Drilling, engineering and technology company KCA Deutag has closed the acquisition of the Kuwait component of Saipem Onshore Drilling’s assets. The acquisition is part of a wider agreement signed in June 2022, under which Saipem sold its onshore drilling assets to KCA Deutag.
The acquisition of the Kuwait component is in addition to previously completed acquisitions of activities in Saudi Arabia, the United Arab Emirates and Africa. The acquisition of the Latin American business along with the platforms in Romania and Kazakhstan is still expected to be completed in the first half of 2023.
“By completing the acquisition in Kuwait, we continue to expand our business in the Middle East, a core market for the group. This allows us to further enhance the brand and continue to deliver accretive value to all stakeholders: employees, customers, investors and the communities in which we live and work,” said Joseph Elkhoury, CEO of KCA Deutag.
“The integration process, including the early realization of synergy, is progressing well as we proactively collaborate with new colleagues to become a team and provide a seamless transition for all our customers” , added.
Elkhoury further noted that despite all the disruptions the group has faced over the past year, it remained focused on disciplined execution and proper capital management. “We expect group EBITDA for the fourth quarter of 2022 to be around $75 million compared to $49 million in the previous quarter, and we ended the year with total cash of $231 million and a net debt of $619 million,” he says.
“We remain optimistic as we carry this positive momentum into 2023 and believe our future results will be much stronger as we witness the strong performance of the newly acquired business and the recent revivals, contract wins and improvements in the core business.” Elkhoury concluded. .
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