Consolidation at Full Steam

Research evidence excerpt

Consolidation at Full Steam

Update

June 24, 2026 07:40 AM GMT

Morgan Stanley & Co. International plc+MADES Holding | Europe Ricardo Rezende, CFA

Equity Analyst

Consolidation at Full Steam Ricardo.Rezende@morganstanley.comGiulia Faro +44 20 7677-9886

Research Associate

Giulia.Faro@morganstanley.com +44 20 7425-7581

Key Takeaways Sylvia C Richards

ADES acquired five jack-ups from Saipem (3 owned, 2 leased) for $285mn. 4 of Sylvia.Richards@morganstanley.com +44 20 7677-3354

the rigs operate in Saudi Arabia, while 1 has a contract in Mexico.

ADES Holding (2382.SE, ADES AB)

Valuation looks favorable vs. ~$110mn high-spec jack-up value, implying ~13% EEMEA - Oil & Gas | Saudi Arabia

discount to owned assets and not assigning any value to leased rigs. Stock Rating Overweight

Industry View No Rating

Transaction also allows ADES to expand its leadership even further - particularly Price target SAR 24.50

Shr price, close (Jun 23, 2026) SAR 18.20

positive given a favorable backdrop we're currently witnessing. 52-Week Range SAR 19.90- 12.18

Mkt cap, curr (mn) SAR 20,046

Management also noted that Qatar suspended rigs are back in operation; one Net debt (12/26e) (mn)* SAR 16,876

Saudi rig also received a resumption notice. EV, curr (mn)* SAR 38,133

* = GAAP or approximated based on GAAP

Bottom-line: positive. We like ADES' move to consolidate its leadership on shallow

water jack-ups. As shown by recent contract announcements, the market for

offshore jack-ups remains supportive, with ADES being able to place its assets in

different geographies and, in many cases, locking day rates above our expectations.

Valuation also seems to favor ADES. As discussed by our North American colleagues

(The Offshore Drilling Digest), the valuation for a premium jack-up is around