Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q1 2023 Earnings Presentation
27 slides from Adnoc Drilling Company Pjsc's earnings presentation, May 11, 2023
Slide 1: First Quarter 2023 Results Presentation
ADNOC Classification: Internal FIRST QUARTER 2023 RESULTS PRESENTATION MAY 11, 2023 1 ADNOC DRILLING
Slide 2: Disclaimer
ADNOC Classification: Internal 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 pur
Slide 3: Agenda & Presenters
ADNOC Classification: Internal AGENDA & PRESENTERS 1Q Highlights Abdulrahman Abdullah Al Seiari Chief Executive Officer Operational Highlights Financial Performance Esa Ikaheimonen Chief Financial Officer Guidance Closing Remarks Emri Zeineldin Senior Vice President, Oilfield Services Appendix 3 ADN
Slide 4: 1Q Highlights
ADNOC Classification: Internal 1Q HIGHLIGHTS 4 ADNOC DRILLING
Slide 5: Robust Earnings Growth Driven by Expanding Rig Fleet
ADNOC Classification: Internal ROBUST EARNINGS GROWTH DRIVEN BY EXPANDING RIG FLEET Safety Financial Operational & Environment 13,205 19% 10 GJ/Rig energy intensity in 1Q23 versus target of Y-o-Y revenue increase in 1Q23 Newbuild hybrid land rigs acquired 13,903 GJ/Rig 0.43 TRIR 47% 95% Versus targe
Slide 6: Executing on Our Strategy
ADNOC Classification: Internal EXECUTING ON OUR STRATEGY LONG-TERM STRATEGY FOR GROWTH FOCUSED ON FOUR AREAS 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 day and unc
Slide 7: Operational Highlights
ADNOC Classification: Internal OPERATIONAL HIGHLIGHTS 7 ADNOC DRILLING
Slide 8: Growing Fleet Leading to Operational Efficiency
ADNOC Classification: Internal GROWING FLEET LEADING TO OPERATIONAL EFFICIENCY KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Duration (days) Commentary Onshore Jackup Island Onshore Offshore 115 142 wells drilled in 1Q23 compared to 147 115 104 81 77 wells in 1Q22 10 10 67 10 24 31 31 41 41
Slide 9: Offshore Jack-up and OFS Drive Performance
ADNOC Classification: Internal OFFSHORE JACK-UP AND OFS DRIVE PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Onshore ▪ 93% Rig Availability for Onshore operations in 1Q23 versus 91% in 4Q22 ▪ AD-188 commenced operations in April and AD-189 under re-activation process commencing operations June ▪ Drilled
Slide 10: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Internal WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS OUR ESG FRAMEWORK AND 1Q23 PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • Support ADNOC’s target to decrease GHG intensity • In-country value at 43.4% versus
Slide 11: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Internal DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rigs Geothermal Energy • Project ongoing for five Central Camps • Acquired 10 newbuild
Slide 12: Financial Performance
ADNOC Classification: Internal FINANCIAL PERFORMANCE 12 ADNOC DRILLING
Slide 13: Financial Highlights
ADNOC Classification: Internal FINANCIAL HIGHLIGHTS ROBUST YEAR-ON-YEAR REVENUE GROWTH WITH HIGH PROFITABILITY (USD, Millions) Revenue EBITDA Net Income % growth % EBITDA margin % growth 48% 19% -2% 47% 47% 47% 25% -6% 716 733 716 353 234 219 333 333 219 601 280 175 1Q22 1Q23 4Q22 1Q23 1Q22 1Q23 4Q2
Slide 14: Segmental Revenue
ADNOC Classification: Internal SEGMENTAL REVENUE OFFSHORE JACK-UP AND OFS POWERING IMPRESSIVE YEAR-ON-YEAR GROWTH (USD, Millions) Onshore Offshore Jack-up Commentary % growth % growth Offshore Jack-up and OFS drive 19% Y-o-Y 28% 2% increase in revenue to $716 million 11% -6% 379 184 180 184 Onshore:
Slide 15: EBITDA Generation
ADNOC Classification: Internal EBITDA GENERATION INDUSTRY-LEADING MARGINS (USD, Millions) Onshore Offshore Jack-up Commentary % EBITDA margin % EBITDA margin 1Q23 EBITDA up 19% over prior year supported 57% 60% 57% by robust revenue growth and strong margins 49% 50% 49% 48% 59% 188 108 105 Onshore:
Slide 16: Strong Cashflow and Balance Sheet
ADNOC Classification: Internal STRONG CASHFLOW AND BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER ACCELERATED RIG FLEET GROWTH (USD, Millions) Cash from Operating Activities Commentary Cash from Operating Activities • 1Q23 cash from operating activities stood at $226 million, down
Slide 17: CapEx Supports Fleet Expansion
ADNOC Classification: Internal CAPEX SUPPORTS FLEET EXPANSION FLAT YEAR-ON-YEAR, EXPECTED TO RAMP OVER REMAINDER OF 2023 (USD, Millions) CapEx Commentary % of revenue CapEx 59% • 1Q23 CapEx of $76 million, in-line with the payment plans for our rig fleet expansion program 434 • Accelerated rig fleet
Slide 18: Guidance
ADNOC Classification: Internal GUIDANCE 18 ADNOC DRILLING
Slide 19: Delivering on Growth Targets
ADNOC Classification: Internal DELIVERING ON GROWTH TARGETS ACCELERATION EXPECTED IN BACK HALF OF THE YEAR, GUIDANCE REITERATED FY2023 Progression (USD, Millions)* Guidance *The graphs are not to scale and are for illustrative purposes only Revenue Progression Revenue $3,000 million - $3,200 million
Slide 20: Accelerated Growth Targets
ADNOC Classification: Internal ACCELERATED GROWTH TARGETS FY2023 AND MEDIUM-TERM GUIDANCE REITERATED (USD, Millions) FY2023 Guidance Medium-Term Guidance Revenue 3,000 - 3,200 • Revenue CAGR in the 12-16% range Onshore Revenue 1,500 - 1,600 • EBITDA margin around 50% with drilling margins exceeding
Slide 21: Closing Remarks
ADNOC Classification: Internal CLOSING REMARKS 21 ADNOC DRILLING
Slide 22: Closing Remarks
ADNOC Classification: Internal CLOSING REMARKS Robust year-on- SPA signed for the Delivering on our Enabling ADNOC’s year earnings purchase of 10 ESG agenda by accelerated growth driven by newbuild hybrid pursuing ambitious production capacity expanding rig fleet land drilling units goals targets On
Slide 23: Appendix
ADNOC Classification: Internal APPENDIX 23 ADNOC DRILLING
Slide 24: Financial Summary 1Q23
ADNOC Classification: Internal FINANCIAL SUMMARY 1Q23 1Q23 1Q22 Y-o-Y % 4Q22 Q-o-Q % (USD, Millions) FY22 FY21 Y-o-Y % 716 601 19% 733 -2% Revenue 2,673 2,269 18% (383) (321) 19% (380) 1% Opex1 -1,441 -1,222 18% 333 280 19% 353 -6% EBITDA2 1,232 1,047 18% (102) (101) 1% (110) -7% Depreciation and am
Slide 25: Segmental Results 1Q23
ADNOC Classification: Internal SEGMENTAL RESULTS 1Q23 (USD, Millions) 1Q23 1Q22 Y-o-Y % 4Q22 Q-o-Q % FY22 FY21 Y-o-Y % Revenue 716 601 19% 733 -2% 2,673 2,269 18% Onshore 355 319 11% 379 -6% 1,453 1,140 27% Offshore Jack-up 184 144 28% 180 2% 611 596 3% Offshore Island 51 50 2% 51 0% 204 204 - Oilfi
Slide 26: Our Investment Proposition
ADNOC Classification: Internal OUR INVESTMENT PROPOSITION VALUE CREATION PROFILE Near-term growth plans driven by the expansion of production capacity from 4 to 5 million barrels per day by 2027 Key enabler in achieving UAE’s goal of gas self-sufficiency and development of unconventional resources b
Slide 27: Thank You
ADNOC Classification: Internal THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae 27 ADNOC DRILLING
ADNOC Drilling Company PJSC — Q1 2023 Earnings Presentation on 6ix