ADES Holding Co (ADES AB): Reduce: Still in consolidation mode

Research evidence excerpt

ADES Holding Co (ADES AB): Reduce: Still in consolidation mode

25 June 2026

ADES Holding Co (ADES AB) EquitiesEnergy Equipment &

Services

Reduce: Still in consolidation mode Saudi Arabia

◆ ADES announces the acquisition of Saudi Arabian Saipem,

MAINTAIN REDUCE

which could provide slight support to 2026 EPS…

◆ …after weak utilisation in 2Q 2026, but ADES’s multiples TARGET PRICE (SAR) PREVIOUS TARGET (SAR)

remain rich, in our view 13.80 13.60

◆ Raise TP to SAR13.80 (from SAR13.60), retain Reduce rating SHARE PRICE (SAR) UPSIDE/DOWNSIDE

18.66 -26.0%

Another deal: ADES announced yesterday a USD285m acquisition of Saudi Arabian (as of 24 Jun 2026)

Saipem, which owns three premium jack-up rigs (two of which are currently operational MARKET DATA

in the KSA and one in Mexico) and operates two leased premium rigs in the KSA. Market cap (SARm) 21,068 Free float 30%

Market cap (USDm) 5,612 BBG ADES AB

The four rigs operating in the KSA are on long-term contracts expiring in 2030-33 and 3m ADTV (USDm) 11 RIC 2382.SE

none of them have been suspended in 2026. The one in Mexico is on a contract until

FINANCIALS AND RATIOS (SAR)July 2026, following a contract suspension in the KSA in 2024, with the remaining

Year to 12/2025a 12/2026e 12/2027e 12/2028e

contract duration of over two years. ADES expects the deal to be closed in 3Q 2026 HSBC EPS 0.72 0.74 1.08 1.39

and to add SAR3.8bn backlog (+11% vs. ADES’s 1Q26 backlog). Taking into account HSBC EPS (prev) 0.72 0.73 1.06 1.36

Change (%) 0.0 1.4 2.0 2.3

the estimated contribution of contracts with respect to leased rigs, the deal value Consensus EPS 0.71 0.92 1.29 1.51

PE (x) 25.8 25.3 17.2 13.4implies USD85-90m valuation per owned rig, on our estimates, slightly above the Dividend yield (%) 2.4 2.4 3.5 4.5