TIDMADES
RNS Number : 1368I
ADES International Holding
22 November 2018
For the purpose of the Transparency Directive the Home Member
state of the issuer is the United Kingdom.
ADES International Holding Ltd
Q3 2018 Operational Update
London, 22 November 2018
Q3 2018 trading update - on track to meet full year
expectations
(London & Dubai, 22 November 2018) ADES International
Holding Ltd. ("ADES" or the "Group"), a leading oil & gas
drilling and production services provider in the Middle East and
North Africa (MENA), updates the market on its performance over the
three and nine months to 30 September 2018 ("Q3" and "YTD",
respectively). The financial information included below is
unaudited.
Q3 Highlights
-- YTD Recordable Injury Frequency Rate (RIFR) of 0.59, versus
IADC worldwide standard rate at 0.69(1)
-- YTD utilisation rate at 83% (H1 2018: 80%)
-- Backlog as of 30 September 2018 at $437 million
-- Revenue YTD of $127 million, a 7% increase year on year, with
Q3 2018 at $47 million, up 23% on Q2 2018 and 52% on Q3 2017
-- Cash and Cash Equivalents stood at $186 million, giving a Net Debt of $204 million
-- Profit margins are in line with H1 2018
-- Successful contract extension of Admarine V to the end of the year
-- Successfully exercised ADES 3 one year extension option to October 2019
(1) According to the latest published ISP report by IADC as of
announcement date
Recent news flow
-- Kuwait completion - On 1 November 2018, ADES completed the
acquisition of twelve land rigs in Kuwait from Weatherford
International. The combined backlog was $600 million from eight
contracted rigs (including options).
Outlook
Trading in Q3 2018 has been in line with expectations with
strong sequential progress.
For the remainder of 2018 we have good revenue visibility
underpinned by the contracted backlog and recently acquired
Weatherford assets in Kuwait, while expecting to complete on the
remaining countries of the Weatherford acquisition before year-end.
The Group therefore has confidence that its full year results for
2018 will meet management's expectations.
Commenting on the Group's performance, Dr. Mohamed Farouk, Chief
Executive Officer of ADES International said:
"ADES has delivered a strong quarter and is performing well in
the second half of 2018 based on higher utilisation rates and the
positive impact of the recent rig acquisitions from Nabors
Industries. I'm very pleased with the progress we are making
against our strategic objectives. 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."
Enquiries
ADES International
Holding
Hussein Badawy
Investor Relations
Officer ir@adesgroup.com +971 4355 0255
Instinctif
+44 (0)20 7457
David Simonson david.simonson@instinctif.com 2020
+44 (0)20 7457
George Yeomans george.yeomans@instinctif.com 2020
+44 (0)20 7457
Sarah Hourahane sarah.hourahane@instinctif.com 2020
About ADES International Holding (ADES)
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle East and Africa, offering onshore
and offshore contract drilling as well as workover and production
services. Its over 2,500 employees serve clients including major
national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil
Company and Sonatrach as well as joint ventures of NOCs with global
majors including BP and Eni. While maintaining a superior health,
safety and environmental record, the Group currently has a fleet of
thirteen jack-up offshore drilling rigs, fifteen onshore drilling
rigs, a jack-up barge, and a mobile offshore production unit
("MOPU"), which includes a floating storage and offloading unit.
For more information, visit investors.adihgroup.com.
Shareholder Information
LSE: ADES INT.HDG
Bloomberg: ADES:LN
Listed: May 2017
Shares Outstanding: 43.8 million
Forward-Looking Statements
This communication contains certain forward-looking statements.
A forward-looking statement is any statement that does not relate
to historical facts and events, and can be identified by the use of
such words and phrases as "according to estimates", "aims",
"anticipates", "assumes", "believes", "could", "estimates",
"expects", "forecasts", "intends", "is of the opinion", "may",
"plans", "potential", "predicts", "projects", "should", "to the
knowledge of", "will", "would" or, in each case their negatives or
other similar expressions, which are intended to identify a
statement as forward-looking. This applies, in particular, to
statements containing information on future financial results,
plans, or expectations regarding business and management, future
growth or profitability and general economic and regulatory
conditions and other matters affecting the Group.
Forward-looking statements reflect the current views of the
Group's management ("Management") on future events, which are based
on the assumptions of the Management and involve known and unknown
risks, uncertainties and other factors that may cause the Group's
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by these forward-looking statements. The
occurrence or non-occurrence of an assumption could cause the
Group's actual financial condition and results of operations to
differ materially from, or fail to meet expectations expressed or
implied by, such forward-looking statements.
The Group's business is subject to a number of risks and
uncertainties that could also cause a forward-looking statement,
estimate or prediction to differ materially from those expressed or
implied by the forward-looking statements contained in this
prospectus. The information, opinions and forward-looking
statements contained in this communication speak only as at its
date and are subject to change without notice. The Group does not
undertake any obligation to review, update, confirm or to release
publicly any revisions to any forward-looking statements to reflect
events that occur or circumstances that arise in relation to the
content of this communication.
Terms and Definitions
Backlog - The total amount payable to the Company, based on firm
commitments represented by signed drilling and services contracts,
during the remaining term of an existing contract plus any optional
client extension provided for in such contract, assuming the
contracted rig will operate (and thus receive an operating day
rate) for all calendar days both in the remaining term and in the
optional extension period.
Recordable Injury Frequency Rate (RIFR) - The number of
fatalities, lost time injuries, cases or substitute work and other
injuries requiring medical treatment by a medical professional per
200,000 working hours
Utilisation Rate - The Company's calculation of its utilisation
rate refers to its measure of the extent to which its assets under
contract and available in the operational area are generating
revenue under client contracts. The Company calculates its
utilisation rate for each rig by dividing Utilisation Days by
Potential Utilisation days under a contract.
Net Debt - Total interest-bearing loans and borrowings minus
cash and cash equivalents.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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