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ADES International says operations running as normal

Snapshot

  • Middle East onshore and offshore drill rig contractor

  • Traditional skillset onshore and shallow water operations 

  • Two deepwater contracts picked up this year though Vantage JV 

Jack up rig

Quick facts: ADES International Holding PLC

Price: 8.85 USD

LSE:ADES
Market: LSE
Market Cap: $369.95 m
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Our focus remains on extracting synergies and properly integrating the recently acquired rigs, tendering activity and maintaining excellent customer service and asset utilization

Mohamed Farouk, chief executive

 

What it does

ADES International Holdings PLC (LON:ADES) currently operates a fleet of jack-up offshore drilling rigs, onshore drilling rigs, jack-up barges, and a mobile offshore production unit (MOPU), which includes a floating storage and offloading unit.

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

ADES also has a joint venture with deepwater specialist Vantage in the Med.

How it's doing

Revenue for the three months ended March 31, 2020, was up 22% year-on-year at US$132.7mln supporting by previously acquired assets, though organic revenue growth was marked at 7%.

ADES ended the quarter with an order backlog of US$1.34bn and noted that revenue trends continued through the month of April.

It comes against operational challenges caused by the coronavirus (COVID-19) pandemic and the challenging crude market which has seen sharply lower sales prices and triggered cost-cutting among many oil producers.

Nonetheless, ADES highlighted a rig utilisation rate of 96% in the first quarter versus 92% in the comparative period of 2019.

“The group's activities have not been significantly impacted by the COVID-19 pandemic to date and operations are running within the normal course of business,” the company said in its results statement. 

“However, we continue to monitor the situation closely, with robust health and safety protocols and business continuity plans in place to mitigate potential risks posed by the pandemic.”

What the boss says - CEO Mohamed Farouk

“The group's activities have not been significantly impacted by the COVID-19 pandemic to date and operations are running within the normal course of business,” the company said in its results statement. 

“However, we continue to monitor the situation closely, with robust health and safety protocols and business continuity plans in place to mitigate potential risks posed by the pandemic.”

 

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