Slide 1: ADNOC Drilling Results Presentation Q3 2021
ADNOC DRILLING RESULTS PRESENTATION Q3 2021 THREE AND NINE MONTHS ENDED 30 SEPTEMBER 2021 Q3 RESULTS 2021 ADNOC DRILLING
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the Abu Dhabi National Oil Company and its subsidiaries (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 purpos
Slide 3: Agenda & Presenters
AGENDA & PRESENTERS 1 Q3 2021 Highlights Abdulrahman Abdullah Al Seiari 2 Strategic Progress Chief Executive Officer 3 Operational Highlights 4 Financial Performance Alexander Urquhart Chief Financial Officer 5 Guidance 6 Summary Emri Zeineldin Senior Vice President, Oilfield Services 7 Appendix 3 Q
Slide 4: Strong Operational Performance Supporting Healthy Financial Results
STRONG OPERATIONAL PERFORMANCE SUPPORTING HEALTHY FINANCIAL RESULTS Highlights from the three and nine months ended 30 September 2021 Safety & environment Operational Financial 0.9 396 50% Total recordable incident rate Wells drilled YTD, and over EBITDA margin for Q3 21 3.4 million feet 32.5K $571m
Slide 5: Strategic Progress
STRATEGIC PROGRESS 5 Q3 RESULTS 2021 ADNOC DRILLING
Slide 6: Strategic Partner at the Heart of ADNOC Upstream
STRATEGIC PARTNER AT THE HEART OF ADNOC UPSTREAM Our value creation profile High return, limited risk proposition • Integral position to ADNOC operations driving bespoke contractual position • Attractive returns, high visibility and strong downside protection • Compelling IRRs generated over a long
Slide 7: We Are Executing on Our Strategy
WE ARE EXECUTING ON OUR STRATEGY Our long-term strategy for growth is focused on four areas Capitalize on ADNOC Unconventional and increasing production biogenic Capitalize on ADNOC's plans to Become a Middle East regional leader increase production capacity to 5 in unconventional and biogenic milli
Slide 8: Strength in Our Strategic Partnerships
STRENGTH IN OUR STRATEGIC PARTNERSHIPS Our strategic partnerships with international blue chips Baker Hughes and Helmerich & Payne continue to support our pursuit of operational excellence and growth Significant contribution to A framework for leveraging operational excellence & technology and opera
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS 9 Q3 RESULTS 2021 ADNOC DRILLING
Slide 10: Rig Fleet Stable with Healthy Utilization
RIG FLEET STABLE WITH HEALTHY UTILIZATION Key operational highlights for Q3 and 9M 2021 Q3 2021 Commentary Rigs Drilling average duration (days) Land Jackup Island Rentals Onshore Offshore ▪ Fleet utilization at 95.5% at 74 72 76 109 107 105 9M 2021 16 11 9 10 10 10 ▪ 2x new Onshore rigs and 1x 20 2
Slide 11: Positive Efficiency Impact & OFS Growth
POSITIVE EFFICIENCY IMPACT & OFS GROWTH Segmental operating highlights in Q3 2021 Onshore Remote Operations ▪ New Operating Philosophy (NOP) recognizing annual savings of $50m for 2021-22 ▪ Deployed 15 stacked Land Rigs & 2 new Land Rigs with new clients – OXY and JODCO Services Centre ▪ Increased c
Slide 12: We Continue to Pursue Ambitious ESG Goals
WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS Our ESG framework and Q3 2021 highlights Climate, emissions and energy Economic and social contribution Health, safety and security ▪ Decrease GHG intensity by 25% by 2030 ▪ In-Country Value (ICV) at 67% YTD vs. a ▪ TRIR at 0.9 vs. a set target of 1.2 for 20
Slide 13: Financial Performance
FINANCIAL PERFORMANCE 13 Q3 RESULTS 2021 ADNOC DRILLING
Slide 14: Financial Highlights – Q3 and 9M
FINANCIAL HIGHLIGHTS – Q3 21 AND 9M 21 Continued growth across the business despite challenging environment $ millions Revenue EBITDA Net income % Y-o-Y growth % EBITDA margin % Y-o-Y growth 46% 46% 12% 9% 1,694 785 1,517 705 460 50% 422 11% 48% 41% 515 571 285 178 209 120 Q3 20 Q3 21 9M 20 9M 21 Q3
Slide 15: Resilient Revenue Growth
RESILIENT REVENUE GROWTH Year-on-year revenue growth driven by Onshore and Oilfield Services $ millions Q3 2021 Commentary Onshore Offshore Jackup Total revenue increased by 11% to $571m, demonstrating continued growth % Y-o-Y growth % Y-o-Y growth 10% and resilience, driven by Onshore and 2% 847 OF
Slide 16: Robust EBITDA Generation Profile
ROBUST EBITDA GENERATION PROFILE Continued resilience across our drilling operations $ millions Q3 2021 Commentary Onshore Offshore Jackup Total EBITDA remains robust and ahead % EBITDA margin of 1H guidance at $285mn, % EBITDA margin 62% 61% demonstrating continued resilience 42% 43% during 3Q 2021
Slide 17: Strong Cashflow and Balance Sheet
STRONG CASHFLOW AND BALANCE SHEET Good cashflow growth and conservative balance sheet position $ millions Q3 2021 Commentary Cashflow (103) (453) Cash From Operations 823 Generated higher funds from operations compared to last year despite market (1,060) conditions and Covid-19 related 953 disruptio
Slide 18: Increased Capex & Improved Working Capital
INCREASED CAPEX & IMPROVED WORKING CAPITAL Four-fold increase in Capex to support OFS expansion and rig acquisition $ millions Q3 2021 Commentary Capex % revenue 28% Capex 454 Capex build up is due to OFS expansion 7% and rig acquisition program with majority of new rigs to go online in 2022. 100 Ne
Slide 19: Guidance
GUIDANCE 19 Q3 RESULTS 2021 ADNOC DRILLING
Slide 20: Targeting Growth and Competitive Returns
TARGETING GROWTH AND COMPETITIVE RETURNS Forward-looking guidance confirmed and unchanged Performance Growth Financial Revenue Rig Requirement Dividend Policy Low to mid-single digit growth for 2021 122 rigs by end of 2024 (56 focused on IDS) 5-for-5 dividend growth • Stable drilling revenues mainta
Slide 21: Summary
SUMMARY 21 Q3 RESULTS 2021 ADNOC DRILLING
Slide 22: A Solid Quarter, Well Positioned for Growth
A SOLID QUARTER, WELL A SOLID QUARTER, POSITIONED FOR GROWTH WELL POSITIONED FOR GROWTH Summary of our Q3 and 9M 2021 results Summary of our Q3 and 9M 2021 results Excellence in Robust Commitment Strong cash Confident in HSE and financial to strategy flow generation outlook, Sustainability, performa
Slide 23: Appendix
APPENDIX 23 Q3 RESULTS 2021 ADNOC DRILLING
Slide 24: Financial Summary Q3 & 9M 2021
FINANCIAL SUMMARY Q3 & 9M 2021 USD Millions Q3-21 Q2-21 QoQ % Q3-20 YoY % 9M 2021 9M 2020 YoY % Revenue 571 601 (5%) 515 11% 1,694 1,517 12% Direct Cost (332) (351) (5%) (335) (1%) (1,015) (913) 11% Gross Profit 239 250 (4%) 181 32% 679 604 12% General & administrative expenses (G&A) (57) (81) (30%)
Slide 25: Segmental Results Q3 and 9M 2021
SEGMENTAL RESULTS Q3 and 9M 2021 $ millions Q3-21 Q2-21 QoQ % Q3-20 YoY % 9M 2021 9M 2020 YoY % Revenue 571 601 (5%) 515 11% 1,694 1,517 12% Onshore 279 289 (3%) 257 9% 847 771 10% Offshore Jack-up 157 156 1% 160 (2%) 450 443 2% Offshore Island 61 69 (12%) 42 45% 166 149 11% Oilfield Services (OFS)
Slide 26: Thank You
THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae Q3 RESULTS 2021 ADNOC DRILLING