ADES (2382) EFG Conference presentation summary

Market and industry overview

• Offshore and onshore drilling demand remains robust, with oil and gas projected to comprise 53% of the global energy mix by 2050, supporting long-term demand sustainability.

• Offshore jackup rig utilization rates are tight, with premium units at 91% and standard units at 88% as of January 2025.

• Significant attrition in the global jackup fleet, with 30% of rigs over 30 years old and limited new builds, tightening supply.

Strategic positioning and operational highlights

• Operates 91 rigs across 12 countries, with a balanced focus on mature markets (KSA, Kuwait, Egypt, Algeria) and growth markets (Southeast Asia, West Africa).

• Achieved a 97.7% utilization rate in FY 2024 and expanded into Indonesia, Thailand, Malaysia, and Nigeria.

• Secured major long-term contracts in Thailand, Qatar, Nigeria, and Brazil, enhancing backlog and cash flow visibility.

• Maintains a best-in-class safety record with a TRIR of 0.06, significantly below industry averages.

Financial performance and growth

• FY 2024 revenue rose 43.1% to SAR 6.2bn, EBITDA increased 42% to SAR 3.0bn, and net profit surged 80.5% to SAR 816mn.

• Total backlog reached a record SAR 28.27bn, with 75.3% from offshore and over 85% from GCC countries.

• Revenue growth driven by expanded rig deployments, especially in KSA (Aramco mega project), Kuwait, and Southeast Asia.

• EBITDA margin remained strong at 49%, supported by disciplined cost management and higher daily rates.

• Free cash flow increased 41.9% to SAR 2.6bn, with capex (excluding acquisitions) down 41.3% to SAR 2.4bn.