Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q2 2024 Earnings Presentation
28 slides from Adnoc Drilling Company Pjsc's earnings presentation, Aug 5, 2024
Slide 1: Second Quarter 2024 Results Presentation
ADNOC Classification: Public SECOND QUARTER 2024 RESULTS PRESENTATION August 5, 2024 1
Slide 2: Disclaimer
ADNOC Classification: Public 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 purpo
Slide 3: Agenda & Presenters
ADNOC Classification: Public AGENDA & PRESENTERS Strategic Developments Abdulrahman Abdullah Al Seiari Operational Highlights Chief Executive Officer Financial Performance Youssef Salem Closing Remarks Chief Financial Officer Appendix 3
Slide 4: 1. Strategic Developments
ADNOC Classification: Public 1. STRATEGIC DEVELOPMENTS ADNOC DRILLING 4
Slide 5: Robust Growth Drives Increased Distributions
ADNOC Classification: Public ROBUST GROWTH DRIVES INCREASED DISTRIBUTIONS RECORD FIRST HALF, DELIVERING ON STRATEGIC GROWTH VENUES High visibility on a growing business… …fuels performance Safety Operational Financial Dividends & & Environment Highlights Performance Guidance 2,631 GJ/$MM 50 IDS rigs
Slide 6: New Growth Venues Gaining Momentum
ADNOC Classification: Public NEW GROWTH VENUES GAINING MOMENTUM ENERSOL ACCELERATION, TURNWELL STARTED OPERATIONS & REGIONAL EXPANSION CONTINUES Enersol Unconventional Resources Regional Expansion • Acquired three companies, cumulative total • Turnwell started operations, drilling its first • ADNOC
Slide 7: 2. Operational Highlights
ADNOC Classification: Public 2. OPERATIONAL HIGHLIGHTS ADNOC DRILLING 7
Slide 8: Expanding Fleet, Growing Well Count
ADNOC Classification: Public EXPANDING FLEET, GROWING WELL COUNT KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Durations (Days) Commentary Onshore Jackup Island Onshore Offshore 140 92 › Added eleven land rigs in 1H24, 137 85 84 including three land rigs in 2Q24. Fleet 116 10 10 35 count at
Slide 9: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Public DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rig Rigs Energy Optimization • Madinat Zayed camp powered by the • Acquired a total of 16
Slide 10: 3. Financial Performance
ADNOC Classification: Public 3. FINANCIAL PERFORMANCE ADNOC DRILLING 10
Slide 11: Financial Highlights
ADNOC Classification: Public FINANCIAL HIGHLIGHTS RECORD SECOND QUARTER RESULTS Revenue ($ Million) EBITDA ($ Million) Net Income ($ Million) % growth % EBITDA margin % growth 50% 49% 50% 7% 29% 935 6% 935 295 295 886 275 48% 472 472 29% 724 437 228 344 2Q23 2Q24 1Q24 2Q24 2Q23 2Q24 1Q24 2Q24 2Q23 2
Slide 12: Segmental Revenue
ADNOC Classification: Public SEGMENTAL REVENUE HIGHEST SECOND QUARTER REVENUE DRIVEN BY FLEET EXPANSION AND OILFIELD SERVICES Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 27% 7% 48% 2% 2Q24 revenue +29% YoY and +6% 284 278 284 441 441 sequentially to $935 million. 41
Slide 13: EBITDA Generation
ADNOC Classification: Public EBITDA GENERATION INDUSTRY-LEADING MARGINS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % EBITDA margin % EBITDA margin 2Q24 EBITDA grew 37% YoY to $472 48% 48% 67% 67% 46% 46% 66% 65% million, yielding an industry leading margin 211 211 191 191 of 50% 190
Slide 14: Higher Growth Targets
ADNOC Classification: Public HIGHER GROWTH TARGETS INCREASING FULL YEAR 2024 AND MEDIUM-TERM GUIDANCE FY2024 FY2024 Medium-Term Guidance (USD, Million) Previous Guidance New Guidance Revenue 3,600 – 3,800 3,700 – 3,850 • Revenue CAGR in the 14% - 18% from 2023 base (previous range: 12% - 16%) Onshor
Slide 15: New Dividend Policy in Action
ADNOC Classification: Public NEW DIVIDEND POLICY IN ACTION 2024 INTERIM DIVIDEND +10% YEAR-ON-YEAR New Dividend Policy Approved By Shareholders › At its General Shareholder Meeting held on 24 June 2024, ADNOC Drilling shareholders approved a progressive dividend policy that will see dividends grow b
Slide 16: Increase in Free Float
ADNOC Classification: Public INCREASE IN FREE FLOAT ADNOC 5.5% SECONDARY SALE TO BOOST LIQUIDITY & INDEXATION › During the second quarter, ADNOC offered ADNOC Drilling shares through a bookbuild offering to professional investors in the UAE and institutional investors elsewhere. › The successful ins
Slide 17: 5. Closing Remarks
ADNOC Classification: Public 5. CLOSING REMARKS ADNOC DRILLING 17
Slide 18: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Record quarter driven by Interim dividend approved Three Enersol investments, Delivering on our ESG fleet expansion, OFS growth and increased FY2024 / Turnwell live drilling and agenda by pursuing and cost efficiencies medium-term guidance contract for ne
Slide 19: Appendix
ADNOC Classification: Public APPENDIX ADNOC DRILLING 19
Slide 20: Quarterly Progress
ADNOC Classification: Public 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 unconven
Slide 21: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK & PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • GHG Abatement at 13.04 KtCO2e in 1H24 versus • Economic performance of the Company • 14 recordabl
Slide 22: Strong Operational Performance
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Segment 2Q24 Highlights › AD137 completed two wells in Jordan. › AD-217 drilled the longest lateral section in unconventional oil with a 6,000 feet interval compared to the Onshore previous record 3,300 feet.
Slide 23: Strong Cashflow & Balance Sheet
ADNOC Classification: Public 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 $518 million in 2Q24. › Earnings before
Slide 24: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICIPATED INVESTMENT RAMP-UP CapEx1 ($ Million) Commentary % revenue CapEx › 2Q24 CapEx including prepayments and accruals, 26% 25% amounted to $234million for 2Q24. 25% 12% › Rig fleet expansion program progressing, in
Slide 25: Ample Financial Headroom
ADNOC Classification: Public AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION Financial Headroom ($ Billion), indicative figures for illustrative purposes only ~ ~ ~ ~ ~ (@2x Capacity Target) 25
Slide 26: Financial Summary
ADNOC Classification: Public FINANCIAL SUMMARY (USD, Million) 2Q24 2Q23 YoY 1Q24 QoQ 1H24 1H23 YoY Revenue 935 724 29% 886 6% 1,821 1,440 26% Opex1 (464) (380) 22% (451) 3% (915) (763) 20% Share of profit of an associate 1 - NM 2 NM 3 - NM EBITDA2 472 344 37% 437 8% 909 677 34% Depreciation and amor
Slide 27: Segmental Results
ADNOC Classification: Public SEGMENTAL RESULTS (USD, Million) 2Q24 2Q24 YoY 1Q24 QoQ 1H24 1H23 YoY Revenue 935 724 29% 886 6% 1,821 1440 26% Onshore 441 346 27% 411 7% 852 701 22% Offshore Jack-up 284 192 48% 278 2% 562 376 49% Offshore Island 53 52 2% 51 4% 104 103 1% Oilfield Services (OFS) 157 13
Slide 28: Thank You
ADNOC Classification: Public To access further materials on earnings and Enersol, please click here. www.adnocdrilling.ae ir@adnocdrilling.ae THANK YOU ADNOC DRILLING 28
ADNOC Drilling Company PJSC — Q2 2024 Earnings Presentation on 6ix