Ades Holding Company · TADAWUL:2382
Ades — FY2023 Earnings Presentation
27 slides from Ades's earnings presentation, March 2024
Slide 1: ADES Holding Company FY 2023 Trading Update
ADES Holding Company FY 2023 Trading Update March 2024
Slide 2: Today's Presenters
Today’s Presenters AGENDA 1. JU Market Update 2. Business Update Hussein Badawy 3. Financial Update Dr. Mohamed Farouk Group Chief Executive Officer Group Chief Financial Officer 3. Q&A ……………. 2
Slide 3: Leader in Shallow Water Offshore and Onshore Drilling
Leader in Shallow Water Offshore and Onshore Drilling Global Scale Operations with 87 Rigs in 81 Countries Proven Consolidator Leading Scale & Profitability Through Cycles FY-22 FY-23 1 87 rigs3 Revenue SAR 2.5bn SAR 4.3bn 14 SAR 1.0bn SAR 2.1bn +2.2x4 since 2018 EBITDA Margin (%) ~43% ~49% 3 3 6 Pa
Slide 4: Jack-up Market Update
nta <2 ADES Jack-up Market Update
Slide 5: Marketed utilization is around 95% globally for jack-ups >300ft
Marketed utilization is around 95% globally for jack-ups >300ft Jack-ups average day rates, individual fixtures and utilization (2001-f2024) Source: Clarksons Securities Research 5
Slide 6: Middle East Demand Pressuring Scarce Jack-up Capacity
Middle East Demand Pressuring Scarce Jack-up Capacity 53 rigs moved from 2022 to 2023, creating tightness in other markets Rig reactivations and utilization 2015-2023 Rigs Transferred to Middle East Operators NW Europe to Middle East: China to Middle East • 35 (66%) to Saudi Aramco 1. Perro Negro 8
Slide 7: Tight Jack-up Market Conditions Providing for Elevated Day Rates
Tight Jack-up Market Conditions Providing for Elevated Day Rates Jack-up demand growing conservatively with 10-14 rigs annually through 2026* Jack-up orderbook showing only a small handful of orders (2001 – 2024YTD)* 423 410 396 Orderbook 369 Orderbook as % of marketed fleet 351 334 337 335 Order bo
Slide 8: Business Update
nta <2 ADES Business Update
Slide 9: Operational Highlights
Operational Highlights 98.0% in FY 2023 27.54 SAR bn as at FY 2023 (vs.98% FY 2022) (vs. SAR 27.39 bn in FY 2022) Utilization Rate1 Total Backlog c.5.35 Years 0.09 Weighted Average Remaining in FY 2023 Contract Tenor2 (vs. IADC standard of 0.51) Tenor RIFR 14 rigs out of the 19-rig mega tender in Sa
Slide 10: Financial Highlights
Financial Highlights SARmn, % YoY FY 2022 FY 2023 Revenue 2,467 4,332 + 75.6% EBITDA 1,049 2,139 + 104% As a % of Revenue 42.5% 49.4% + 6.9pp Net Profit 398 452 +13.7% As a % of Revenue 16.1% 10.4% - 5.7pp Normalized Net Profit1 257 473 + 84.2% As a % of Revenue 10.4% 10.9% + 0.5pp Source: ADES info
Slide 11: Evolution of Rigs by Status and Geography
Evolution of Rigs by Status and Geography Rig Count Evolution Offshore Rigs by Status (# of rigs) Onshore Rigs by Status (# of rigs) Total Rigs by Country FY 2023 Active Contracted Idle Active Contracted Idle Country 38 Offshore Onshore 49 49 36 1 2 Algeria - 6 7 6 11 Egypt 10 3 19 5 India 3 - 6* KS
Slide 12: Strong Backlog Providing Revenue and Cash Flow Visibility
Strong Backlog Providing Revenue and Cash Flow Visibility Significant Share from Offshore and GCC countries with Long-Term Contracts Backlog by Segment Backlog by Country More than 89% of backlog is coming from Gulf Cooperation Council KSA (GCC) countries, offering visibility and sustainability to t
Slide 13: ADES Expands Global Footprint with its First Long-term Contract in Indonesia
ADES Expands Global Footprint with its First Long-term Contract in Indonesia and Solidifies its Presence in Algeria and Egypt Delivering on Expansion Strategy - Operational in 8 Countries Worldwide Key Highlights of the Recent Contract Awards 1 rig Start of operations 3 Years ~SAR 803 mn 8 2H 2024 f
Slide 14: Committed to Operational Excellence & Sustainability
Committed to Operational Excellence & Sustainability Best-in-Class Safety Record Supported by Continued Innovation The REI Drives Levels of Activity and Renewals with Aramco Recordable Injury Frequency Rate (RIFR)1 IADC2 Local FTP4 Average Content3 10% 45% 0.51 Rig Efficiency REI Index (“REI”) Compo
Slide 15: Financial Update
nta <2 ADES Financial Update
Slide 16: Strong Ramp-up of Activity Leading to Significant Outperformance
Strong Ramp-up of Activity Leading to Significant Outperformance Backlog (SAR bn) Revenue (SAR mn) EBITDA (SAR mn) 75.6% 42.5% 49.4% 0.6% 4,332 26.7% 104.0% 27.39 27.54 2,467 28.6% 73.3% 2,139 71.4% 1,049 FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 Offshore Revenue Onshore Revenue EBITDA margin
Slide 17: Growth Achieved Across Geographies
Growth Achieved Across Geographies Revenue Evolution by Country (SAR mn) FY 2022 FY 2023 82.0% 2,861 56.6% 50.5% 71.5% 175.9% 120.6% 1,572 535 471 342 313 201 345 71 31 26 14 - 18 KSA Egypt Kuwait Qatar Algeria Tunisia India Group revenues increased 75.6% y-o-y in FY 2023 on account of: KSA ▪ The 82
Slide 18: Net Profitability and Equity Movements
Net Profitability and Equity Movements Net Profit (SAR mn) Group Equity (SAR mn) Statutory Net Profit Normalized Net Profit 1 156% 16.1% 10.4% 10.4% 10.9% 5,777 84.2% 452 473 398 2,258 257 FY 2022 FY 2023 FY 2022 FY 2023 % Margin Net profit was up 13.7% y-o-y in FY 2023, reflecting a high base effec
Slide 19: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 85.2% 85.4% 3% 3,923 4,048 104.5% 1,827 893 FY 2022 FY 2023 FY 2022 % Cash Conversion2 FY 2023 The Group’s free cashflow increased by 104.5% y-o-y mainly due to the growth in The Group’s CAPEX increased in line with management’s exp
Slide 20: Net Debt Evolution
Net Debt Evolution FY 2023 Net Debt Bridge1 (SAR mn) The balance of cash and cash equivalents as of 31 December 2023 amounted to SAR 432 mn. Out of the net IPO proceeds received as of 31 December 2023, SAR 3.1bn (c. 85%) was utilized in reducing the Group’s indebtedness, while the remaining c.15% wa
Slide 21: 2024 Outlook and Guidance
2024 Outlook and Guidance Strong outlook for 2024 with expected EBITDA ranging from SAR 2.89-3.04bn on account of continued operational growth, ramp-up of the Group’s recent expansions, and tight market conditions. Ramp-up of the Vacuum in attractive Group’s recent Strong global Additional markets s
Slide 22: Q&A
Q&A
Slide 23: Important Notice
Important Notice This document and information contained herein (the “Information”) has been prepared by ADES Holding Company (the “Company”) for background purposes only and does not purport to be a full, accurate, complete or comprehensive analysis of the Company’s business, financial or trading p
Slide 24: Appendix
nta <2 ADES Appendix
Slide 25: Fleet Status – Offshore (1/2)
Fleet Status – Offshore (1/2) Backlog Overview by Rig Rig Status Rig Name 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Admarine 261 KSA Admarine 262 Admarine 266 Admarine 655 Admarine
Slide 26: Fleet Status – Offshore (2/2)
Fleet Status – Offshore (2/2) Backlog Overview by Rig Rig Status Rig Name 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Egypt Admarine I Admarine II Admarine III Admarine IV Admarine V
Slide 27: Fleet Status – Onshore
Fleet Status – Onshore Backlog Overview by Rig Rig Rig Status Name 2024F 2025F 2026F 2027F 2028F 2029F 2030F 2031F 2032F 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Egypt Rig 810 Rig 815 ADES 1 Rig 155 Kuwait Rig 776 Rig 870 Rig 871 Rig