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ADES, an oil & gas drilling and production services provider in the Middle East and North Africa, saw its net profit decline to $11.0m from $18.2m as net profit margins shrunk to 5% from 23%.
Revenue grew to $219.9m from $79.7m as announced in the company's half year report for the period ending 30 June 2019.
Revenues grew due to an organic growth of the pre-acquisition business, and increasing contributions from the newly acquired rigs which contributed 62% of consolidated revenue for the period.
There was a steady ramp up of utilisation rates to 95% compared to 80% in H1 2018.
Commenting on the results, Dr. Mohamed Farouk, chief executive officer of ADES International Holding said:
'The first half of 2019 saw Group revenue grow almost threefold and become increasingly diversified across key regional markets with a good balance of off- and on-shore activities.'
'ADES stands today with an asset base of over 50 rigs, the majority of which were acquired with a contracted backlog and short payback periods, and we are enjoying today a substantial and long-dated backlog of US$ 1.5 billion with an average maturity of 4.2 years.'
'This low-risk approach to acquisitions coupled with ADES's lean cost structure, cultural alignment and adherence to global best practices, provides a solid platform for organic growth and positions the Group as a regional champion.'
At 10:00am: (LON:ADES) ADES International Holding Ltd share price was -0.5p at 12.4p