Enersol Acquires Majority Stake in NTS AMEGA
ADNOC Drilling Company and Alpha Dhabi Holding on Tuesday announced that their joint venture (Enersol) has agreed to acquire a 51% equity stake in the UAE-based NTS AMEGA for a consideration of approximately $58 million (excluding transaction fees, expenses and completion adjustment), making Enersol the majority equity holder.
Alpha Dhabi acquired a 51% equity stake in NTS in October 2023 and Enersol has now agreed to acquire the same 51% equity stake at the same valuation. The transaction completion remains subject to necessary regulatory approvals and closing adjustments, after which the NTS stake will be formally transferred to Enersol.
NTS AMEGA is a leading global provider of advanced manufacturing, complex tool repair and rental solutions for the Oil and Gas sector. Headquartered in the UAE, NTS has strategically located support hubs in hubs in the US, Canada, Saudi Arabia, Singapore, and Norway.
NTS provide a range of solutions for technically challenging processes in the drilling industry to improve efficiency and reduce costs. This includes high tolerance manufacturing of complex rotary steerable heads, measuring / logging collars, carriers and accessories, drilling tools, topside, subsea, and process system components.
These specialised repair processes are used to extend the life and availability of measuring while drilling, logging while drilling, non-magnetic drill collars, and other drilling accessories.
NTS has demonstrated strong financials in FY-2023, reporting revenue exceeding $120 million, a robust EBITDA margin, and a free cash flow yield of over 10%. This presents Enersol’s shareholders with a significant value proposition that can be unlocked by NTS’s healthy profitability, attractive valuation multiples, and strong cash flow generation.
Enersol’s Second Acquisition
This marks the second acquisition announced by Enersol following its transaction to acquire a 67.2% controlling stake, subject to regulatory approvals, in Gordon Technologies, a leading provider of measurement while drilling (MWD) technology to the oil and gas industry.
The acquisition of NTS is aligned with Enersol’s strategic vision to become an Oilfield Services technology-centric investment platform, where it is actively advancing plans to acquire and invest in multiple businesses to create a scalable technology ecosystem.
The goal is to create a technology-powered platform that will enhance market value by providing greater access to GCC markets and improve operational efficiencies through the application of advanced technology to existing operations.
Moreover, this acquistion will be instrumental in providing scalable innovative technologies to Turnwell Industries, the recently established company focused on unlocking the UAE’s world-class unconventional energy resources through its support of innovative AI smart drilling design, completions engineering, and production solutions.
A major driver of investment decisions will be the ability of those investments to support wider energy transition ambitions, a net zero agenda and ongoing economic diversification efforts.
