ADES International Holding ADES Announces 3rd Quarter Results (0703Y)

TIDMADES

RNS Number : 0703Y

ADES International Holding

01 December 2017

For the purpose of the Transparency Directive the Home Member state of the issuer is the United Kingdom.

ADES International Holding Ltd

3Q2017 Operational Update

London, 1 December 2017

ADES International Holding Ltd Results for the nine-month period ended 30 September 2017

(London & Dubai, 1 December 2017) ADES International Holding ("ADES" or "the Group"), the London-listed company providing offshore and onshore oil and gas drilling and production services in the Middle East and Africa through its subsidiaries, announces today its operational update for the nine-month period ended 30 September 2017. The financial information included below is unaudited.

Highlights

Since ADES was admitted to trading on the main market of the London Stock Exchange in May 2017, successfully raising USD 170 million of primary gross proceeds, the Company has secured a number of lucrative new contracts, renewals and partnerships in line with its strategy of targeting optimised cost structures within its core MENA markets.

Operational Highlights

   --    3Q2017 utilisation(1)  rate recorded 77%, maintaining a five-year average of 90%. 

-- Backlog(2) as of 30 September 2017 of USD 401.7 million, excluding the recently awarded four-year contract for ADMARINE III.

-- Achieved a Recordable Injury Frequency Rate ("RIFR") of 0.50, below the IADC worldwide standard rate of 0.56.

-- Bidding activity remains strong with a number of tenders expected to close in the next three months.

Financial Highlights

-- Revenues for the nine-month period ended 30 September 2017 were approximately USD 119 million, a 34% increase YoY while maintaining stable margins.

   --   Cash and Cash Equivalents stood at USD 148.5 million(3) , giving a Net debt of USD 73 million. 

-- The Group maintains its guidance for year-end results with regards to revenue growth, normalised net profit and net profit margin.

(1) Utilisation rate is calculated based on assets under contract. Lower utilisation rate during the quarter ended 30 September 2017 as compared to the previous quarter was owing to upgrade works performed during 2017 on ADMARINE II, ADMARINE VI, ADMARINE 261 and ADMARINE 266.

(2) "Backlog" is defined as the total amount payable to the Group during the remaining term of an existing contract plus any optional client extension provided for in such contract, assuming the contracted rig will operate (and thus receive an operating day rate) for all calendar days both in the remaining term and in the optional extension period. This calculation assumes that the client will exercise its option to extend its existing contract at the current day rate and under the contracted terms regarding currency of payment. Backlog also includes move fees and lump sum mobilisation and demobilisation payments as applicable under the contract.

(3) Cash and Cash Equivalents include short-term investments in treasury bills.

Commenting on the Company's performance, Dr. Mohamed Farouk, Chief Executive Officer of ADES International said:

"Our operational performance for the first nine months of 2017 has underpinned our strong outcome for the year. ADES was able to secure exclusive marketing and joint venture agreements and contract awards and renewals, reflecting its ability to capitalise on the challenging industry backdrop that has prevailed for much of the past three years.

Since the close of the nine-month period, we have announced a Joint Venture Agreement with leading contractor Vantage Drilling to expand our service offering into deep water drilling in Egypt's Mediterranean Basin and have been awarded a new four-year contract for ADMARINE III with Egyptian oil company, GPC. We also continue to review and make progress on acquisition opportunities and will update shareholders in due course.

We remain confident in our ability to deliver revenue growth and normalised net profit that are in line with our expectations for the full-year results, with upgrade works on a number of rigs completed in 3Q2017. Heading into 2018, our focus will be to deploy funds raised from our IPO on attractive acquisitions, bring newly awarded contracts online while continuing to leverage our flexible business model and lean cost structure to deliver exceptional shareholder value."

Enquiries

 
  ADES International 
   Holding 
  Hussein Badawy 
  Investor Relations 
   Officer                [e-mail]                             [phone] 
 
  Instinctif 
                                                                       +44 (0)20 
  David Simonson                    [e-mail]      7457 2020 
                                                                       +44 (0)20 
  Laura Syrett                      [e-mail]        7457 2020 
                                                                       +44 (0)20 
  George Yeomans                    [e-mail]      7457 2020 
 
 

About ADES International Holding (ADES)

ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and Africa, offering onshore contract drilling as well as workover and production services in Egypt, Algeria and Saudi Arabia. The company is pre-qualified in markets including Egypt, Saudi Arabia, Algeria, India, Mexico and the Saudi-Kuwaiti Neutral Zone. Its over 1,200 employees serve clients including major national oil companies ("NOCs") such as Saudi Aramco and Sonatrach as well as joint ventures of NOCs with global majors including BP and Eni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of nine jack-up offshore drilling rigs, three onshore drilling rigs, a jack-up barge, and a mobile offshore production unit ("MOPU"), which includes a floating storage and offloading unit.

The Group is the largest offshore drilling operator in Egypt by number of rigs. investors.adihgroup.com

Shareholder Information

LSE: ADES INT.HDG

Bloomberg: ADES:LN

Listed: May 2017

Shares Outstanding: 42.2 million

Forward-Looking Statements

This communication contains certain forward-looking statements. A forward-looking statement is any statement that does not relate to historical facts and events, and can be identified by the use of such words and phrases as "according to estimates", "aims", "anticipates", "assumes", "believes", "could", "estimates", "expects", "forecasts", "intends", "is of the opinion", "may", "plans", "potential", "predicts", "projects", "should", "to the knowledge of", "will", "would" or, in each case their negatives or other similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements containing information on future financial results, plans, or expectations regarding business and management, future growth or profitability and general economic and regulatory conditions and other matters affecting the Group.

Forward-looking statements reflect the current views of the Group's management ("Management") on future events, which are based on the assumptions of the Management and involve known and unknown risks, uncertainties and other factors that may cause the Group's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The occurrence or non-occurrence of an assumption could cause the Group's actual financial condition and results of operations to differ materially from, or fail to meet expectations expressed or implied by, such forward-looking statements.

The Group's business is subject to a number of risks and uncertainties that could also cause a forward-looking statement, estimate or prediction to differ materially from those expressed or implied by the forward-looking statements contained in this prospectus. The information, opinions and forward-looking statements contained in this communication speak only as at its date and are subject to change without notice. The Group does not undertake any obligation to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this communication.

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December 01, 2017 02:01 ET (07:01 GMT)