- Oil services group Ades said first-quarter revenues jumped sharply, driven by a steady 'ramp up' of utilisation rates and the increasing contribution from acquisitions made last year.

For the three months ended 31 March, revenue increased to $108.m from $ 41.2m as utilization rate grew to 92% from 77%.

Cash and cash equivalents decreased to US$ 23.6m at the end of the quarter from US$ 130m, giving a net debt of $533.2m.

The decrease in cash was driven by the completion of the Weatherford transaction in Algeria and Iraq for US$ 72m and planned capital expenditure associated with the acquisitions, the company said.

'We delivered a strong operational performance in the first quarter of the year, significantly accelerating revenue growth which increased by almost threefold compared to Q1 2018. Our results were supported by the steady ramp up of utilisation rates and the increasing contribution from the 2018 acquisitions,' said Dr. Mohamed Farouk, Chief Executive Officer of ADES International.

The company completed a US$325m bond offering and extended its KSA facility with a US$ 144m top-up. Together, these facilities 'have strengthened our balance sheet and provide ample liquidity for our capital expenditure requirements,' the company added.

Looking ahead, the company said it was trading in line with current expectations for 2019 with 'strong revenue visibility underpinned by the contracted backlog.'

At 8:52am: [LON:ADES] ADES International Holding Ltd share price was -0.05p at 14.2p

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