ADES: Q2 First Take: Results in line with expectations, impact of rig suspensions expected to fade through 2026, FY guidance maintained, H1 divy of 20c/share announced

研报英文原文证据摘录

J P M O R G A N

CEEMEA Equity Research

10 August 2026

ADES

Q2 First Take: Results in line with expectations, impact

of rig suspensions expected to fade through 2026, FY

guidance maintained, H1 divy of 20c/share announced

Overweight

2382.SE, ADES AB

Price (09 Aug 26):SRls17.55

Price Target (Dec-27):SRls22.20

Our Take: ADES Q2 results were largely in-line with expectations with net

income +5% vs JPM -4% vs Bloomberg. ADES suffered the full effect of rig

suspensions in Q2, and although the impact was offset to some degree by higher

oil price related revenues from Egyptian brownfield contracts we estimate the net

impacat on EBITDA was ~ SAR 140m. Higher insurance costs also impacted

earnings and we estimate net income would have been closer to SAR 260m without

SOH related impacts. Fortunately, all the suspended rigs are now back in action in

Qatar and two rigs have been recalled in KSA. We expect further rig recalls in KSA

and for earnings momentum to pickup supported by announced jackup contracts

(Nigeria, Thailand, N Sea etc), ongoing synergies from the Shelf transaction and

also from the recently announced intention to purchase Saipem’s shallow water

business in KSA (closure expected in Q3). ADES re-iterated 2026 guidance of

SAR 4.50 billion to SAR 4.87 billion (JPMest SAR 4.7bn) and also announced an

H1 dividend of 20c/share (JPM 2026 dividend est 0.58c/share). We rate ADES OW

and continue to see it as well placed to benefit from a tight jackup market.

Noteworthy Areas: ADES Q2 offshore revenue was SAR 1803m vs JPMe

SAR 1,835m while onshore was SAR 350 m vs JPMe SAR 355m. This brought

total revenue to SAR 2153m; -2% vs JPMe and -2% vs BBG cons. Secondquarter performance reflected the fuller impact of temporary regional offshore

rig suspensions and elevated conflict-related insurance costs; however,

management continues to view these pressures as temporary and event-driven

rather than demand-driven. All previously suspended rigs in Qatar have

resumed operations, while the ADES has also received resumption notices for

two offshore rigs in Saudi.

Offshore gross profit/margin in Q1 was SAR 1,045m/58% vs JPMe SAR

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