CEO's FIRST YEAR ANNIVERSARY MESSAGE

This month marks the first anniversary of NESR, and I wanted to look back at the last twelve months to highlight the progress the company has made with your efforts. We are almost halfway through 2019 and I am very proud of what we have achieved together and wanted to take this opportunity to share with you some thoughts and key areas of focus as we move forward in our exciting journey.

NESR today is the national champion of the region. Our esteemed customers recognize the differentiated value we bring to them in terms of superior service delivery, innovative solutions and responsiveness to their needs. They also recognize our contribution to the local industry and the larger society. We need to continue to build on their trust and demonstrate with clear actions, our strong belief in developing local talent and be the most reliable and trusted advisor for their operations.

I would like to congratulate you for the prompt integration efforts. We co-located in all the countries and are working together to optimize and streamline our support functions. We need to complete this effort by year end resulting in a companywide ERP system, improve utilization across segments and countries, share best practices and chose the most effective tool regardless of the originator. The overall market will continue to get more competitive, and we absolutely need to continuously improve to stay ahead of the competition and achieve our goals.

We grew at a much faster pace than the market. We accomplished almost 30% YOY growth and our aspiration is to double the company size every couple of years. Together we can achieve our goals when we continue to work as one team, build on the segments’ portfolio and the country organizations take an active approach to support the new product lines entrants. We need to deploy technology innovations tailored for customer needs, be close to the customer in the field and at their offices, listen to them, present technical solutions and leverage our technology partners and continue to seek support from our SME’s. We have established an incredibly talented group of SMEs (Subject Matter Experts) to ensure they are ready to travel to your location, meet your customer and give credible solutions to our client’s challenges.

Our core values remain the guiding principles for everything we do, and I would like to emphasize two fundamental beliefs which drive the success of our operations:

Safety : As we keep on reiterating, Safety is our number one priority and no compromises or allowances should be made for anything when it comes to ensuring our employees return safely to their loved ones. Safety is part of our life and should define our way of thinking and our actions. Whether it is permit to work, going to the well site, driving in the city or in the field, going home, looking how to improve the safety of our family, learning from the operations and passing to the society around us, or educating our parents it should permeate every part of what we do and effect. As the industry aspire to goal zero, we need to always be at forefront and leadership impacting not only the operations but our surroundings.

Quality : NESR is known for its excellent service delivery across the region. We need to be passionate and paranoid of exceeding our clients’ expectations. We aim to and need to pleasantly surprise them with our punctual delivery, motivated crews in the field, fit for purpose equipment and the highest standard of everything we do from maintenance at the base to flawless execution at the well site. All of us contribute to this image of impeccable service delivery and I would like all of us to accept nothing but the top position in every segment in every country.

As I keep on saying to every location I visit, we should all be proud of our achievements and be confident in who we are, our future is extremely bright and exciting. Working together as one team and by being closer to our customers, we will exceed our goals.

Finally, I would like to wish you and your families a very blessed and exceptional second half of the year and extend my sincere gratitude for being part of this very inspiring journey.

Sherif Foda
Chairman of the Board & CEO