Proactiveinvestors United Kingdom ADES International Holding PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom ADES International Holding PLC RSS feed en Sun, 26 May 2019 10:37:01 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190517070004_14077692/ Fri, 17 May 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190517070004_14077692/ <![CDATA[News - ADES International expands credit facilities ]]> https://www.proactiveinvestors.co.uk/companies/news/219771/ades-international-expands-credit-facilities-219771.html ADES International Holding PLC (LON:ADES) told investors it has expanded its credit facilities with Alinma Bank, a Saudi Arabia based financial institution.

It has secured an additional USS$144mln top-up to its prior US$140mln facility. The total approved facility now stands at US$284mln, and, some US$140mln has been utilised.

READ: ADES International expects big revenue boost

The company noted that the additional facility provides liquidity and will be used for capital spending, according to the group’s business strategy.

"We are very pleased to be continuing our relationship with Alinma Bank and signing this flexible facility, which demonstrates continued confidence in the group and our strategy,” said Mohamed Farouk, ADES chief executive.

“The first debt arrangement was important in realizing our strategic acquisitions in KSA last year, whereas the new facility will further enhance our strong cash position and optimise the cost of funding for our business activities."

 

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Tue, 07 May 2019 08:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219771/ades-international-expands-credit-facilities-219771.html
<![CDATA[RNS press release - ADES Secures Additional KSA Facility ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190507070008_14063802/ Tue, 07 May 2019 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190507070008_14063802/ <![CDATA[News - ADES International expects big revenue boost as Weatherford rig purchases kick in ]]> https://www.proactiveinvestors.co.uk/companies/news/219680/ades-international-expects-big-revenue-boost-as-weatherford-rig-purchases-kick-in-219680.html  

What it does

ADES Group currently operates a fleet of 13 jack-up offshore drilling rigs, 34 onshore drilling rigs, a jack-up barge, and a mobile offshore production unit (MOPU), which includes a floating storage and offloading unit.

The Weatherford acquisition doubled the operational rig fleet and added 2,300 staff in the Middle East

Some 60% of revenues come from offshore drilling and 40% onshore.

  How is it doing

Revenues were 30% higher in 2018 at US$206.5mln as new rigs contributed for the first time and utilisation rates picked up.

Rigs under operation jumped to 28 from 12 in 2017 boosting underlying profits rose by 26% to US$101mln.

Normalised net profit decreased by 10.2% year-on-year to USD 44.6 million in 2018 from USD 49.6 million in 2017 driven by higher net finance cost related to an increase in debt utilisation, as well as higher depreciation and tax expenses.

Material revenue growth forecast in 2019 driven primarily by the full-year impact of the Nabors and Weatherford acquisitions.

Debt to shareholders funds at the year-end was around 103%

ADES has kept within its target of a ratio of order backlog to net debt of at least 2x (times).

  What the boss says: Mohamed Farouk, chief executive

“Our focus in 2019 will be on extracting synergies from the acquisitions and the integration of the Weatherford assets, tendering activity and maintaining excellent customer service and asset utilisation, said chief executive,

 

Inflexion points Backlog as at end of February 2019 of US$1.5bn, reflecting recently finalised acquisitions, contract renewals and new awards, Two new contracts in February 2019 for new-build rigs in Saudi Arabia for a tenure of seven years each Renewed six contracts in Saudi in February 2019 for three years each, contributing US$228mln of the additional backlog at signing Expanded loan facility with Alinma Bank by US$144mln Integration of rigs acquired from Weatherford Further improvement in utilisation rates Debt reduction

 

Blue sky

Crude prices continue to support growth in exploration in Middle East region

Stable oil price encourages more drilling and rig rates improve as a result

Additional acquisitions

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Fri, 03 May 2019 15:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219680/ades-international-expects-big-revenue-boost-as-weatherford-rig-purchases-kick-in-219680.html
<![CDATA[RNS press release - Annual Financial Report 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190430070017_14056356/ Tue, 30 Apr 2019 07:00:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190430070017_14056356/ <![CDATA[RNS press release - ADES closes USD denominated bond offering ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190424154031_14050666/ Wed, 24 Apr 2019 15:40:31 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190424154031_14050666/ <![CDATA[RNS press release - ADES Prices USD-Denominated Bond Offering ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190417070003_14043821/ Wed, 17 Apr 2019 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190417070003_14043821/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412120736_14039686/ Fri, 12 Apr 2019 12:07:36 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412120736_14039686/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412120234_14039677/ Fri, 12 Apr 2019 12:02:34 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412120234_14039677/ <![CDATA[News - ADES International shares rise as it wins two new contracts in Algeria ]]> https://www.proactiveinvestors.co.uk/companies/news/218481/ades-international-shares-rise-as-it-wins-two-new-contracts-in-algeria-218481.html Oil and gas rig contractor ADES International Holding PLC (LON:ADES) saw its shares rise on Friday as it secured two onshore contracts in Algeria with state-owned oil group Sonatrach.

The ADES 2 contract comprises one firm well and four optional wells worth up to US$8mln in total.

ADES 3, meanwhile, has been signed for two years, plus one-year optional from the third quarter this year. This will add US$19mln to the order backlog.

Mohamed Farouk, ADES’ chief executive, said he was particularly pleased with the resumption of operations at ADES 2, which will add incremental value.

“We remain confident in our ability to use ADES' well-distributed asset base to enter into competitive contract bidding across the region and leverage our unutilised rigs," he added.

in late afternoon trading, ADES international shares were 5% higher at US$14.60.

 -- Adds share price --

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Fri, 12 Apr 2019 07:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218481/ades-international-shares-rise-as-it-wins-two-new-contracts-in-algeria-218481.html
<![CDATA[RNS press release - ADES Secures New Contracts in Algeria ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412070005_14038567/ Fri, 12 Apr 2019 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190412070005_14038567/ <![CDATA[RNS press release - ADES Announces USD denominated bond offering ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190408103951_14032497/ Mon, 08 Apr 2019 10:39:51 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190408103951_14032497/ <![CDATA[RNS press release - ADES Reissues its Results for 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190405070004_14029963/ Fri, 05 Apr 2019 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190405070004_14029963/ <![CDATA[News - ADES International concludes Weatherford transaction picking up remaining rigs in Algeria and Iraq ]]> https://www.proactiveinvestors.co.uk/companies/news/217199/ades-international-concludes-weatherford-transaction-picking-up-remaining-rigs-in-algeria-and-iraq-217199.html ADES International Holding PLC (LON:ADES) told investors that it has now completed its transaction with Weatherford International, to acquire a package of rigs currently in Algeria and Iraq.

For a total of US$32mln, the company has picked up two onshore rigs currently in Algeria and two that are in southern Iraq but are due for relocation to Saudi Arabia.

It concludes the larger deal with Weatherford, which has seen ADES pay a total of US$287.5mln for 31 rigs - comprising 12 in Kuwait, 11 in Saudi Arabia, 6 in Algeria and the 2 in southern Iraq.

READ: Ades revenues jump as rig utilisation picks up

"With the Weatherford acquisition now complete, we have effectively tripled our fleet size and more than doubled our number of operating rigs across an expanded geographical footprint,” said Dr Mohamed Farouk, ADES chief executive.

“Our strategy in 2019 will focus on organic growth and on capitalising on the increased tendering capacity afforded by the eleven uncontracted rigs acquired through the transaction.

“We expect to extract synergies from our larger fleet and are pushing forward an asset integration program to manage the rapid operational growth."

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Tue, 26 Mar 2019 07:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217199/ades-international-concludes-weatherford-transaction-picking-up-remaining-rigs-in-algeria-and-iraq-217199.html
<![CDATA[RNS press release - ADES Completes Weatherford Transaction ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190326070011_14015149/ Tue, 26 Mar 2019 07:00:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190326070011_14015149/ <![CDATA[News - Ades International's revenues jump as rig utilisation picks up ]]> https://www.proactiveinvestors.co.uk/companies/news/217100/ades-international-s-revenues-jump-as-rig-utilisation-picks-up-217100.html Oil rig contractor Ades International Holding PLC (LON:ADES) posted revenues 30% higher in 2018 as new rigs contributed for the first time and utilisation rates rose.

Underlying profits rose by 26% to US$101mln, helped by a rise in the number of rigs under operation to 28 from 12 in 2017.

Utilisation rates rose to 85% from 78%.

The order backlog at the end of February totalled US$1.5bn, which was helped by completion of a 31 onshore rig purchase from US group Weatherford.

New contract

Ades specialises in the supply of onshore and shallow water jack-up rigs in Egypt and the Middle East, but recently won its first contract for a deepwater rig in the Mediterranean Basin.

Loans to fund these acquisitions pushed net debt up to US$424mln, but Ades expects its working capital to normalise this year even though it is forecasting a material rise in sales over the year.

There will also be spending on two new onshore rigs, upgrades to the Weatherford fleet and additional maintenance costs.

“Our focus in 2019 will be on extracting synergies from the acquisitions and the integration of the Weatherford assets, tendering activity and maintaining excellent customer service and asset utilisation, said chief executive, Mohamed Farouk

 

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Mon, 25 Mar 2019 08:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/217100/ades-international-s-revenues-jump-as-rig-utilisation-picks-up-217100.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190325070012_14013411/ Mon, 25 Mar 2019 07:00:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190325070012_14013411/ <![CDATA[RNS press release - Notice of Full Year 2018 Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190314070020_14001569/ Thu, 14 Mar 2019 07:00:20 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190314070020_14001569/ <![CDATA[News - ADES secures first deepwater drilling contract in Egypt deal with Dana Gas ]]> https://www.proactiveinvestors.co.uk/companies/news/216079/ades-secures-first-deepwater-drilling-contract-in-egypt-deal-with-dana-gas-216079.html ADES International Holding Ltd (LON:ADES) has clinched its first deepwater drilling contract with a short-term deal in Egypt for Emirati firm Dana Gas.

The drilling services provider said the contract was to drill one well in the Egyptian Mediterranean basin, expected to take 77 days, but it also had an extension option for another three wells.

READ: ADES International completes purchase of Algerian rigs from Weatherford

The actual drilling will be subcontracted to ADVantage, a joint venture (JV) formed last November between ADES and Vantage Drilling International and carried out using Vantage’s Tungsten Explorer ultra-deepwater drillship and ADES’ workforce.

Operating on a profit-sharing basis, ADES said the contract would generate additional revenue without the “significant capital expenditure” normally associated with deepwater drilling.

The group added that with “significant gas discoveries and prospective drilling programmes” in the region, the contract offered several “attractive commercial opportunities” if there was a long-term extension.

Dr Mohamed Farouk, chief executive of ADES, said the firm continued to see “long-term prospects” for its JV and Vantage’s “high-quality assets” in the ultra-deepwater Egyptian market.

Broker estimates “significant” financial impact

In a note, analysts at the company’s broker Canaccord Genuity said the financial impact of the deal on ADES would be “significant”, adding around US$2mln to its net profit for 2019.

They added that if similar arrangements could be renewed throughout 2020, around US$3.5mln could be added to profits on an annualised basis.

“[The contract] represents two important firsts for ADES. The company has not previously operated in deepwater, and this is also the first time the group has succeeded in winning a contract with its asset-light strategy. Both of these were promises made at the time of IPO and have now been honoured, fulfilling all of the commitments made at that time,” the broker said.

In mid-afternoon trading Friday, ADES shares were steady at US$13.9.

-- Amends headline, adds broker comment and updates share price --

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Fri, 08 Mar 2019 08:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216079/ades-secures-first-deepwater-drilling-contract-in-egypt-deal-with-dana-gas-216079.html
<![CDATA[RNS press release - ADES Secures Deepwater Drilling Contract in Egypt ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190308070003_13994807/ Fri, 08 Mar 2019 07:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190308070003_13994807/ <![CDATA[RNS press release - ADES Appoints Non-Executive Director ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190304070008_13988273/ Mon, 04 Mar 2019 07:00:08 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190304070008_13988273/ <![CDATA[News - ADES International completes purchase of Algerian rigs from Weatherford ]]> https://www.proactiveinvestors.co.uk/companies/news/215485/ades-international-completes-purchase-of-algerian-rigs-from-weatherford-215485.html ADES International Holding Ltd (LON:ADES) has completed its acquisition of four onshore rigs in Algeria from oil and gas services giant Weatherford International PLC (NYSE:WFT).

The four rigs were bought for US$40mln, with another two rigs in the country to be purchased for US$20mln within the next four weeks.

READ: ADES International renews contracts for six rigs in Saudi Arabia

The deal forms part of a larger US$287.5mln agreement with Weatherford to buy a total of 31 onshore drilling rigs across Kuwait, Saudi Arabia, Algeria, and Southern Iraq.

Oil well driller ADES added that the purchase included all of Weatherford’s associated assets in Algeria, including around 350 employees and contractors.

Dr Mohamed Farouk, chief executive of ADES, said the “transformational” acquisition had significantly increased the size of the group as well as its exposure to the onshore oil and gas market.

He added that the deepening presence in Algeria underpinned the company’s revenue expectations for 2019.

In mid-morning trading Thursday, ADES shares were steady at 13.9p.

--Adds share price--

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Thu, 28 Feb 2019 07:39:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215485/ades-international-completes-purchase-of-algerian-rigs-from-weatherford-215485.html
<![CDATA[RNS press release - ADES Acquires Weatherford Operations in Algeria ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190228070001_13984363/ Thu, 28 Feb 2019 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190228070001_13984363/ <![CDATA[News - ADES International renews contracts for six rigs in Saudi Arabia ]]> https://www.proactiveinvestors.co.uk/companies/news/215193/ades-international-renews-contracts-for-six-rigs-in-saudi-arabia-215193.html Oil and gas rig supplier ADES International Holding PLC (LON:ADES) has renewed contracts for six onshore operating rigs in Saudi Arabia that it acquired in December.

All six rigs are contracted for a minimum of three years, starting in February, and they will add up to US$228mln to the contract pipeline.

Mohamed Farouk, Ades’ chief executive said the renewals take the current backlog to US$1.5 bn.

“They further underpin our revenue expectations for 2019 and significantly add to our long-term revenue visibility.”

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Mon, 25 Feb 2019 07:45:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215193/ades-international-renews-contracts-for-six-rigs-in-saudi-arabia-215193.html
<![CDATA[RNS press release - ADES secures contract renewals for six rigs in KSA ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190225070006_13979574/ Mon, 25 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190225070006_13979574/ <![CDATA[News - ADES International Holding secures two onshore drilling contracts in the Kingdom of Saudi Arabia ]]> https://www.proactiveinvestors.co.uk/companies/news/214787/ades-international-holding-secures-two-onshore-drilling-contracts-in-the-kingdom-of-saudi-arabia-214787.html ADES International Holding PLC (LON:ADES) has secured two onshore drilling contracts in the Kingdom of Saudi Arabia, following a competitive tender process, that will add a total estimated order backlog of around US$150mln.

The leading oil & gas drilling and production services provider in the Middle East and North Africa said each of the secured contracts has a tenure of seven years - five years fixed and two years optional -  with operations due to commence in the second half of 2019.

READ: ADES International launches integration project for recent acquisitions

The group added that it will order two new-build onshore rigs that meet the contract specifications for a total cost of up to US$ 45mln.

The company said it sees long-term potential for these assets in the Saudi market.

Dr. Mohamed Farouk, ADES International’s chief executive officer, commented: "ADES' reputation for operational excellence and its exemplary safety record allow it to bid for and win competitive tenders across the region.

“We have leveraged this strength to build a substantial presence in Saudi Arabia's onshore and offshore markets with long term, secure contracts.”

He added: “Organic growth is in line with our strategy post the recent acquisitions and we expect to generate a strong return on this investment whilst delivering excellent customer service and value for money for our client."

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Mon, 18 Feb 2019 07:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/214787/ades-international-holding-secures-two-onshore-drilling-contracts-in-the-kingdom-of-saudi-arabia-214787.html
<![CDATA[RNS press release - ADES wins two onshore contracts in Saudi Arabia ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190218070006_13971932/ Mon, 18 Feb 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190218070006_13971932/ <![CDATA[RNS press release - ADES International Holding Ltd. Change of Name ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190215173546_13971752/ Fri, 15 Feb 2019 17:35:46 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190215173546_13971752/ <![CDATA[News - ADES International launches integration project for recent acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/212787/ades-international-launches-integration-project-for-recent-acquisitions-212787.html ADES International Holdings Ltd (LON:ADES) has unveiled a project to integrate its recent acquisitions in a move to improve value delivery.

The firm, which provides drilling and production services to the oil & gas sector in the Middle East and North Africa, said the project will run through 2019 and respect all existing client commitments, with strong governance installed for guidance and to minimise the impact on daily operations.

READ: ADES International secures seven-year contract renewal in Saudi Arabia

The Boston Consulting Group, which the firm said had “deep expertise in integration programs” in the sector, will support the project.

Dr Mohamed Farouk, chief executive of ADES, said the acquisitions had allowed the firm to “add strong client relationships, assets and teams” to its portfolio, adding that he believed the project could be rolled out with “minimal impact on daily operations”.

In lunchtime trading Thursday, ADES shares were at 13.2p.

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Thu, 17 Jan 2019 12:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212787/ades-international-launches-integration-project-for-recent-acquisitions-212787.html
<![CDATA[RNS press release - ADES Extends Contract for ADM II ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190114070006_13932759/ Mon, 14 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190114070006_13932759/ <![CDATA[RNS press release - ADES LTIP Award - Dr. Mohamed Farouk ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190104070004_13923586/ Fri, 04 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20190104070004_13923586/ <![CDATA[News - ADES International secures seven-year contract renewal in Saudi Arabia ]]> https://www.proactiveinvestors.co.uk/companies/news/211136/ades-international-secures-seven-year-contract-renewal-in-saudi-arabia-211136.html Oil and gas services provider ADES International Holding Ltd (LON:ADES) has secured an extension on its contract for the Admarine 657 offshore rig in Saudi Arabia.

The renewal is for a further seven years and is expected to add up to US$150mln of backlog with the day rate broadly in line with the existing contract. The contract will begin after the previous one ends in the first quarter of 2019.

READ: ADES International completes Saudi Arabia rig purchases from Weatherford

"We are delighted to have extended the contract for Admarine 657 with this important and valued customer,” said chief executive Mohamed Farouk.

“We now have a long-term contracted visibility, underlining our ability to consistently sustain our backlog due to our customer-centric approach that delivers a tailored service with superior quality and an impeccable safety record. The acquisition of these ultra-shallow assets is looking very positive for our shareholders.”

Shares were little changed in morning trading at 14p. 

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Thu, 13 Dec 2018 09:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211136/ades-international-secures-seven-year-contract-renewal-in-saudi-arabia-211136.html
<![CDATA[RNS press release - ADES secures a seven-year contract in Saudi Arabia ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181213070004_13901850/ Thu, 13 Dec 2018 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181213070004_13901850/ <![CDATA[News - ADES International completes Saudi Arabia rig purchases from Weatherford ]]> https://www.proactiveinvestors.co.uk/companies/news/210367/ades-international-completes-saudi-arabia-rig-purchases-from-weatherford-210367.html ADES International Holding Ltd (LON:ADES) has completed the acquisition of eleven oil and gas rigs located in Saudi Arabia from US firm Weatherford International.

In July, ADES agreed to pay Weatherford a total of $287.5mln for 31 rigs, eleven of which are in Saudi, twelve in Kuwait, two in Southern Iraq and six in Algeria.

READ: ADES International's valuation gap 'hard to justify'

The Saudi-based rigs cost US$92.5mln with nine currently under contra ct and an order backlog of US$78mln.

ADES expects to add new contracts and extensions by the end of the year.

Completion on the six Weatherford rigs in Algeria is also scheduled by the end of 2018.

Mohamed Farouk, ADES’ chief executive, added: “We have now completed the majority of the Weatherford acquisition, which is transformational for the group, significantly increasing our size, visibility and exposure in the onshore market.

"We are also particularly pleased to be deepening ADES' presence in KSA and strengthening our relationship with our strategic customer there who continues to place their confidence in us.”

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Mon, 03 Dec 2018 08:04:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210367/ades-international-completes-saudi-arabia-rig-purchases-from-weatherford-210367.html
<![CDATA[RNS press release - ADES Acquires 11 Onshore Drilling Rigs in the KSA ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181203070007_13887968/ Mon, 03 Dec 2018 07:00:07 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181203070007_13887968/ <![CDATA[News - ADES International's valuation gap 'hard to justify' ]]> https://www.proactiveinvestors.co.uk/companies/news/210223/ades-international-s-valuation-gap-hard-to-justify--210223.html Oil prices might still be volatile but the environment for companies serving the sector is much brighter than a year ago.

Rig providers are on the front line of exploration activity and a sharp increase in revenues in the latest quarter for ADES International Limited (LON:ADES) suggests things are moving again.

WATCH: Nabors and Kuwait acquisitions gives ADES International a boost in its third quarter

The last three months were a strong quarter said Mohamed Farouk, chief executive.

Utilisation rates rose to 83% helped also by the acquisition of three jack-up rigs from Nabors.

Revenues, meanwhile, rose 23% quarter -on- quarter to US$47mln with a 52% increase over the same period a year ago.

Focused on the Middle East, ADES had an order backlog worth US$437mln at the end of September while net debt was US$204mln.

Farouk said: “When combined with the recently acquired assets from Weatherford, our current cumulative backlog has reached $1 billion.

“We have increasing confidence in delivering material growth into 2019, which is underpinned by our significant and growing backlog."

Shares attractive says broker

The shares are attractive says broker Canaccord especially if a line is drawn through another recent deal in the sector.

Baker Hughes paid $550mln for a 5% stake in ADNOC Drilling, valuing the whole business at around $11bn.

Canaccord analyst Alex Brooks, in a note, highlighted that ADES is due to complete its deal to acquire rigs from Weatherford in the fourth quarter and after that, he says, the company’s fleet will similar to that of ADNOC Drilling.

“We believe that comparing ADNOC Drilling to ADES is fair, with appropriate caveats,” Brooks said.

“ADNOC Drilling is being valued by BHI - one of the leading companies in the oil industry - at around ten times the current enterprise value of ADES.

“By simple number of rigs, ADES is one-half the size of ADNOC Drilling; taking into account capability, ADES has perhaps one-quarter the capability.

“This still leaves a large valuation gap, and helps to underscore our continued bullishness on ADES.”

Describing ADES, the analyst added: “This is a low cost, high margin drilling business that is able to create value through operating drilling rigs at far lower costs than its industrial peers, but has at least as good safety & operating performance, and an expansion strategy that centres on adding rigs with a proven track record and secure backlog.”

Canaccord’s ‘buy’ recommendation comes with a $22.00 per share price target, suggesting some 50% upside to the current price.

At the current price, ADES is rated at half the value of its industrial peers – “A rating which we struggle to understand or justify,” Brooks said.

“The next trigger is the likely completion of the Weatherford acquisition.”

Weatherford deal to double ADES fleet

In July, ADES announced the $288mln deal to acquire 31 onshore drilling rigs located in North Africa and the Middle East from Weatherford International.

The deal doubles ADES operational drill fleet and includes contracts, management systems and approximately 2,300 staff throughout Algeria, Kuwait and Saudi Arabia.

At present, twenty of the rigs are under contract with the rest to be used as inventory and for tenders.

Revenues from the Weatherford rigs are expected to be US$150mln a year and they will add US$750mln to ADES' order backlog.

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Thu, 29 Nov 2018 09:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210223/ades-international-s-valuation-gap-hard-to-justify--210223.html
<![CDATA[Media files - Nabors and Kuwait acquisitions gives ADES International a boost in its third quarter ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11292/nabors-and-kuwait-acquisitions-gives-ades-international-a-boost-in-its-third-quarter-11292.html Thu, 22 Nov 2018 15:59:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11292/nabors-and-kuwait-acquisitions-gives-ades-international-a-boost-in-its-third-quarter-11292.html <![CDATA[News - ADES revenues rise sharply as rig utilisation picks up ]]> https://www.proactiveinvestors.co.uk/companies/news/209747/ades-revenues-rise-sharply-as-rig-utilisation-picks-up-209747.html Higher oil prices are starting to feed through into the performance of rig operator ADES International PLC (LON:ADES).

The last three months was a strong quarter said Mohamed Farouk, chief executive.

READ: ADES International tipped for substantial upside as Canaccord runs its rule over Baker Hughes deal with ADNOC

Utilisation rates rose to 83% helped also by the acquisition of three jack-up rigs from Nabors. Revenues, meanwhile, rose 23% quarter -on- quarter to US$47mln with a 52% increase over the same period a year ago. For the nine months of the year so far, revenues have risen by 7% to US$127mln.

Middle East-focused ADES is in the process of acquiring another 31 rigs from US group Weatherford. Completion has been reached on twelve units based in Kuwait and ADES expects to tie up the remainder before the year-end. These were an order backlog worth US$437mln at the end of September when net debt was US204mln.

Farouk said: “When combined with the recently acquired assets from Weatherford, our current cumulative backlog has reached $1 billion.

“We have increasing confidence in delivering material growth into 2019, which is underpinned by our significant and growing backlog."

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Thu, 22 Nov 2018 08:29:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209747/ades-revenues-rise-sharply-as-rig-utilisation-picks-up-209747.html
<![CDATA[RNS press release - ADES 3Q 2018 Trading Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181122070006_13876282/ Thu, 22 Nov 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181122070006_13876282/ <![CDATA[RNS press release - ADES Completes Kuwait Acquisition from Weatherford ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181102070001_13852349/ Fri, 02 Nov 2018 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181102070001_13852349/ <![CDATA[News - ADES International tipped for substantial upside as Canaccord runs its rule over Baker Hughes deal with ADNOC ]]> https://www.proactiveinvestors.co.uk/companies/news/206707/ades-international-tipped-for-substantial-upside-as-canaccord-runs-its-rule-over-baker-hughes-deal-with-adnoc-206707.html Baker Hughes deal with the Abu Dhabi National Oil Company’s (ADNOC) drilling unit points to a very significant upside for London-listed ADES International Holding Ltd (LON:ADES), that’s according to stockbroker Canaccord Genuity, which has repeated its ‘buy’ recommendation.

Yesterday’s Baker Hughes agreed to pay $550mln for a 5% stake in ADNOC Drilling, valuing the whole business at around $11bn.

Canaccord analyst Alex Brooks, in a note, highlighted that ADES is due to complete its deal to acquire rigs from Weatherford in the fourth quarter and after that, he says, the company’s fleet will similar to that of ADNOC Drilling.

READ: ADES bolsters Middle East presence with US$288mln onshore rig deal

“We believe that comparing ADNOC Drilling to ADES is fair, with appropriate caveats,” Brooks said.

“ADNOC Drilling is being valued by BHI - one of the leading companies in the oil industry - at around ten times the current enterprise value of ADES.

“By simple number of rigs, ADES is one-half the size of ADNOC Drilling; taking into account capability, ADES has perhaps one-quarter the capability. This still leaves a large valuation gap, and helps to underscore our continued bullishness on ADES.”

Describing ADES, the analyst added: “this is a low cost, high margin drilling business that is able to create value through operating drilling rigs at far lower costs than its industrial peers, but has at least as good safety & operating performance, and has an expansion strategy that centres on adding rigs with a proven track record and secure backlog.”

Canaccord’s ‘buy’ recommendation comes with a $22.00 per share price target, suggesting some 70% upside to the current price.

“At the current price, ADES is trading at less than 6.5x 19E EV/EBITDA, i.e. under half its industrial peers - a rating which we struggle to understand or justify,” Brooks said.

“The next trigger is the likely completion of the Weatherford acquisition.”

Weatherford deal to double ADES fleet

In July, ADES announced the $288mln deal to acquire 31 onshore drilling rigs located in North Africa and the Middle East from Weatherford International.

The deal doubles ADES operational drill fleet and includes contracts, management systems and approximately 2,300 staff throughout Algeria, Kuwait and Saudi Arabia.

At present, twenty of the rigs are under contract with the rest to be used as inventory and for tenders. Revenues from the Weatherford rigs are expected to be US$150mln a year and they will add US$750mln to ADES' order backlog.

The purchase price is US$287.5mln to be paid through cash and debt facilities.

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Tue, 09 Oct 2018 15:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206707/ades-international-tipped-for-substantial-upside-as-canaccord-runs-its-rule-over-baker-hughes-deal-with-adnoc-206707.html
<![CDATA[RNS press release - ADES Admission of New Ordinary Shares ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181002070002_13812136/ Tue, 02 Oct 2018 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20181002070002_13812136/ <![CDATA[News - ADES International expects rig rates to pick up with oil price ]]> https://www.proactiveinvestors.co.uk/companies/news/204043/ades-international-expects-rig-rates-to-pick-up-with-oil-price-204043.html Middle East-focused oil and gas rig specialist ADES International Holding Ltd (LON:ADES) expects solid revenue growth in the second half of the year as oil activity picks up.

Turnover dipped 9% in the six months to June to US$79.7mln as ADES carried out remedial work on rigs in Egypt and Saudi Arabia. Even with this disruption, utilisation of ADES rig fleet was 80%. Underlying profits dropped 20% to US$37.8mln, but a one-off gain on acquisitions boosted interim net income by 10.5% to US$21.4mln.

READ: ADES International in good shape for exploration upturn

ADES expects the acquisition of 31 onshore rigs from US group Weatherford to conclude by the end of the year, which will double the size of the business.

The Weatherford rigs and three acquired from shallow offshore Nabors during the first half of the year are expected to contribute US$210mln to annual revenues.

With the Weatherford acquisition, the order book will also rise to about US$1.35bn.

Nabors will contribute substantially in the second half of the year, while rates generally are picking up said ADES.

Oil prices of around US$70 per barrel should drive up drive up utilisation and day-rates, with the MENA region expected to capture a significant share of global growth.

Debt at the half year was US$174mln.

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Mon, 03 Sep 2018 08:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204043/ades-international-expects-rig-rates-to-pick-up-with-oil-price-204043.html
<![CDATA[RNS press release - ADES Half-Year 2018 Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180903070008_13775625/ Mon, 03 Sep 2018 07:00:08 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180903070008_13775625/ <![CDATA[RNS press release - ADES Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180815070004_13755665/ Wed, 15 Aug 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180815070004_13755665/ <![CDATA[News - ADES bolsters Middle East presence with US$288mln onshore rig purchase ]]> https://www.proactiveinvestors.co.uk/companies/news/200655/ades-bolsters-middle-east-presence-with-us288mln-onshore-rig-purchase-200655.html ADES International Holding Ltd (LON:ADES) has agreed to buy 31 onshore drilling rigs located in North Africa and the Middle East from drilling services powerhouse Weatherford International.

The deal doubles ADES operational drill fleet and includes contracts, management systems and approximately 2,300 staff throughout Algeria, Kuwait and Saudi Arabia.

READ: ADES International sees oil price rally feeding through to rig activity

At present, twenty of the rigs are under contract with the rest to be used as inventory and for tenders.

Revenues from the Weatherford rigs are expected to be US$150mln a year and they will add US$750mln to ADES' order backlog.

The purchase price is US$287.5mln to be paid through cash and debt facilities.

Mohamed Farouk, chief executive, said: "We are truly delighted to have signed this agreement with Weatherford. 

Describing it as a landmark transaction, Farouk added it will significantly expand ADES total fleet and more than doubles its operational fleet.

"Its reputation as one of the world's largest oilfield service companies and its deep-rooted knowledge and experienced professionals in over 90 countries guarantees that this substantial asset and personnel addition will be a net positive for ADES.

The new assets will also reinforce the company’s position in the Saudi Arabian and Algerian markets and mark the expansion of its regional footprint into Kuwait and Southern Iraq.

ADES will have 34 onshore rigs in the Middle East/ North Africa region on completion.

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Thu, 12 Jul 2018 07:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200655/ades-bolsters-middle-east-presence-with-us288mln-onshore-rig-purchase-200655.html
<![CDATA[RNS press release - ADES acquires 31 onshore rigs from Weatherford ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180712070003_13714670/ Thu, 12 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180712070003_13714670/ <![CDATA[News - ADES International in good shape for exploration upturn ]]> https://www.proactiveinvestors.co.uk/companies/news/198775/ades-international-in-good-shape-for-exploration-upturn-198775.html Mohamed Farouk, oil driller ADES International’s (LON:ADES) chief executive, makes his business sound very straightforward.

"Our business model relies largely on legacy offshore assets that we purchase and refurbish."

To give an idea of the cost difference, he says on average it costs about US$30mln to buy and refurbish a mothballed rig compared to the new build cost of about US$200mln.

And it is not as if these are tired pieces of kit. Far from it. Most are in excellent condition, he says, and require just a few adjustments to fit in with ADES’s plans.

Top five driller

ADES is currently in the top five of drill contractors in the Middle East and North Africa region (MENA), which he says puts it in a happy middle ground between the giants and local operators - ‘the culture is of a multinational but the service like a local firm’.

Fleet boosted by Weatherford acquisition

Based in Egypt, ADES has just made another significant addition to its fleet with the acquisition of 31 onshore drilling rigs located in MENA from drilling services powerhouse Weatherford International.

At present, twenty of the rigs are under contract with the rest to be used as inventory and for tenders.

Revenues from the Weatherford rigs are expected to be US$150mln a year and they will add US$750mln to ADES' order backlog.

The purchase price is US$287.5mln to be paid from cash and debt facilities.

Farouk said he was ‘truly delighted’ with the deal. 

Describing it as a landmark transaction, Farouk added it will significantly expand ADES total fleet and more than doubles its operational fleet.

The new assets will also reinforce the company’s position in the Saudi Arabian and Algerian markets and mark the expansion of its regional footprint into Kuwait and Southern Iraq.

ADES will have 34 onshore rigs in the Middle East/ North Africa region on completion.

Nabors deal

The acquisition follows the acquisition of three jack-up rigs from US firm Nabors, further strengthening its position when oil activity recovers.

At that point, if history is a guide, prices for contracts will bounce sharply higher as drill contracting is a notoriously feast or famine business.

Oil rally

And it may not be too far away.

In a trading update in June, ADES said it expects the recent rally in oil prices to feed through into “a marked improvement in global supply-demand dynamics and a resulting upward trajectory in day rates and tendering activity”. 

Crude prices have doubled over the past two years and oil and gas companies have dusted down exploration programmes mothballed during the three-year crude slump.

ADES’s fleet comprises jack-up offshore drilling rigs, onshore drilling rigs, a jack-up barge, and a mobile offshore production unit.

A US$140 ln loan facility was arranged with Alinma Bank, a Saudi-based financial institution, toallow it to buy more rigs to operate in the Kingdom.

The credit line is in addition to a US$450mln facility arranged by Bank of America Merrill Lynch and the European Bank for Reconstruction and Development.

The Nabors rigs will take the number of Jack-Ups to thirteen and Farouk expects the new rigs to add to revenues in the second half of 2018.

At US$15.20, up 15% on the Weatherford deal, ADES is valued at US$644mln.

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Wed, 13 Jun 2018 08:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198775/ades-international-in-good-shape-for-exploration-upturn-198775.html
<![CDATA[News - ADES International sees oil price rally feeding through to rig activity ]]> https://www.proactiveinvestors.co.uk/companies/news/198767/ades-international-sees-oil-price-rally-feeding-through-to-rig-activity-198767.html Oil rig owner ADES International Holding PLC (LON:ADES) expects the recent uptick in oil prices will lead to higher tendering activity and hire rates.

The Egypt-based group has just completed the acquisition of three jack-up rigs from US group Nabors.

READ: ADES International adds to firepower with US$140mln Saudi facility

That will increase the size of its jack-up fleet to thirteen rigs and make it one of the largest operators in the MENA (Middle East North Africa) region.

Mohamed Farouk, chief executive, said the new rigs would boost revenues in the second half of 2018.

Turnover in the first three months was US$41.2mln, which was down 15% on this time a year ago but 7% higher quarter-on-quarter.

Rig utilisation rates were 77% with a contract backlog of US$396mln.

“The build-up of our backlog is one of our main pillars for growth, which we are delivering by developing long-term relationships with our existing clients as well as actively participating in tendering activity to acquire new ones,” said Farouk.

He also expects the recent rally in oil prices to feed through into “a marked improvement in global supply-demand dynamics and a resulting upward trajectory in day rates and tendering activity”. 

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Wed, 13 Jun 2018 07:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198767/ades-international-sees-oil-price-rally-feeding-through-to-rig-activity-198767.html
<![CDATA[RNS press release - ADES completes acquisition of three offshore rigs ]]> https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180613070005_13677197/ Wed, 13 Jun 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/15916/LSE20180613070005_13677197/