Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q3 2024 Earnings Presentation
27 slides from Adnoc Drilling Company Pjsc's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Results Presentation
ADNOC Classification: Public THIRD QUARTER 2024 RESULTS PRESENTATION October 30, 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 Continues
ADNOC Classification: Public ROBUST GROWTH CONTINUES RECORD THIRD QUARTER 2024 - KEY HIGHLIGHTS & STRATEGIC DEVELOPMENTS Safety Financial Operational & Environment 2,625 GJ/$MM 32% YoY 95% Rig availability Energy intensity vs target of 2,719 3Q24 revenue increase Overall fleet availability at end of
Slide 6: New Growth Venues Gaining Momentum
ADNOC Classification: Public NEW GROWTH VENUES GAINING MOMENTUM ENERSOL ACQUISITIONS CONTINUE, UNCONVENTIONAL ACCELERATION, REGIONAL EXPANSION Enersol Unconventional Resources Regional Expansion • Acquired three companies, cumulative total • Turnwell successfully & efficiently • ADNOC Drilling recei
Slide 7: 2. Operational Highlights
ADNOC Classification: Public 2. OPERATIONAL HIGHLIGHTS ADNOC DRILLING 7
Slide 8: Expanding Operations, Growing Well Count
ADNOC Classification: Public EXPANDING OPERATIONS, GROWING WELL COUNT KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Durations (Days) Commentary Onshore Jackup Island Onshore Offshore 140 140 92 95 › Added eleven land rigs in 9M24. Fleet 85 124 10 10 count at 140 rigs, up 21% YoY. 10 35 35 T
Slide 9: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Public DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rig Rigs Energy Optimization • Madinat Zayed camp powered by the • 16 newbuild hybrid rig
Slide 10: 3. Financial Performance
ADNOC Classification: Public 3. FINANCIAL PERFORMANCE ADNOC DRILLING 10
Slide 11: Financial Highlights
ADNOC Classification: Public FINANCIAL HIGHLIGHTS RECORD THIRD QUARTER RESULTS Revenue ($ Million) EBITDA ($ Million) Net Income ($ Million) % growth % EBITDA margin % growth 32% 10% 49% 50% 50% 50% 30% 14% 1,026 1,026 510 510 335 335 935 472 295 776 257 381 3Q23 3Q24 2Q24 3Q24 3Q23 3Q24 2Q24 3Q24 3
Slide 12: Segmental Revenue
ADNOC Classification: Public SEGMENTAL REVENUE HIGHEST THIRD QUARTER REVENUE DRIVEN BY FLEET ACTIVITY AND OILFIELD SERVICES Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 29% 10% 46% 290 2% 290 3Q24 revenue +32% YoY and +10% 487 487 284 441 sequentially to $1,026 milli
Slide 13: EBITDA Generation
ADNOC Classification: Public EBITDA GENERATION INDUSTRY-LEADING MARGINS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % EBITDA margin % EBITDA margin 3Q24 EBITDA increased 34% YoY to $510 50% 49% 48% 49% 66% 68% 67% 68% million, yielding an industry leading margin 241 241 198 191 198 o
Slide 14: Enhanced Visibility Leads to Guidance Update
ADNOC Classification: Public ENHANCED VISIBILITY LEADS TO GUIDANCE UPDATE FULL YEAR 2024 GUIDANCE POSITIVELY UPDATED FY2024 FY2024 Medium-Term Guidance (USD, Million) Previous Guidance New Guidance Revenue 3,700 – 3,850 3,800 – 3,900 • Revenue CAGR in the 14% - 18% from 2023 base Onshore Revenue 1,6
Slide 15: 5. Closing Remarks
ADNOC Classification: Public 5. CLOSING REMARKS ADNOC DRILLING 15
Slide 16: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Record quarter MSCI supports broadening Enersol progresses, Delivering on our ESG and guidance updated of investor base unconventional business agenda by pursuing acceleration ambitious goals Paving the way for further growth 16
Slide 17: Appendix
ADNOC Classification: Public APPENDIX ADNOC DRILLING 17
Slide 18: Phase 1 Unconventional - Illustrative
ADNOC Classification: Public PHASE 1 UNCONVENTIONAL - ILLUSTRATIVE1 UNCONVENTIONAL NET PROFIT MARGIN EXPECTED BROADLY IN LINE WITH OFS SEGMENT Consolidation mechanism allows for realization of synergies across the unconventional business ADNOC Onshore awards ADNOC Drilling mandates Turnwell ADNOC Dr
Slide 19: 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 20: 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 18.7 KtCO2e in 9M24 versus • Economic performance of the Company • 10 recordable
Slide 21: Strong Operational Performance
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Segment 3Q24 Highlights › All 16 hybrid land rigs are operational. Onshore › Successfully installed 4 solar mobile containers on AD-51 in July. › AD-66 drilled 4,590 feet in a 24-hour period, ranked as the 9th
Slide 22: 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 $315 million in 3Q24. ) › Earnings befo
Slide 23: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICIPATED INVESTMENT RAMP-UP CapEx1 ($ Million) Commentary % revenue CapEx › 3Q24 CapEx including prepayments and accruals, 76% 20% 25% 20% amounted to $201 million for 3Q24. 592 › Pre-payments in the period were mostly
Slide 24: Ample Financial Headroom
ADNOC Classification: Public AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION Financial Headroom ($ Billion), indicative figures for illustrative purposes only ~ ~ ~ ~ ) ~ E T u dance d po nt et ebt otent al et ebt nanc al evera e eadroom ema n n Contr but on to (@2x Capacity T
Slide 25: Financial Summary
ADNOC Classification: Public FINANCIAL SUMMARY (USD, Million) 3Q24 3Q23 YoY 2Q24 QoQ 9M24 9M23 YoY Revenue 1,026 776 32% 935 10% 2,847 2,216 28% 1 Opex (518) (395) 31% (464) 12% (1,433) (1,158) 24% 2 Share of profit of joint venture 2 - NM 1 100% 5 - NM EBITDA3 510 381 34% 472 8% 1,419 1,058 34% Dep
Slide 26: Segmental Results
ADNOC Classification: Public SEGMENTAL RESULTS (USD, Million) 3Q24 3Q23 YoY 2Q24 QoQ 9M24 9M23 YoY Revenue 1,026 776 32% 935 10% 2,847 2,216 28% Onshore 487 378 29% 441 10% 1,339 1,079 24% Offshore Jack-up 290 199 46% 284 2% 852 575 48% Offshore Island 52 54 -4% 53 -2% 156 157 -1% Oilfield Services
Slide 27: 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 27
ADNOC Drilling Company PJSC — Q3 2024 Earnings Presentation on 6ix