Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — FY2023 Earnings Presentation
27 slides from Adnoc Drilling Company Pjsc's earnings presentation, Feb 12, 2024
Slide 1: Full Year 2023 Results Presentation
FULL YEAR 2023 RESULTS PRESENTATION 12 FEBRUARY 2024 1
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 Strategic Overview Abdulrahman Abdullah Al Seiari Chief Executive Officer Operational Highlights Christopher McDonald Financial Performance Chief Operating Officer Closing Remarks Youssef Salem Chief Financial Officer Appendix 3
Slide 4: 1. Strategic Overview
1. STRATEGIC OVERVIEW ADNOC DRILLING 4
Slide 5: Strategy Overview
STRATEGY OVERVIEW STRATEGIC PILLARS UNDERPINNING LONG-TERM VALUE CREATION Profitable Growth Operational Excellence Seeking to increase profitability through value- Utilizing technology and digitalization to improve enhancing opportunities, inside and outside of Abu Dhabi operational performance and
Slide 6: Robust Growth: Full Year 2023 Key Highlights
ROBUST GROWTH FULL YEAR 2023 KEY HIGHLIGHTS Safety Financial Operational & Environment 54,438 GJ/Rig 14% YoY 1st International rig Energy intensity vs target of 54,499 FY 2023 revenue increase Started operation in Jordan for integrated GJ/Rig in FY23 drilling program 0.44 TRIR 49% EBITDA margin +14
Slide 7: 2. Operational Highlights
2. OPERATIONAL HIGHLIGHTS ADNOC DRILLING 7
Slide 8: Quarterly Progress
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 gas ► Added 5 hybrid land rigs to the
Slide 9: Expanding Fleet, Growing Well Count
EXPANDING FLEET, GROWING WELL COUNT KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Durations (Days) Commentary Onshore Jackup Island Onshore Offshore › 613 wells drilled in FY23, with 161 well 129 85 82 drilled in 4Q23. 124 77 115 10 10 10 35 35 31 › Added a total of 14 rigs over FY23, 41 42
Slide 10: Accretive OFS Investments
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 strategic investment Joint line
Slide 11: Decarbonization Initiatives Driving ESG Agenda
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: obtained final • Acquired a total of 16 newbuild hybrid • Monitorin
Slide 12: 3. Financial Performance
3. FINANCIAL PERFORMANCE ADNOC DRILLING 12
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS FULL YEAR 2023 OVERVIEW Revenue ($ Million) EBITDA ($ Million) Net Income ($ Million) % growth % EBITDA margin % growth 14% 49% 29% 3,057 46% 1,483 1,033 2,673 1,232 802 15% 41% 8% 48% 49% 50% 28% 841 424 329 733 776 353 381 234 257 4Q22 3Q23 4Q23 FY22 FY23 4Q22 3Q23 4Q23 FY22 F
Slide 14: Segmental Revenue
SEGMENTAL REVENUE TOP-LINE YEAR-ON-YEAR GROWTH ACROSS ALL BUSINESS SEGMENTS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 3% 31% Growth across segments drives 14% YoY 1,495 800 increase in FY23 revenue to $3,057 million 1,453 611 10% 25% › Onshore: 4Q23 revenue increa
Slide 15: EBITDA Generation
EBITDA GENERATION INDUSTRY-LEADING MARGINS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 49% 48% 64% FY23 EBITDA up 20% to $1,483 million, with 705 724 510 industry leading margin of 49%. 54% 329 › Onshore: 4Q23 EBITDA up 8% YoY due to 50% 50% 49% higher revenue which
Slide 16: Accelerated Growth Targets
ACCELERATED GROWTH TARGETS FULL YEAR 2024 GUIDANCE ANNOUNCED, MEDIUM-TERM GUIDANCE UPDATED (USD, Millions) FY2024 Guidance Medium-Term Guidance Revenue 3,600 – 3,800 • Revenue CAGR in the 12-16% range from FY2023 base Onshore Revenue 1,600 –1,700 Offshore Jack-up Revenue 1,000 – 1,100 • EBITDA margi
Slide 17: 5. Closing Remarks
5. CLOSING REMARKS ADNOC DRILLING 17
Slide 18: Closing Remarks
CLOSING REMARKS Strong earnings growth New technology Delivering on our ESG Enabling ADNOC’s driven by expanding fleet partnership and first step agenda by pursuing accelerated production and cost efficiencies into regional expansion ambitious goals capacity targets with IDS Paving the way for furth
Slide 19: Appendix
ADNOC Drilling Baty APPENDIX ADNOC DRILLING
Slide 20: We Continue to Pursue Ambitious ESG Goals
WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK & PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • Support ADNOC’s target to decrease GHG • Economic performance of the Company • 24 recordable incidents across the business int
Slide 21: Strong Operational Performance
STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Segment 2023 Highlights › Completed ADNOC Drilling’s first injection CO2 well utilizing AD 64. › Lost time incident (“LTI”) of 0.12 versus a target of 0.22 by the end of 2023. Onshore › Achieved TRIR of 0.54 against a target of 0.70 for 2
Slide 22: Strong Cashflow & Balance Sheet
STRONG CASHFLOW & BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER RIG FLEET GROWTH Net Cash from Operating Activities ($ Million) Commentary Cash from Operating Activities › Cash from operating activities stood at $1,355 million in FY23. › Net profit increased 29% or $231 million Y
Slide 23: Ample Financial Headroom
AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION Financial Headroom ($ Billion), indicative figures for illustrative purposes only ~ ~ ~ ~ ~ (@2x Capacity Target) 23
Slide 24: CapEx Supports Fleet Expansion
CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICIPATED INVESTMENT RAMP-UP CapEx1 ($ Million) Commentary % revenue CapEx 44% 1,333 › FY23 CapEx of $1,333 million, in line with the expected 35% ramp-up in rig acquisitions 942 › Rig fleet expansion program progressing, supported by 59% 58% 14 rig
Slide 25: Financial Summary FY23
FINANCIAL SUMMARY FY23 (USD, Millions) 4Q23 4Q22 YoY 3Q23 QoQ FY23 FY22 YoY Revenue 841 733 15% 776 8% 3,057 2,673 14% Opex1 (417) (380) 10% (395) 6% (1,574) (1,441) 9% EBITDA2 424 353 20% 381 11% 1,483 1,232 20% Depreciation and amortization (75) (110) -32% (111) -32% (391) (401) -2% Finance cost -
Slide 26: Segmental Results FY23
SEGMENTAL RESULTS FY23 (USD, Millions) 4Q23 4Q22 YoY 3Q23 QoQ FY23 FY22 YoY Revenue 841 733 15% 776 8% 3,057 2,673 14% Onshore 416 379 10% 378 10% 1,495 1,453 3% Offshore Jack-up 225 180 25% 199 13% 800 611 31% Offshore Island 52 51 2% 54 -4% 209 204 2% Oilfield Services (OFS) 148 123 20% 145 2% 553
Slide 27: Thank You
www.adnocdrilling.ae ir@adnocdrilling.ae THANK YOU ADNOC DRILLING 27
ADNOC Drilling Company PJSC — FY2023 Earnings Presentation on 6ix