Core Viewpoint - ADES Holding reported a 2% increase in annual net profit for 2025, exceeding analyst expectations, and maintained a positive growth forecast for 2026 despite challenges from the Iran war and rig suspensions [1][4]. Financial Performance - The company achieved a net profit of 832.9 million riyals in 2025, surpassing the average analyst estimate of 803.46 million riyals [4]. - Full-year revenue rose by 7.9% to 6.69 billion riyals, although revenue from Saudi Arabia, which constitutes 54% of total sales, declined by 12.8% [4]. - The net profit margin decreased to 12.5% from 13.2% in 2024, influenced by higher depreciation, interest expenses, and costs associated with the Shelf transaction [4]. Growth Outlook - ADES expects the offshore rig suspensions to be temporary and is optimistic about its 2026 core earnings, projecting a 26-37% increase compared to the 3.55 billion riyals ($946.11 million) reported for 2025 [3][8]. - The company’s diversified international operations, bolstered by the acquisition of Norway's Shelf Drilling, are anticipated to provide resilience against regional disruptions [3]. Dividend and Operations - The board proposed a cash dividend of 265 million riyals for the second half of 2025, raising the total dividend for the year to 496.2 million riyals, reflecting a 3.4% annual increase [5]. - ADES's onshore segment faced challenges due to lower activity and temporary rig suspensions in Saudi Arabia, but operations are expected to gradually resume in the first half of 2026 following recent resumption notices [5].