Middle East crisis brings ‘temporary suspensions’ to some ADES rigs

March 25, 2026, by Melisa Cavcic

ADES International, a subsidiary of ADES Holding Company, which is part of Saudi Arabia-headquartered ADES Group, has confirmed suspensions of operations for multiple rigs in its fleet as a result of the ongoing conflict between the U.S.-Israel alliance and Iran in the Middle East.

In light of the ongoing regional situation, ADES provided an update on its operations, underlining that “a handful of its offshore rigs” in the Gulf Cooperation Council (GCC) region recently received temporary suspensions due to the regional tensions.

While the company believes these suspensions are short-term in nature, it remains firmly committed to the safety of its personnel and assets, which is its highest priority, while working closely with clients and relevant stakeholders to monitor developments and ensure operational readiness.

The Saudi drilling player’s scale and geographic diversification, with 123 rigs deployed across 20 countries, are perceived to allow it to withstand such short-term disruptions underpinned by its diversified business model.

Despite the ongoing situation, ADES has disclosed its FY2026 EBITDA guidance range of SAR 4.50-4.87 billion (around $1.2-$1.3 billion), representing an increase of 33-44% from the FY2025 upper-end guidance of SAR 3.39 billion ($904 million), reflecting the firm’s increased visibility on earnings drivers across its expanded platform and continued confidence in the resilience of its diversified business model.

The company’s 2026 guidance is seen as being supported by several factors that have strengthened its forward outlook, including improved visibility on the performance of Shelf Drilling, following the acquisition that occurred last year, increased confidence in the realization of expected synergies, and continued momentum across its international platform.

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Dr. Mohamed Farouk, CEO of ADES Holding, commented: “In light of the current regional situation, the safety of our personnel and assets remains our highest priority. 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. The guidance implies solid year-on-year growth and is supported by greater clarity on the earnings profile of the enlarged Group and the conversion of identified synergies into financial performance.”

The rig owner claims to be benefiting from the diversification of its operating base and broader geographic footprint, alongside encouraging tender activity, an ongoing uptick in utilization driven by the current tendering pipeline, and favorable day-rate dynamics in selected international markets.

In addition, the company emphasizes that it continues to see positive contribution from its production model activities, which are benefiting from a supportive oil price backdrop and continued customer focus on brownfield production optimization.

Dr. Farouk added: “At the same time, we continue to see positive contribution from our brownfield production model activities, alongside encouraging momentum across a number of international markets where demand remains supportive.

“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.”

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ADES operates an offshore jack-up fleet encompassing 81 offshore jack-up rigs, out of which 46 are premium units, one offshore jack-up barge, and one mobile offshore production unit (MOPU), in addition to 40 onshore rigs.

With a workforce of more than 11,500 employees, the firm delivers drilling and production services to national and international oil companies across the Middle East, Southeast Asia, India, West Africa, the Mediterranean, and the North Sea.