Dubai – Mubasher: ADES International Holding Plc, a leading oil and gas drilling and production services provider in the MENA region, on Tuesday announced its unaudited financial results for the period ended 31 March 2019.
The company has generated revenue of $108.7 million in the first quarter of 2019, versus $41.2 million in Q1-18, according to a statement.
Backlog stood at $1.5 billion at the end of March, compared to $1.2 billion at the end of fiscal year 2018, ADES said.
Cash and cash equivalents fell to $23.6 million in Q1-19, versus $130 million as of end 2018, while net debt amounted to $533.2 million as of 31 March 2019, the company added.
“The decrease in cash was driven by the completion of the Weatherford transaction in Algeria and Iraq for $72 million and planned capital expenditure associated with the acquisitions,” ADES noted.
In terms of operations, the company has secured its first deepwater drilling services contract in the Egyptian Mediterranean Basin using its asset-light model.
The company has also renewed six contracts in Saudi Arabia for a duration of three-year each for the recently acquired rigs, as well as secured two new contracts for new-build rigs in the kingdom for a tenure of seven years each.
In May, ADES has secured an additional $144 million Saudi facility top-up to the $140 million credit facility from Alinma Bank, the statement indicated.
Moreover, ADES has closed a $325 million US dollar-denominated bond offering last April in aggregate principal amount of 8.625% senior secured notes due in 2024.
It is worth noting that both S&P and Fitch have affirmed a B+ credit rating for ADES.
Furthermore, the company has secured two new contracts for its onshore rigs ADES 2 and ADES 3 in Algeria last April.
Mohamed Farouk, CEO of ADES International, said: “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. Our results were supported by the steady ramp up of utilisation rates and the increasing contribution from the 2018 acquisitions.”
