ADES (2382) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of SAR 6.2bn in FY 2024, up 43.1% year-over-year, with EBITDA rising 42.0% to SAR 3.0bn and net profit up 80.5% to SAR 816mn.

• Maintained high operational utilization at 97.7% and expanded into new markets including Indonesia, Thailand, Malaysia, and Nigeria.

• Backlog reached an all-time high of SAR 28.27bn, driven by contract renewals and new awards, with over 85% from GCC countries.

• Successfully redeployed all six suspended rigs in KSA to new contracts across Qatar, Thailand, Egypt, and Nigeria.

Financial highlights

• Revenue increased to SAR 6,199mn from SAR 4,332mn in FY 2023 (+43.1%); EBITDA rose to SAR 3,037mn (+42.0%), maintaining a 49.0% margin.

• Net profit surged to SAR 816mn (+80.5% year-over-year), with net profit margin improving to 13.2%.

• Operating cash flow before working capital changes grew 50.6% to SAR 3,168mn.

• Free cash flow increased 41.9% to SAR 2,593mn; CAPEX (excluding Vantage acquisition) declined 41.3% to SAR 2,376mn.

• Group equity rose 13.2% to SAR 6.5bn.

Outlook and guidance

• FY 2025 EBITDA guidance set at SAR 3.28–3.39bn, implying 8–12% organic growth year-over-year.

• Board approved a 2H-2024 dividend of SAR 242.2mn, representing 60% of 2H net profit.