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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting the accelerating pace of M&A activity within the Saudi energy services sector, Italian contractor Saipem has agreed to divest its shallow-water offshore drilling business in the Kingdom. The operations will be acquired by ADES Holding for a total consideration of $285 million. This deal represents a strategic exit for Saipem from its shallow-water assets in the region while significantly bolstering ADES's operational capacity.
This acquisition comes as Gulf oilfield service providers undergo major expansions; ADES Holding reported a 111% year-on-year surge in net profit during Q1 2024 according to its financial filings. The deal strengthens ADES's competitive position against regional peers like Arabian Drilling, which recently reported record Q1 revenues of 1.03 billion riyals per market data, highlighting the robust demand for drilling services in the Kingdom.
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Sign InRegarding market performance, ADES shares (2382.SR) closed at 18.2 SAR as of June 23, 2026, after reaching an intraday high of 18.67 SAR. Traders are monitoring support levels near 18.12 SAR, the recent daily low, for potential consolidation. Looking ahead, the market will focus on the EIA Weekly Petroleum Report scheduled for release today, which may influence broader sentiment across the energy sector.