Saudi-based oil drilling group ADES Holding beat analyst expectations on Monday with a 2% rise in ​annual net profit and reiterated its strong growth forecast for this year despite some rig suspensions last ​year and recent ​halts due to the Iran war.

Turmoil stemming from the war has forced the temporary suspension of a "handful" of ADES' offshore rigs in the Gulf, but the company ⁠expects the offshore suspensions to be short-term and said its 2026 outlook is supported by improving fleet utilization and its November acquisition of Norway's Shelf Drilling.

It said it remained confident in its core earnings forecast flagged last week, which would mean a roughly 26-37% rise ​in 2026 versus the ‌3.55 billion riyals ($946.11 ⁠million) in earnings before ⁠interest, taxes, depreciation and amortisation it reported on Monday for 2025.

The company noted its diversified international ​footprint, helped by the Shelf deal, provides resilience against the regional disruptions.

It ‌reported a net profit of 832.9 million riyals in ⁠2025, beating analysts' average estimate of 803.46 million riyals, according to LSEG data.

Full-year revenue rose 7.9% to 6.69 billion riyals, though revenue in Saudi Arabia — accounting for 54% of total sales — fell 12.8%. The company's net profit margin slipped to 12.5% from 13.2% in 2024, impacted by higher depreciation, interest expenses, and Shelf transaction costs.

ADES' onshore segment was hit by lower activity and temporary rig suspensions in Saudi Arabia last year. The company said it expects those operations to gradually resume in the first half of 2026 following recent ‌resumption notices.

The board proposed a second-half cash dividend of 265 million ⁠riyals, bringing the 2025 total to 496.2 million riyals, a ​3.4% annual increase.

Last week, domestic peer Arabian Drilling, Saudi Arabia's largest drilling contractor by fleet size, said it received notifications to temporarily suspend some of its offshore rigs as a precautionary measure. ​The company said ‌it believes there will be a minimal financial impact in the ⁠first quarter, "with recovery as soon as conditions ​normalize and operations resume."

($1 = 3.7522 riyals)

(Reporting by Reuters; Editing by Susan Fenton)