ADES (2382) Q3 2024 earnings summary

Executive summary

• Net profit surged 114.2% year-over-year to SAR 606.3 million in 9M 2024, driven by 51.3% revenue growth to SAR 4.63 billion and expanded EBITDA profitability.

• 3Q 2024 set a record for highest quarterly revenue at SAR 1,573 million, up 45.8% year-over-year.

• The group operates 89 rigs across 10 countries, with a leading position in shallow water and onshore drilling, and the largest revenue contribution from Saudi Arabia.

• Strong operational performance with utilization rates at 98% and industry-leading safety metrics (TRIR 0.07).

• Total backlog reached SAR 27.79 billion as of 30 September 2024, providing long-term revenue visibility.

Financial highlights

• 9M 2024 revenue rose 51.3% year-over-year to SAR 4,630 million; 3Q 2024 revenue up 45.8% to SAR 1,573 million.

• EBITDA grew 58.0% year-over-year to SAR 2,303 million for 9M 2024, with margin improving to 49.8%.

• Net profit margin increased to 13.1% in 9M 2024 from 9.3% in 9M 2023.

• Operating cash flow increased 65.2% year-over-year to SAR 2,364 million for 9M 2024.

• Aggregate capital expenditure was SAR 1,824 million, down 38.3% year-over-year.

Outlook and guidance

• FY 2024 EBITDA expected at the upper end of SAR 2.89–3.04 billion guidance, reflecting strong execution and new contract wins.

• Management remains optimistic, citing robust demand, high utilization, and easing inflationary pressures.

• New rig deployments and acquisitions in Southeast Asia and the Middle East expected to drive further growth.

• The group secured an additional USD 3 billion syndicated facility in July 2024 to support expansion plans.