25/03/2026 04:02 AST
Oil drilling firm ADES Holding Co. said the suspension of operations at several Gulf Cooperation Council rigs triggered by the ongoing regional conflict will be short-term.
In a statement, the company reaffirmed its commitment to the safety of its personnel and assets, adding that it is working closely with clients and relevant stakeholders to monitor developments and ensure operational readiness.
The update comes amid heightened geopolitical tensions in the Gulf, where escalating conflict between the US-Israel alliance and Iran has disrupted energy operations and raised concerns over the security of key supply routes, including the Strait of Hormuz.
Several GCC energy giants, including the UAE's ADNOC, have recently made temporary adjustments to their output due to the ongoing war, which resulted in the closure of the Strait.
Iran has threatened to attack energy and water facilities in Gulf countries if the US or Israel targets its critical infrastructure.
"In light of the current regional situation, the safety of our personnel and assets remains our highest priority," said Mohamed Farouk, CEO of ADES Holding.
ADES Holding's scale and geographic diversification, with 123 drilling rigs across 20 countries, will help mitigate short-term disruptions from regional tensions, enabling the company to navigate challenges effectively, the statement added.
ADES Holding further stated that its 2026 earnings before interest, taxes, depreciation, and amortization forecast is SR4.50 billion ($1.20 billion) to SR4.87 billion, representing a 33 to 44 percent increase from its 2025 guidance of SR3.39 billion.
"Our extended number of assets, geographic diversification and broader earnings base position us to navigate such developments with discipline, while maintaining confidence in our forward outlook. Our 2026 guidance reflects the stronger visibility we now have across the business and the benefits of our expanded platform following the Shelf Drilling acquisition," said Farouk.
In November, ADES Holding completed the acquisition of Shelf Drilling, Ltd. through a cash merger. The merger brings together a combined fleet of 83 offshore units, including 46 premium units, and 40 onshore rigs, currently operating across 19 nations, up from 13 previously.
"Over the years, we have demonstrated resilience through cycles, expanded selectively into attractive markets, and delivered on the commitments we set for the business. Since listing, we have established a clear track record of providing guidance and executing against it, and we remain confident in our ability to navigate the current environment in a disciplined manner," said Farouk.
Arab News
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