The company is committed to putting in place the necessary debt arrangements to bolster its already strong cash position following its flotation
Oil and gas drilling services provider () expects to deliver continued organic growth in 2018 after a solid performance in 2017.
Revenue in 2017 rose 17.5% to US$157.6mln from US$134.1mln in 2016.The utilisation rate in 2017, which measures usage of the company’s fleet of rigs, was 78%. Over a six-year period, ADES has maintained an average utilisation rate of 90%, which is above the current average jack-up rig utilisation rate of 75% in the Middle East – the area in which ADES operates.
Adjusted underlying earnings (Ebitda) rose 11.2% to US$80.32mln from US$72.23mln in 2016.
At the end of the year, the company had cash and cash equivalents of US$137.0mln; net debt stood at US$75.5mln.
In the current year, the company expects several of the company’s strategic efforts in 2017 to bear fruit, including the commencement of new contracts and the securing of new tenders across the Middle East and North Africa (MENA).
The Nabors acquisitions, once completed, will add to the company’s revenue and earnings, and as a result of the expected timing of completion of the deal the company expects revenues will be weighted materially towards the second half of the year.
The company said it is committing to putting in place the necessary debt arrangements to secure and support its current operations and to provide funds for further expansion.
Management is actively evaluating acquisition opportunities in the MENA region.
“In our first full-year results following our IPO on the in May 2017, ADES has successfully sustained its growth trajectory and delivered a strong operational and financial performance,” said Dr Mohamed Farouk, the chief executive officer of ADES International.
“ADES’s low-cost business model saw us maintain Ebitda margins in excess of 50% and deliver a net profit growth rate of approximately 17% year-on-year. Most importantly, we continued to set the benchmark for service quality and safety performance, with an RIFR rate of 0.41, well below the IADC worldwide standard rate of 0.56 as at 31 December 2017,” Dr Farouk added.