ADES (2382) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 49% year-over-year to SAR 4,544.1 million, driven by expanded operations and the Shelf Drilling acquisition.

• EBITDA increased 29.2% year-over-year to SAR 2,164.0 million, with a margin of 47.6% despite lower margins from Shelf.

• Net profit attributable to equity holders for the six-month period was SAR 365 million, compared to SAR 383 million in the prior year, reflecting higher finance and administrative costs and non-recurring insurance expenses.

• The acquisition of Shelf Drilling Limited in November 2025 significantly expanded the offshore fleet and geographic reach.

• Total backlog stood at SAR 34.67 billion with a weighted average contract tenor of 4.54 years, supporting long-term revenue visibility.

Financial highlights

• Gross profit for the six months was SAR 1,607 million, up from SAR 1,183 million year-over-year.

• Operating cash flow before working capital rose 21.1% year-over-year to SAR 1,999.6 million in 1H 2026.

• Total assets stood at SAR 31,678 million as of 30 June 2026, with equity of SAR 6,936 million.

• Earnings per share for the six months were SAR 0.33, compared to SAR 0.35 year-over-year.

• Dividends of SAR 0.24 per share (SAR 265 million) were paid during the period.

Outlook and guidance

• Full-year 2026 EBITDA guidance reiterated at SAR 4.50–4.87 billion, supported by backlog and new contract commencements.

• Management expects margin recovery as Shelf integration progresses and synergies are realized.

• Temporary disruptions from regional geopolitical tensions are expected to have limited impact due to the Group’s diversified footprint; most affected rigs have resumed operations.

• A proposed interim cash dividend of SAR 220.83 million (SAR 0.20 per share) was announced post-period.

• The acquisition of Saipem's shallow-water drilling activities in Saudi Arabia is expected to further strengthen the offshore fleet.