Riyadh – ADES Holding Company received, on 7 February 2024, an extension for three of its offshore jack-up rigs operating in Egypt, according to a bourse filing.

The rigs were contracted by the General Petroleum Company (GPC), which notified the group of a two-year extension for the Admarine III and Admarine VI contracts, as well as a one-year extension for the Admarine V contract.

ADES Holding indicated that the extensions will be executed in the coming weeks following the approval of the Egyptian General Petroleum Corporation (EGPC).

The Saudi firm added that it will further boost its position in the Egyptian market and add visibility to the business with a total estimated backlog of nearly SAR 450 million (around $120 million).

It is worth highlighting that the extension comes with a double-digit percentage increase in daily rate compared to the group’s current average rates in Egypt, which reflects the current market environment for the jack-up industry.

Mohamed Farouk, CEO of ADES Holding, said: “The renewals not only cement our presence and leadership in the important Egyptian market but also replenish our backlog at higher daily rates – reflecting the current tight market conditions for offshore jack-ups – and strengthen business and cash-flow visibility.”

In the first nine months (9M) of 2023, the Tadawul-listed firm logged net profits after Zakat and tax valued at SAR 283 million, an annual jump of 60.80% from SAR 176 million.

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