Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — Q3 2024 Earnings Presentation
23 slides from Arabian Drilling's earnings presentation, Nov 7, 2024
Slide 1: Q3'24 Earnings Call
Arabian“D Drilling HESS | Q3'24 EARNINGS CALL. 07 Nov 2024
Slide 2: Disclaimer
Arabian Drilling | — Q3'24 Earnings Call DISCLAIMER This presentation has been prepared by Arabian Drilling (the “Company” or “AD") based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informatio
Slide 3: The Presenting Team
Arabian Drilling | Q3'24 Earnings Call THE PRESENTING TEAM Ct OG ara We are pleased to have maintained our EBITDA profit margin this Quarter, supported by our ability to deliver efficiencies throughout cycles. Our strategic investments in the Unconventional Land Rigs program are yielding positive re
Slide 4: Agenda
Arabian Drilling Q3'24 Earnings Call AGENDA Q3’24 Highlights Business & Operations Financial Performance . Closing Remarks Q&A Session
Slide 5: Q3'24 Highlights
A, Q3'24 Highlights Arabian Drilling Q3'24 Earnings Call
Slide 6: Focused, Repositioning
Arabian Drilling | Q3'24 Earnings Call FOCUSED, REPOSITIONING Operational Highlights = Utilization Rate 86% = Quarterly Non-Productive Time (‘NPT’) 1.51% = Total 39 Rig Moves, with 39 days saved HSE & Sustainability = Best TRIF, continued focus on high safety standards = 10M+ Km driven YTD with zero
Slide 7: Business & Operations
A, Business & Operations Arabian Drilling Q3'24 Earnings Call
Slide 8: Market Share Land - EoP Q3'24
Arabian Drilling | Q3'24 Earnings Call Market Share Land - EoP Q3’24 Ott UNCONVENTIONAL DEPLOYMENT “4 sAwap Ahead of Schedule Heder Pein RECENT DEVELOPMENTS Land Activity Status = Unconventional Rigs - 1 Award: all 10 rigs have now started operations as of today LR@NBeurac = Unconventional Rigs — 2"
Slide 9: Drilling Backlog by Customer - EoP Q3'24
Arabian Driling | Q3'24 Earnings Call Backlog by Customer — EoP Q3'24 (SAR M and %) BACKLOG MIX SHIFT > Baker Ss 100 298,3% 204,2% Hughes 545, 5% ms Backlog (SAR M) jEaed 11,908 1,793 10,278 Q3'23 Q4'23 gr24 9224 Q3'24 Gagauill gSolji ‘saudi aramco Backlog by Segment - EoP Q2'24 (%) Rigs Rolling Off
Slide 10: Number of Rig Moves & Days Saved
Arabian Drilling | Q3'24 Earnings Call Number of Rig Moves & Days Saved OPERATIONAL EFFICIENCY 47 43 38 z@) Q4'23 grea Qe'24 Q3'24 Rig Count & Utilization Rate - EoP mm Rig Moves Completed ——Average Net Days Saved / Rig Move 95.9% 95.9% Non-Productive Time (‘NPT’) : . q i 35 2 2 Q4'23 gr24 Q2'24 Q3'
Slide 11: Financial Performance
A, Financial Performance Arabian Drilling Q3'24 Earnings Call
Slide 12: Q3'24 Financial Highlights
GS Arabian Drilling | — Q3'24 Earnings Call Q3’24 FINANCIAL HIGHLIGHTS (SAR M) ® & fp 863 35 548 REVENUE EBITDA @41.5% (-8% 909) (-7% 900) CAPEX = I< f (70) 9.2% 2,646 FREE CASH FLOW (*) ROE (“*) fx eee PR (‘): Fee Cash Flow calculated as Cash Flow from Operations less CAPEX (**) ROE calculated as L
Slide 13: ▪ ▪ ▪ 3,000 3,000 3000 3,000 2,700 2,700 2700 2,700 2,400 2,400 2400
▪ ▪ ▪ 3,000 3,000 3000 3,000 2,700 2,700 2700 2,700 2,400 2,400 2400 2,400 ▪ 2,100 2,100 2100 2,100 1,800 1,800 1800 1,800 1,500 1,500 1500 1,500 1,200 1,200 1200 1,200 900 900 900 900 600 600 600 600 300 300 300 300 0 0 0 0 ▪ 1000 1000 ▪ 1000 900 900 900 800 800 800 700 700 700 600 600 600 500 500
Slide 14: ▪ ▪ 1200 1,200 1,150 0.9 1,100 0.9 1000 1,050 0.8 1,000 0.8 950
▪ ▪ 1200 1 1,200 1 1,150 0.9 1,100 0.9 1000 1,050 0.8 1,000 0.8 950 ▪ 900 0.7 850 800 0.7 800 0.6 750 0.6 700 650 600 0.5 600 0.5 550 0.4 500 0.4 450 400 400 0.3 0.3 350 300 0.2 250 0.2 200 200 0.1 150 0.1 100 50 0 0 0 0 ▪ 0.18 0.18 1,600 1600 0.16 0.16 1400 1,400 0.14 0.14 1200 1,200 0.12 0.12 1000
Slide 15: Capex Peak, Cash Normalizing
Arabian Drilling | — Q3'24 Earnings Call CAPEX PEAK, CASH NORMALIZING Cash Flow Bridge (SAR M) Commentary 840 Key Drivers = Capex: includes 1,014M (69%) for Unconventional Rigs. Others include OFSAT(49M), Rig upgrade (51M), Facilities & ERP upgrade (45M) and fleet sustaining Capex (308M) = Dividends
Slide 16: Maintaining Financial Stability
Arabian Drilling | — Q3'24 Earnings Call MAINTAINING FINANCIAL STABILITY Net Debt (SAR M) and Leverage Ratio Commentary (381) _ YE'23 YTD Sep'24 mmmCash mm@m@Borowing mmmileasc Total Gross Debt of 2.9 billion = 2Bn Sukuk and 2 Bank Loans (500M each) plus accrued interest, net of loan repayment of 75
Slide 17: FY'24 Guidance
7 Arabian Drilling ml $ Q3'24 Earnings Call FY’24 Revenue expected to close around FY’24 Capex expected to close between SAR 2.1 to SAR 2.2 billion
Slide 18: Closing Remarks
A, Closing Remarks Arabian Drilling Q3'24 Earnings Call
Slide 19: Charting a New Trajectory
Arabian Drilling Q3'24 Earnings Call CHARTING A NEW TRAJECTORY ]. Focusing on safety and sustainability 2. Increasing Land Segment contribution 3. Delivering cost savings initiatives 4. Adapting through short term market cycles 5. Expanding non-core business and offshore fleet
Slide 20: Arabdrill.com
This document and the information contained in it are given in confidence and are only to be used by the disclosing party and the receiving party to explore business opportunities relating to Arabian Drilling; they may not be disclosed to third parties or used for any other purpose without the expre
Slide 21: Appendix
A, APPENDIX Arabian Drilling Q3'24 Earnings Call
Slide 22: Net Income & EBITDA Reconciliation
bY NET INCOME & EBITDA RECONCILIATION In SAR Million Qi'24 Q2'24 Q3'24 += YTD Sep'24 Revenue 967 939 863 2,769 Net Income 146 20 85 251 ADD BACK: Asset impairment charge 105 105 Adjusted Net Income 146 125 85 356 ADD BACK: Finance costs - net 46 53 53 152 Zakat and Income Tax 22 2 5 29 Depreciation
Slide 23: Glossary
Arabian Drilling Co. | Q324 Earnings Call GLOSSARY Glossary Description Active Rig Month Annual number of months where rigs generate revenue Backlog Future contracted revenue yet to be recognized. Book-to-Bill Ratio Calculated as Backlog divided by LTM Revenue c. Circa / approximately CFF Net cash g