Saudi oil driller ADES expects 44% earnings rise despite Iran war
- Top oil exporter Saudi Aramco has cut its oil output by 20% from two offshore fields and rerouted 7 million barrels per day
Saudi Arabia’s oil drilling group ADES International Holding expects its 2026 core earnings to rise by up to 44%, even as the U.S.-Israeli war on Iran forced the suspension of some of its offshore rigs in the Gulf, the company said on Wednesday.
The bullish forecast, which ADES pinned on its scale and geographic diversification - evidenced by 123 rigs deployed across 20 countries - comes as the war disrupted shipping through the Strait of Hormuz, rattling global markets and threatening economic stability.
“We remain confident in our ability to navigate the current environment in a disciplined manner,” Chief Executive Mohamed Farouk said in a statement.
ADES announced a guidance range for its 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) of between 4.5 billion and 4.87 billion riyals ($1.2 billion-$1.3 billion), or an increase of 33% to 44% from its 2025 upper-end guidance of 3.39 billion riyals.
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The company said it believes the suspension of a “handful” of its offshore rigs in the Gulf Cooperation Council (GCC) region - grouping Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain - will be short-term.
Top oil exporter Saudi Aramco has cut its oil output by 20% from two offshore fields and rerouted 7 million barrels per day of its crude to the Red Sea port of Yanbu. Qatar has halted the production of liquefied natural gas, as has the UAE while also cutting its oil output along with Kuwait and Bahrain.
ADES said its strong outlook is supported by expected synergies from its acquisition of Norway’s Shelf Drilling, an ongoing uptick in utilisation, and favourable day-rates in certain international markets.
“Over the years, we have demonstrated resilience through cycles, expanded selectively into attractive markets, and delivered on the commitments we set for the business,” Farouk said, adding that safety of personnel and assets remains the highest priority.
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