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One of ADES jack-up rigs
ADES Holding Co. announced extending the contract for one of its standard jackup rig - Admarine 657 - currently operating in Saudi Arabia.
The company said in a statement to Tadawul that the total backlog from the extension is estimated at SAR 1.31 billion ($351 million), which reflects a longer extension period than average extension in similar contracts.
For more news on listed companies
The 10-year extension contract is expected to be effective from Q3 2024 after the current contract expires.
Mohamed Farouk, CEO of ADES, said that extending the contract for the Admarine 657 drilling rig reflects renewed confidence in the company’s ability to provide the best safety and operational performance, in addition to enhancing the sustainability of its business in the Kingdom.
The extension of the contract comes at a stage when the market for offshore jackup market is witnessing a severe tightness, he added.
“Such 10-year extension adds a considerable amount of backlog which further supports future revenue growth and extends backlog visibility in line with the group’s strategy,” Farouk said.
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