Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — FY2022 Earnings Presentation
27 slides from Adnoc Drilling Company Pjsc's earnings presentation, Feb 13, 2023
Slide 1: Fourth Quarter & Full Year 2022 Results Presentation
FOURTH QUARTER & FULL YEAR 2022 RESULTS PRESENTATION FEBRUARY 13, 2022 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 2: Disclaimer
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 purposes. It should not be constru
Slide 3: Agenda & Presenters
AGENDA & PRESENTERS 4Q & FY Highlights Abdulrahman Abdullah Al Seiari Strategic Progress Chief Executive Officer Operational Highlights Financial Performance Esa Ikaheimonen Chief Financial Officer Guidance Summary Emri Zeineldin Senior Vice President, Oilfield Services Appendix 3 FY22 RESULTS PRESE
Slide 4: Record Financial Performance with Highest-Ever Operational Rig Count
RECORD FINANCIAL PERFORMANCE WITH HIGHEST-EVER OPERATIONAL RIG COUNT Safety & environment Financial Operational 50,678 27% 16 GJ/Rig energy intensity in 4Q22 vs. YoY revenue increase in 4Q22 to New rigs added to the ADNOC target of 52,539 GJ/Rig record $733 million Drilling fleet in FY22 537.7 $434
Slide 5: Strategic Progress
STRATEGIC PROGRESS 5 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 6: Strategic Partner at the Heart of ADNOC Upstream
STRATEGIC PARTNER AT THE HEART OF ADNOC UPSTREAM Our value creation profile Significant leverage to growth • Key enabler of delivering ADNOC’s long-term upstream targets • Strong in-house capability set drives accelerated growth into oilfield services (OFS) • Further potential for disciplined domest
Slide 7: Rig Services Framework Agreement
RIG SERVICES FRAMEWORK AGREEMENT Preferential contractual framework with ADNOC provides attractive returns, high visibility and strong downside protection ADNOC Upstream operating companies procure rig services solely from ADNOC Drilling based on agreed contractual terms Initial Rig Base Term - 15 y
Slide 8: Well-Positioned for Future Growth
WELL-POSITIONED FOR FUTURE GROWTH A critical enabler of ADNOC’s accelerated production capacity targets Accelerated Growth Targets Commentary Production Capacity Targets (mm barrels / day) ADNOC Drilling has accelerated its own growth plans to enable ADNOC’s strategic imperative of 5 5 expanding pro
Slide 9: Executing on Our Strategy
EXECUTING ON OUR STRATEGY Our long-term strategy for growth is focused on four areas Capitalize on ADNOC Unconventional increasing production development Capitalize on ADNOC's plans to Become a Middle East regional leader increase production capacity to 5 in unconventional development. million barre
Slide 10: Operational Highlights
OPERATIONAL HIGHLIGHTS 10 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 11: Growing Fleet Is Drilling More Wells
GROWING FLEET IS DRILLING MORE WELLS Key operational highlights Commentary Owned Rigs Drilling Average Duration (days) Onshore Jackup Island ▪ 620 wells drilled in FY22 Onshore Offshore compared to 549 wells drilled in 115 FY21 108 78 77 77 99 10 10 10 31 ▪ 8 Onshore H&P FlexRigs 25 24 41 integrated
Slide 12: Onshore and OFS Drive Performance
ONSHORE AND OFS DRIVE PERFORMANCE Segmental operating highlights Onshore ▪ 91% Rig Availability for Onshore operations in FY22 (vs. 95% in FY21) ▪ 93% Rig Efficiency for Onshore operations in FY22 (vs. 93% in FY21) ▪ Drilled longest onshore lateral section of 17,148 feet, 6.79 days ahead schedule Of
Slide 13: We Continue to Pursue Ambitious ESG Goals
WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS Our ESG framework and 4Q22 performance highlights Climate, emissions and energy Economic and social contribution Health, safety and security ▪ Support ADNOC’s target to decrease GHG ▪ In-country value (ICV) at 60.0% versus a ▪ Zero recordable incidents in Of
Slide 14: Financial Performance
FINANCIAL PERFORMANCE 14 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS Strong revenue momentum with industry-leading EBITDA margins $ millions Revenue EBITDA Net Income % growth % EBITDA margin % growth 46% 18% 46% 33% 2,673 1,232 1,047 802 2,269 61% 604 27% 48% 45% 733 353 234 575 262 145 4Q21 4Q22 FY21 FY22 4Q21 4Q22 FY21 FY22 4Q21 4Q22 FY21 FY22
Slide 16: Segmental Revenue
SEGMENTAL REVENUE Onshore and OFS powering record quarterly revenue in 4Q22 $ millions Commentary Onshore Offshore Jackup Onshore and Oilfield Services drove overall % growth % growth FY22 revenues to $2.67 billion, up 18% year-on-year. 4Q revenue increased 27%. 27% 3% 1,453 596 611 1,140 Onshore: 4
Slide 17: EBITDA Generation
EBITDA GENERATION Significant EBITDA growth across segments in 4Q22 $ millions Onshore Offshore Jackup Commentary % EBITDA margin % EBITDA margin FY22 EBITDA up 18% at an industry- leading margin of 46%. 4Q22 EBITDA 49% 60% 54% increased by 35% year-on-year. 43% 50% 705 355 329 45% 493 60% Onshore:
Slide 18: Strong Cashflow and Balance Sheet
STRONG CASHFLOW AND BALANCE SHEET Healthy cash position with ample liquidity to power accelerated rig acquisition program $ millions Net Cash from Operating Activities Commentary Net Cash from Operating Activities ▪ FY22 cash generated from operating activities was $1.52 billion, an increase of 29%
Slide 19: Working Capital Optimized, CapEx Ramps Up
WORKING CAPITAL OPTIMIZED, CAPEX RAMPS UP Working capital within targeted range; Capex accelerated significantly in 4Q22 $ millions CapEx Commentary CapEx % of revenue 35% ▪ During FY22, significantly increased 942 26% CapEx of $942 million supported rig fleet 59% expansion, with initial payments ma
Slide 20: Guidance
GUIDANCE 20 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 21: Accelerated Growth Targets
ACCELERATED GROWTH TARGETS FY 2023 guidance introduced; medium-term guidance refreshed (USD Millions) FY 2023 Guidance Refreshed Medium-Term Guidance Revenue 3,000 - 3,200 ▪ Revenue CAGR in the 12-16% range ▪ EBITDA Margins around 50% with drilling Onshore Revenue 1,500 - 1,600 margins exceeding 50%
Slide 22: Summary
SUMMARY 22 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 23: A Solid Quarter, Well Positioned for Growth
A SOLID QUARTER, WELL POSITIONED FOR GROWTH A RECORD-BREAKING YEAR Stellar growth 16 new rigs Onshore and Significant Key enabler of enabled by added in FY22, OFS segments contract awards ADNOC’s expanded rig establishing enabling with over $10 accelerated fleet and one of the powerful top- billion
Slide 24: Appendix
APPENDIX 24 FY22 RESULTS PRESENTATION ADNOC DRILLING
Slide 25: Financial Summary 4Q22 & FY22
FINANCIAL SUMMARY 4Q22 & FY22 4Q22 3Q22 QoQ % 4Q21 YoY % USD Million FY22 FY21 YoY % 733 670 9% 575 27% Revenue 2,673 2,269 15% (380) (371) 2% (313) 21% Opex1 (1,441) (1,222) 17% 353 299 18% 262 35% EBITDA2 1,232 1,047 12% 234 189 24% 145 61% Net Profit 802 604 23% 48% 45% 46% EBITDA Margin 46% 46%
Slide 26: Segmental Results 4Q22 & FY22
SEGMENTAL RESULTS 4Q22 & FY22 USD Million 4Q22 3Q22 QoQ % 4Q21 YoY % FY22 FY21 YoY % Revenue 733 670 9% 575 27% 2,673 2,269 18% Onshore 379 372 2% 293 29% 1,453 1,140 27% Offshore Jackup 180 143 26% 146 23% 611 596 3% Offshore Island 51 52 -2% 38 34% 204 204 - Oilfield Services (OFS) 123 103 19% 98
Slide 27: Thank You
THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae FY22 RESULTS PRESENTATION ADNOC DRILLING
ADNOC Drilling Company PJSC — FY2022 Earnings Presentation on 6ix