ADES International Holding PLC (LON: ADES) shares have been boosted on Friday afternoon after the firm maintained its 2019 expectations, which came as a relief to shareholders.
ADES International Holding extends oil and gas drilling and production services through its subsidiaries and is a leading service provider in the Middle East and North Africa, offering onshore and offshore contract drilling as well as work over and production services.
ADES shares received a boost of 2.88% to $12.50 on Friday afternoon. 29/11/19 12:39BST.
In the gas and oil sector, the industry has been hit by internal and external shocks.
Firms such as Antofagasta (LON: ANTO) who are a FTSE100 (INDEXFTSE: UKX) listed mining company, have seen their shares crash following political hostility.
Additionally, firms such as Bluejay Mining (LON: JAY) and Thor Mining (LON: THR) have switched to share placing plans in order to raise funds to expand capital projects.
For the three months to the end of September, the Middle East & North Africa-focused oil & gas services provider reported revenue of $121.8 million, more than doubled from $47 million a year before.
The nine month period also saw revenue double from $127 million to $341.7 million.
Profit margins in the quarter were in line with the first half as well, which appeased shareholders which was reflected in the share price movement this morning.
“ADES’ year-to-date performance remains in line with the trends witnessed during the first half of the year. Thanks to optimal utilisation rates and the growing contribution of recently acquired rigs, we continue to deliver significant top-line growth. Our expectations for 2019 are unchanged,” said Chief Executive Officer Mohamed Farouk.
“Overall, I am very pleased with the progress we are making against our strategic objectives and expect the benefits of the recent acquisitions to be more clearly reflected in 2020 as we continue to work towards realizing synergies. ADES is well-positioned to meet future growth opportunities and generate ever greater value for shareholders,” Farouk added.
