Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q1 2024 Earnings Presentation
29 slides from Adnoc Drilling Company Pjsc's earnings presentation, May 13, 2024
Slide 1: First Quarter 2024 Results Presentation
ADNOC Classification: Public FIRST QUARTER 2024 RESULTS PRESENTATION MAY 13, 2024 1
Slide 2: Disclaimer
ADNOC Classification: Public DISCLAIMER This presentation has been prepared by ADNOC Drilling Company PJSC (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purpo
Slide 3: Agenda & Presenters
ADNOC Classification: Public AGENDA & PRESENTERS Strategic Developments Abdulrahman Abdullah Al Seiari Operational Highlights Chief Executive Officer Financial Performance Youssef Salem Closing Remarks Chief Financial Officer Appendix 3
Slide 4: 1. Strategic Developments
ADNOC Classification: Public 1. STRATEGIC DEVELOPMENTS ADNOC DRILLING 4
Slide 5: Robust Growth: Q1 2024 Key Highlights & Strategic Developments
ADNOC Classification: Public ROBUST GROWTH FIRST QUARTER 2024 KEY HIGHLIGHTS & STRATEGIC DEVELOPMENTS Safety Financial Operational & Environment 2,621 GJ/$MM 24% YoY 97% Rig availability Energy intensity vs target of 2,772 1Q24 revenue increase Overall fleet availability at end of 1Q24 GJ/$MM revenu
Slide 6: Development of Unconventional Resources
ADNOC Classification: Public DEVELOPMENT OF UNCONVENTIONAL RESOURCES START OF THE JOURNEY TO ENABLE MULTI-YEAR GROWTH $1.7 billion1 144 wells 220 billion barrels/ 460 tcf Awarded for the first phase of the Oil and gas wells over 2+ years2; UAE holds 220 billion barrels and 460 tcf of development of
Slide 7: 2. Operational Highlights
ADNOC Classification: Public 2. OPERATIONAL HIGHLIGHTS ADNOC DRILLING 7
Slide 8: Expanding Fleet, Growing Well Count
ADNOC Classification: Public EXPANDING FLEET, GROWING WELL COUNT KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Durations (Days) Commentary Onshore Jackup Island Onshore Offshore › Added eight land rigs in 1Q24 to the rig 137 85 129 82 fleet count, bringing the total fleet 115 10 10 67 to 13
Slide 9: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Public DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rig Rigs Energy Optimization • Madinat Zayed camp powered by the • Acquired a total of 16
Slide 10: 3. Financial Performance
ADNOC Classification: Public 3. FINANCIAL PERFORMANCE ADNOC DRILLING 10
Slide 11: Financial Highlights
ADNOC Classification: Public FINANCIAL HIGHLIGHTS FIRST QUARTER 2024 OVERVIEW Revenue ($ Million) EBITDA ($ Million) Net Income ($ Million) % growth % EBITDA margin % growth (1) 49% 50% 49% (4%) 24% 5% 886 886 287 841 47% 437 437 275 275 424 26% 716 219 333 1Q23 1Q24 4Q23 1Q24 1Q23 1Q24 4Q23 1Q24 1Q
Slide 12: Segmental Revenue
ADNOC Classification: Public SEGMENTAL REVENUE RECORD FIRST QUARTER REVENUE DRIVEN BY YEAR-ON-YEAR GROWTH ACROSS SEGMENTS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 16% (1%) 51% 24% 1Q24 revenue +24% YoY and +5% 278 278 sequentially to $886 million 411 416 411 355
Slide 13: EBITDA Generation
ADNOC Classification: Public EBITDA GENERATION INDUSTRY-LEADING MARGINS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % EBITDA margin % EBITDA margin 1Q24 EBITDA up 31% YoY to $437 million, 49% 46% 49% 46% 57% 65% 66% 65% with industry leading margin of 49% 203 182 182 190 190 173 148
Slide 14: Delivering on Growth Targets
ADNOC Classification: Public DELIVERING ON GROWTH TARGETS ON-TRACK WITH FULL YEAR 2024 AND MEDIUM-TERM GUIDANCE (USD, Million) FY2024 Guidance Medium-Term Guidance Revenue 3,600 – 3,800 • Revenue CAGR in the 12-16% range from FY2023 base Onshore Revenue 1,600 –1,700 Offshore Jack-up Revenue 1,000 –
Slide 15: Accretive Investments & Expansion
ADNOC Classification: Public ACCRETIVE INVESTMENTS & EXPANSION EXPEDITED PROGRAM TO DRIVE ENHANCED RETURNS Enersol Regional Expansion JV to invest up to USD 1.5 billion, targeting global investments in ADNOC Drilling targeting regional expansion into selected tech-enabled oilfield and energy service
Slide 16: New Dividend Policy
ADNOC Classification: Public NEW DIVIDEND POLICY OPTIMIZING CAPITAL ALLOCATION THROUGH SUSTAINABLE AND PROGRESSIVE DISTRIBUTIONS Higher YoY growth in dividend with additional increases up to Board of Directors discretion › Dividend to grow by at least 10% per annum on a DPS basis over next five year
Slide 17: 5. Closing Remarks
ADNOC Classification: Public 5. CLOSING REMARKS ADNOC DRILLING 17
Slide 18: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Strong earnings growth New progressive dividend Completed first Enersol Delivering on our ESG driven by expanding fleet policy to enhance transaction & started agenda by pursuing and cost efficiencies distributions transformative journey of ambitious goal
Slide 19: Appendix
ADNOC Classification: Public APPENDIX ADNOC DRILLING 19
Slide 20: Quarterly Progress
ADNOC Classification: Public QUARTERLY PROGRESS DELIVERING ON GROWTH ADNOC Production Unconventional Increasing Development Capitalize on ADNOC's plans to increase Become a Middle East regional leader in production capacity to 5 million barrels per unconventional development day and 1bcf of unconven
Slide 21: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK & PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • GHG Abatement at 0.79 KtCO2e in 1Q2024 • Economic performance of the Company • 9 recordable incid
Slide 22: Strong Operational Performance
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Segment 1Q24 Highlights › AD137 completed first well in Jordan. › Madinat Zayed central camp was connected to grid during the first quarter. Onshore › AD-138 successfully implemented the first Casing while Dri
Slide 23: Strong Cashflow & Balance Sheet
ADNOC Classification: Public STRONG CASHFLOW & BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER RIG FLEET GROWTH Net Cash from Operating Activities ($ Million) Commentary Cash from Operating Activities › Cash from operating activities stood at $347 million in 1Q24. › Net profit incr
Slide 24: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICIPATED INVESTMENT RAMP-UP CapEx1 ($ Million) Commentary % revenue CapEx 58% › 1Q24 CapEx including prepayments and accruals, 11% 9% 9% amounted to $80 million for the 1Q24. 484 › Rig fleet expansion program progressin
Slide 25: Ample Financial Headroom
ADNOC Classification: Public AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION Financial Headroom ($ Billion), indicative figures for illustrative purposes only ~ ~ ~ ~ ~ (@2x Capacity Target) 25
Slide 26: Accretive OFS Investments
ADNOC Classification: Public ACCRETIVE OFS INVESTMENTS EXPEDITED PROGRAM, CAPTURED SYNERGIES, & ENHANCED RETURNS November 2023 January 2024 Way Forward • ADNOC Drilling and Alpha Dhabi signed the • Successful incorporation of Enersol. • Evaluate, execute and integrate transactions in creation of str
Slide 27: Financial Summary 1Q24
ADNOC Classification: Public FINANCIAL SUMMARY 1Q24 (USD, Million) 1Q24 1Q23 YoY 4Q23 QoQ Revenue 886 716 24% 841 5% Opex1 (451) (383) 18% (417) 8% Share of profit of an associate 2 - NM - NM EBITDA2 437 333 31% 424 3% Depreciation and amortization (107) (102) 5% (75) 43% Finance cost - net (28) (12
Slide 28: Segmental Results 1Q24
ADNOC Classification: Public SEGMENTAL RESULTS 1Q24 (USD, Million) 1Q24 1Q23 YoY 4Q23 QoQ Revenue 886 716 24% 841 5% Onshore 411 355 16% 416 (1%) Offshore Jack-up 278 184 51% 225 24% Offshore Island 51 51 0% 52 (2%) Oilfield Services (OFS) 146 126 16% 148 (1%) Total OPEX1 (451) (383) 18% (417) 8% On
Slide 29: Thank You
ADNOC Classification: Public www.adnocdrilling.ae ir@adnocdrilling.ae THANK YOU ADNOC DRILLING 29
ADNOC Drilling Company PJSC — Q1 2024 Earnings Presentation on 6ix