- Oil services group Ades said annual profits jumped sharply on higher revenue owing to contributions from newly acquired rigs and a higher utilisation rate.

For 2018, profit before tax rose 78% to $79.4m and revenue rose 30.4% to $205,563

Earnings (EBITDA) increased by 25.8% year-on-year to $101.1m in 2018 from $80.3m in 2017.

The number of operating rigs more than doubled in 2018 to 28 rigs compared to 12 rigs in 2017. The utilisation rate for 2018 stood at 85% compared to 78% in 2017.

The backlog at year end stood at about $1.2bn, compared to $427m in 2017, growing almost threefold.

The company said it expected material top-line growth in 2019 would be driven primarily by the full-year impact of the Nabors and Weatherford acquisitions.

'The current year has started with a strong and growing order backlog that stood at c.USD 1.5 billion as at February 2019, new and renewed contracts in KSA and our first contract for deep-water drilling services in the Egyptian Mediterranean,' said Dr. Mohamed Farouk, Chief Executive Officer of ADES International.

'Our focus in 2019 will be on extracting synergies from the acquisitions and the integration of the Weatherford assets, tendering activity and maintaining excellent customer service and asset utilisation. ADES continues to maintain a strong balance sheet which provides headroom to invest in organic development and appropriate acquisition opportunities as they arise.'

'The Board has confidence in the year ahead and in the Group's medium-term prospects.'

At 8:25am: [LON:ADES] ADES International Holding Ltd share price was +0.08p at 13.78p

Story provided by