations in Saudi Arabia on the start of contribution from the 19 rigs of Aramco’s megaproject beginning March 2024, compared to contributions from only seven rigs in H1 2023.

In addition, the company reported new contributions from India totaling SAR 98.8 million in H1 2024, reflecting the gradual deployment of three offshore rigs starting Q4 2023. This is in addition to growth in revenues from Kuwait, which during the same period contributed SAR 319 million from 10 operational rigs – with a full run rate as of April 2024 – versus contributions from only six rigs in H1 2023.

Moreover, there was a threefold increase in revenue from Algeria, given the contribution of three additional rigs to the total five units in the first half of the year, versus only two in H1 2023. Furthermore, elevated effective daily rates in offshore rigs in Saudi Arabia and Egypt also helped drive revenue growth.

The six-month profit hike was also backed by a 3.3% annual expansion in net profit margin to 13.2%, versus 9.9% in H1 2023. The group’s strong bottom-line performance reflected higher revenues and improved EBITDA profitability (+3.3pp).

This aligns with the management’s 2023 guidance regarding the interest expense incurred on the back of refurbishment projects to start to normalize in 2024 after all planned rigs have been deployed. This was partly offset by higher depreciation expenses following the deployment of rigs in Saudi Arabia, Kuwait, Algeria and India.

In Q2 2024, the company reported a net profit of SAR 197.1 million, up 90% from SAR 103.83 million in Q2 2023.

Sequentially, net profit fell slightly from SAR 197.36 million in Q1 2024.

Shareholders’ equity, excluding minority interest, stood at SAR 6.27 billion as of June 30, 2024, jumping from SAR 2.46 billion a year earlier.

View More Financial Results