Oil prices of around US$70 per barrel should drive up drive up utilisation and day-rates
Middle East-focused oil and gas rig specialist () expects solid revenue growth in the second half of the year as oil activity picks up.
Turnover dipped 9% in the six months to June to US$79.7mln as ADES carried out remedial work on rigs in Egypt and Saudi Arabia. Even with this disruption, utilisation of ADES rig fleet was 80%. Underlying profits dropped 20% to US$37.8mln, but a one-off gain on acquisitions boosted interim net income by 10.5% to US$21.4mln.
ADES expects the acquisition of 31 onshore rigs from US group Weatherford to conclude by the end of the year, which will double the size of the business.
The Weatherford rigs and three acquired from shallow offshore Nabors during the first half of the year are expected to contribute US$210mln to annual revenues.
With the Weatherford acquisition, the order book will also rise to about US$1.35bn.
Nabors will contribute substantially in the second half of the year, while rates generally are picking up said ADES.
Oil prices of around US$70 per barrel should drive up drive up utilisation and day-rates, with the MENA region expected to capture a significant share of global growth.
Debt at the half year was US$174mln.