Slide 1: ADNOC Drilling Results Presentation FY 2021
ADNOC DRILLING RESULTS PRESENTATION FY 2021 Q4 AND 12M ENDED 31 DECEMBER 2021 FY21 RESULTS PRESENTATION 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 FY 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 F
Slide 4: Strong Operational Performance Supporting Healthy Financial Results
STRONG OPERATIONAL PERFORMANCE SUPPORTING HEALTHY FINANCIAL RESULTS Highlights from the fourth quarter and twelve months ended 31 December 2021 Safety & environment Operational Financial 0.8 549 9% Total recordable incident rate Wells drilled in FY21, and over EBITDA growth for FY21 4.6 million feet
Slide 5: Strategic Progress
STRATEGIC PROGRESS 5 FY21 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 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: Unlocking Future Value with Our Partners
UNLOCKING FUTURE VALUE WITH OUR PARTNERS Our strategic partnerships with Baker Hughes and Helmerich & Payne are primed to advance our value proposition Value proposition Operational excellence ▪ Complete integration of rigs and services ▪ Opex optimization on identified fleet ▪ People on board optim
Slide 9: Operational Highlights
OPERATIONAL HIGHLIGHTS 9 FY21 RESULTS PRESENTATION ADNOC DRILLING
Slide 10: Rig Fleet Stable with Healthy Utilization
RIG FLEET STABLE WITH HEALTHY UTILIZATION Key operational highlights for FY21 FY21 Commentary Rigs Drilling average duration (days) ▪ Fleet utilization at 96% for Onshore Offshore FY21 (92% in FY20) Onshore Jackup Island Rentals 74 72 76 ▪ 2x new Onshore rigs added to 104 107 107 8 the fleet in FY21
Slide 11: Higher Efficiency, Onshore and OFS Growth
HIGHER EFFICIENCY, ONSHORE AND OFS GROWTH Segmental operating highlights in FY21 Onshore New Operating ▪ Accelerated NOP to 42 rigs (35 rigs planned) driving significant annual savings ▪ Reactivation of 15 stacked rigs and 2 new land rigs Philosophy (NOP) ▪ Enhanced rig move efficiency, saving $8.5
Slide 12: We Continue to Pursue Ambitious ESG Goals
WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS Our ESG framework and FY21 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 62.7% FY21 vs. a ▪ TRIR at 0.82 vs. a set target of 1.2 for 2
Slide 13: Financial Performance
FINANCIAL PERFORMANCE 13 FY21 RESULTS PRESENTATION ADNOC DRILLING
Slide 14: Financial Highlights – Q4 and FY21
FINANCIAL HIGHLIGHTS – Q4 and FY21 Growth in key segments coupled with cost efficiencies drives healthy bottom-line; Capex ramped up for growth $ millions Revenue EBITDA Net income % Y-o-Y growth % EBITDA margin % Y-o-Y growth 8% 46% 46% 6% 2,269 2,098 1,047 960 569 604 (1)% 46% 44% (2)% 581 575 255
Slide 15: Healthy 12-Month Revenues
HEALTHY 12-MONTH REVENUES Top-line growth for FY21 driven by Onshore and Oilfield Services $ millions FY21 Commentary Onshore Offshore Jackup Full year revenue increased by $172 million driven primarily by growth in the Onshore % Y-o-Y growth 6% % Y-o-Y growth 2020 revenues and OFS segments. negativ
Slide 16: Robust EBITDA Generation Profile
ROBUST EBITDA GENERATION PROFILE Healthy EBITDA growth with lower Opex and additional other income $ millions FY21 Commentary Full year EBITDA improved by $88 million Onshore Offshore Jackup due to higher revenue from OFS and % EBITDA margin % EBITDA margin Onshore. Q4 EBITDA increased by $6 44% 60%
Slide 17: Strong Cashflow and Balance Sheet
STRONG CASHFLOW AND BALANCE SHEET Healthy cashflow growth and maintaining a conservative balance sheet position $ millions FY21 Commentary Free Cashflow Cash From Operations Increased FY cash from operations resulted from higher revenues. Free cashflow was lower by $955 million due to the one-off re
Slide 18: Increased Capex & Improved Working Capital
INCREASED CAPEX & IMPROVED WORKING CAPITAL Capex ramped up by 149% to enable rig fleet expansion and growth for OFS $ millions FY21 Commentary Capex Capex % revenue 26% Capex increased due to Onshore and Jackup rig acquisition, partially offset by 583 lower OFS capex 11% Onshore Capex included acqui
Slide 19: Guidance
GUIDANCE 19 FY21 RESULTS PRESENTATION 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 FY21 RESULTS PRESENTATION ADNOC DRILLING
Slide 22: A Good Year, Well Positioned for Growth
A SOLID QUARTER, WELL A GOOD YEAR, POSITIONED FOR GROWTH WELL-POSITIONED FOR GROWTH Summary of our Q3 and 9M 2021 results Summary of our Q4 and FY21 results Robust and Impactful cost High quality Continued focus Delivering resilient FY controls and asset base and on best-in-class competitive revenue
Slide 23: Appendix
APPENDIX 23 FY21 RESULTS PRESENTATION ADNOC DRILLING
Slide 24: Financial Summary Q4 and FY21
FINANCIAL SUMMARY Q4 and FY21 USD Millions Q4-21 Q3-21 QoQ % Q4-20 YoY % FY 2021 FY 2020 YoY % Revenue 575 571 1% 581 (1%) 2,269 2,098 8% Direct cost excluding depreciation (260) (236) 10% (275) (5%) (993) (935) 6% General & administrative expenses (G&A) (53) (50) 6% (49) 8% (239) (206) 16% excludin
Slide 25: Segmental Results Q4 and FY21
SEGMENTAL RESULTS Q4 and FY21 $ millions Q4-21 Q3-21 QoQ % Q4-20 YoY % FY 2021 FY 2020 YoY % Revenue 575 571 1% 581 (1%) 2,269 2,098 8% Onshore 293 279 5% 305 (4%) 1,140 1,076 6% Offshore Jackup 146 157 (7%) 154 (5%) 596 597 (0%) Offshore Island 38 61 (38%) 54 (30%) 204 203 0% Oilfield Services (OFS
Slide 26: Thank You
THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae FY21 RESULTS PRESENTATION ADNOC DRILLING