ADES, an oil and gas drilling and production services provider in the Middle East and North Africa, released its Q1 2019 results, revealing that its revenue hit $108.7mn, $29mn more than in made in H1 2018. Although it did not disclose its profit, the update noted that its profit margins were within expectations.
ADES secured two contracts in Algeria in April 2019 for its onshore rigs ADES 2 and ADES 3. Together, they add an estimated backlog of $27mn. Its backlog as of 31 March 2019 sat at $1.5bn.
“We delivered a strong operational performance in the first quarter of the year, significantly accelerating revenue growth which increased by almost threefold compared to Q1 2018," said ADES CEO Mohamed Farouk. "Our results were supported by the steady ramp up of utilisation rates and the increasing contribution from the 2018 acquisitions.
In line with our goal to optimise the Group’s capital structure and cost of funding, we have successfully completed a $325mn bond offering and extended our KSA facility with a $144mn top-up. Together, these facilities have strengthened our balance sheet and provide ample liquidity for our capital expenditure requirements.Our focus remains on extracting synergies and properly integrating the recently acquired rigs, tendering activity and maintaining excellent customer service and asset utilisation. ADES’ growing order backlog combined with improving end markets and higher utilisation rates provide significant growth potential and visibility, underpinning our confidence for 2019 and beyond.”