ADES (2382) Q1 2025 earnings summary

Executive summary

• Operates 91 rigs across 12 countries, with recent expansion into Nigeria and Brazil, and a backlog of SAR 26.9 billion as of March 31, 2025.

• Achieved a 98% utilization rate in 1Q 2025, maintaining world-class safety standards with a TRIR of 0.19, outperforming industry averages.

• Secured new long-term contracts and extensions in Saudi Arabia, Egypt, Brazil, and Nigeria, reinforcing backlog and revenue visibility.

• Distributed SAR 242.2 million in dividends in 1Q 2025, related to 2H 2024 profits.

• Total comprehensive income dropped to SAR 170.8 million, mainly due to a net loss on cash flow hedges.

Financial highlights

• 1Q 2025 revenue was SAR 1,470.1 million, down 4.0% year-over-year; EBITDA rose 8.4% to SAR 816.3 million, with margin up to 55.5%.

• Net profit declined 2.1% year-over-year to SAR 196.7 million, with net profit margin increasing to 13.4%.

• Operating cash flow before working capital changes grew 2.2% to SAR 801.9 million.

• Free cash flow increased 4.1% year-over-year; total capex fell 38.6% to SAR 475.7 million, focused on rig upgrades and new equipment.

• Group equity decreased 1.1% to SAR 6.47 billion, reflecting dividend payments and reserve movements.

Outlook and guidance

• Full-year 2025 EBITDA is expected in the range of SAR 3.28–3.39 billion, implying 8–12% organic growth year-over-year.

• Management expects acceleration in revenue and profitability as new rig deployments ramp up by Q4 2025.

• Capital commitments of SAR 196 million remain for ongoing projects.