ADES Expanded Global Offshore Platform Yields Diversification Benefits

Goldman Sachs reiterates a Buy rating on ADES with a SAR 22.90 target, highlighting its leadership in a tightening global offshore jack-up market following the successful integration of Shelf Drilling.

Key Takeaways

• 1.ADES is benefiting from its position as the world's largest global offshore jack-up player in a structurally tightening market.
• 2.The integration of Shelf Drilling is providing diversification benefits, hedging against operational disruptions in the GCC.
• 3.1Q26 Group revenues grew 62.6% YoY to SAR 2.4bn, driven by the Shelf Drilling consolidation and high utilization rates.

Table of Contents

• Takeaways from conference call
• Compelling risk-reward profile leaves valuation screening attractively in light of tight offshore market
• Key focus areas for the name and conference call takeaways
• Structural offshore upcycle opportunity
• Backlog quality, contract awards, and capital structure
• Market commentary in charts
• Expansion of global offshore platform should continue to drive solid performance
• Estimate changes, valuation and risks
• Disclosure Appendix

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