ADES Holding, a prominent player in the offshore drilling sector, has announced the temporary suspension of operations for a number of its offshore rigs located in the Gulf Cooperation Council (GCC) region. This decision comes as a precautionary measure in response to escalating regional tensions, prioritizing the safety of personnel and assets above all else.
In a statement released to address the current geopolitical climate, ADES Holding confirmed that “a handful of its offshore rigs” have been temporarily idled. The company stressed that these suspensions are short-term in nature and that it is actively monitoring the situation. ADES is working closely with its clients and relevant stakeholders to ensure operational readiness for a swift resumption of activities once conditions permit.
Despite the temporary operational adjustments, ADES Holding highlighted its robust business model and strategic advantages. The company operates a vast fleet of 123 rigs across 20 countries, a scale and geographic diversification that positions it to effectively manage such short-term disruptions. This broad operational footprint, coupled with a diversified business model, provides a strong foundation for resilience.
Remarkably, ADES Holding has reaffirmed its financial projections, forecasting a significant increase in its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the fiscal year 2026. The company anticipates an EBITDA range of SAR 4.50-4.87 billion (approximately $1.2-$1.3 billion), representing a substantial growth of 33-44% from its FY2025 guidance. This optimistic outlook is underpinned by several factors, including the enhanced performance following the acquisition of Shelf Drilling, the realization of expected synergies, and continued momentum across its international operations. Favorable day-rate dynamics in select international markets are also contributing to this positive forecast.
Dr. Mohamed Farouk, CEO of ADES Holding, commented on the situation, stating, “In light of the current regional situation, the safety of our personnel and assets remains our highest priority. Our extended number of assets, geographic diversification and broader earnings base position us to navigate such developments with discipline, while maintaining confidence in our forward outlook.” He further emphasized the company’s track record of resilience through various market cycles and its confidence in navigating the current environment with discipline.
ADES Holding’s extensive fleet includes 81 offshore jack-up rigs, one offshore jack-up barge, and one mobile offshore production unit (MOPU), in addition to 40 onshore rigs. With a workforce exceeding 11,500 employees, the company provides essential drilling and production services to national and international oil companies across diverse global regions.