ADES Expects Up to 44% Earnings Rise Despite Regional Tensions Impacting Rigs

Wednesday, March 25, 2026

Saudi Arabian oil and gas drilling contractor ADES International Holding has reported it expects 44% rise in its core earnings in 2026, despite having several of its offshore rigs in the Gulf region temporarily suspended due to ongoing regional tensions.

ADES said it remains focused on the safety of its personnel and assets while working with clients and stakeholders to monitor developments and ensure operational readiness.

The company, which operates 123 rigs across 20 countries, said its geographic diversification and broader earnings base position it to withstand short-term disruptions.

Despite the situation, the company issued full-year 2026 EBITDA guidance of $1.2 billion to $1.29 billion (SAR 4.50 billion to SAR 4.87 billion), implying growth of 33% to 44% compared with the upper end of its 2025 guidance of $904 million (SAR 3.39 billion).

The outlook is supported by improved visibility following the acquisition of Shelf Drilling, expected synergies, and continued momentum across its international platform, the company said.

ADES also pointed to a positive tendering environment, rising utilization driven by its pipeline, and favorable day-rate dynamics in selected international markets. It added that production model activities are contributing positively, supported by oil prices and customer focus on brownfield optimization.

“Our extended number of assets, geographic diversification and broader earnings base position us to navigate such developments with discipline, while maintaining confidence in our forward outlook. Our 2026 guidance reflects the stronger visibility we now have across the business and the benefits of our expanded platform following the Shelf Drilling acquisition.

“The guidance implies solid year-on-year growth and is supported by greater clarity on the earnings profile of the enlarged Group and the conversion of identified synergies into financial performance. At the same time, we continue to see positive contribution from our brownfield production model activities, alongside encouraging momentum across a number of international markets where demand remains supportive,” said Mohamed Farouk, CEO of ADES Holding.

Categories: Middle East Drilling Industry News Activity Asia Oil and Gas

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