ADES Holding, one of the world’s leading oil and gas drilling and exploration companies, has released a comprehensive strategic update on its operations amidst current regional tensions. Despite the challenges facing the region, the company’s financial outlook reveals a significant increase in profits , with earnings before interest, taxes, depreciation, and amortization (EBITDA) expected to reach approximately SAR 4.87 billion by fiscal year 2026. This announcement reflects the strength of the company’s financial position and its ability to adapt to geopolitical and economic changes.
Expansion trajectory and the impact of regional tensions on the drilling sector
Founded as a regional drilling services provider, ADES quickly expanded its operations to become a major player in the global energy market, particularly following its successful listing on the Saudi Stock Exchange (Tadawul). In its recent statement, the company explained that some of its offshore drilling rigs in the GCC region have been temporarily suspended. This measure is a direct response to ongoing regional tensions that are impacting supply chains and shipping. However, based on current data, the Group's senior management confirms that these suspensions are temporary and short-term, and will not hinder its strategic growth trajectory. The company remains firmly committed to ensuring the safety of its employees and assets as its top priority, while working closely with clients to ensure immediate operational readiness once the reasons for the suspension have been resolved.
Addis Holdings' profit growth drivers and 2026 outlook
Despite the current challenges, the executive management is pleased to announce its optimistic financial guidance. ADES Holding's EBITDA for fiscal year 2026 ranges between SAR 4.50 billion and SAR 4.87 billion. This represents a significant increase of 33% to 44% compared to the upper end of the fiscal year 2025 guidance of SAR 3.39 billion. This optimism stems from the Group's size and vast geographic diversification; it owns a massive fleet of 123 drilling rigs operating across 20 countries worldwide. This geographic and operational diversification provides the company with significant resilience to short-term disruptions, underpinned by a robust and sustainable business model.
The economic dimensions of the company's acquisitions and their regional and international impact
The company’s positive outlook is underpinned by a number of strategic factors that strengthen its position in the energy markets. A key factor is the improved visibility into the performance of Shelf Drilling’s assets following its successful acquisition, which has increased confidence in achieving the anticipated combined operating savings. Regionally and internationally, the company continues to benefit from its expanding geographic footprint and encouraging activity in the volume of global tenders. The sector is also experiencing a steady rise in utilization rates, which will positively impact daily rental rates in several select international markets. Simultaneously, the group benefits from the positive contribution of its production model activities, which are directly supported by stable global oil prices and growing customer interest in enhancing the productivity of aging fields to ensure the sustainability of global energy supplies.
