Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q2 2023 Earnings Presentation
27 slides from Adnoc Drilling Company Pjsc's earnings presentation, Aug 7, 2023
Slide 1: Second Quarter 2023 Results Presentation
ADNOC Classification: Public SECOND QUARTER 2023 RESULTS PRESENTATION AUGUST 7, 2023 1 ADNOC DRILLING
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 2Q 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 ADNOC
Slide 4: 2Q Highlights
ADNOC Classification: Public 2Q HIGHLIGHTS 4 ADNOC DRILLING
Slide 5: Robust Earnings Growth Driven by Expanding Rig Fleet
ADNOC Classification: Public ROBUST EARNINGS GROWTH DRIVEN BY EXPANDING RIG FLEET Safety Financial Operational & Environment 27,032 13% 18 Rigs GJ/Rig energy intensity versus target of 27,806 Y-o-Y revenue increase in 1H23 Acquired in 1H23, 16 hybrid land rigs & 2 jack-ups GJ/Rig in 1H23 0.46 TRIR 4
Slide 6: Executing on Our Strategy
ADNOC Classification: Public 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 uncon
Slide 7: Operational Highlights
ADNOC Classification: Public OPERATIONAL HIGHLIGHTS 7 ADNOC DRILLING
Slide 8: Growing Fleet Leading to Operational Efficiency
ADNOC Classification: Public GROWING FLEET LEADING TO OPERATIONAL EFFICIENCY KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Duration (days) Commentary Onshore Jackup Island Onshore Offshore 116 159 wells drilled in 2Q23 compared to 142 115 84 105 78 wells in 1Q23 10 10 67 10 24 31 31 37 41 4
Slide 9: Strong Operational Performance Across the Business
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE ACROSS THE BUSINESS SEGMENTAL OPERATING HIGHLIGHTS Onshore ▪ 94% rig availability for Onshore operations in 2Q23 versus 93% in 1Q23 ▪ Completed drilling for the first fully sequestered CO2 injection well in a carbonate saline aquifer during
Slide 10: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK AND PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • Support ADNOC’s target to decrease GHG intensity • Economic performance of the Company improved
Slide 11: 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 Rigs Remote Operation Center (ROC) • Madinat Zayed: nearing completion, • Acquired 6 newb
Slide 12: Financial Performance
ADNOC Classification: Public FINANCIAL PERFORMANCE 12 ADNOC DRILLING
Slide 13: Financial Highlights
ADNOC Classification: Public FINANCIAL HIGHLIGHTS STRONG EBITDA GROWTH DRIVES UP PROFITABILITY (USD, Millions) Revenue EBITDA Net Profit % growth % EBITDA margin % growth 1% 48% 47% 48% 12% 4% 8% 45% 724 716 724 344 344 228 228 333 219 669 300 204 2Q22 2Q23 1Q23 2Q23 2Q22 2Q23 1Q23 2Q23 2Q22 2Q23 1Q
Slide 14: Segmental Revenue
ADNOC Classification: Public SEGMENTAL REVENUE OFFSHORE JACK-UP AND OFS DELIVER IMPRESSIVE YEAR-ON-YEAR GROWTH (USD, Millions) Onshore Offshore Jack-up Commentary % growth % growth Offshore Jack-up and OFS drive 8% YoY increase in revenue to $724 million -10% -3% 33% 4% 383 355 192 192 346 346 184 O
Slide 15: EBITDA Generation
ADNOC Classification: Public EBITDA GENERATION INDUSTRY-LEADING MARGINS (USD, Millions) Onshore Offshore Jack-up Commentary % EBITDA margin % EBITDA margin 2Q23 EBITDA up 15% over prior year driven by 49% 49% 66% 66% robust revenue growth and strong margins 46% 46% 57% 188 173 126 126 Onshore: 2Q23
Slide 16: Strong Cashflow and Balance Sheet
ADNOC Classification: Public 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 • 2Q23 cash from operating activities came at $395 million, up 93%
Slide 17: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION RAMP UP EXPECTED IN THE SECOND HALF (USD, Millions) CapEx Commentary % of revenue CapEx 31% • 2Q23 CapEx of $181 million, slightly lower than 25% 25% expected due to phasing in the payment for rig 207 181 181 acquisitions 11% • Rig fleet ex
Slide 18: Guidance
ADNOC Classification: Public GUIDANCE 18 ADNOC DRILLING
Slide 19: Delivering on Growth Targets
ADNOC Classification: Public DELIVERING ON GROWTH TARGETS GUIDANCE REITERATED, ACCELERATION EXPECTED IN SECOND HALF, SKEWED TOWARDS 4Q 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
Slide 20: Accelerated Growth Targets
ADNOC Classification: Public 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 50
Slide 21: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS 21 ADNOC DRILLING
Slide 22: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Strong earnings SPA signed for 16 Delivering on our Enabling ADNOC’s growth driven by newbuild hybrid ESG agenda by accelerated expanding fleet and land units and 2 pursuing ambitious production capacity cost efficiencies jack-ups in 1H goals targets On t
Slide 23: Appendix
ADNOC Classification: Public APPENDIX 23 ADNOC DRILLING
Slide 24: Financial Summary 2Q23
ADNOC Classification: Public FINANCIAL SUMMARY 2Q23 (USD, Millions) 2Q23 2Q22 YoY 1Q23 QoQ 1H23 1H22 YoY Revenue 724 669 8% 716 1% 1,440 1,270 13% Opex1 (380) (369) 3% (383) -1% (763) (690) 11% EBITDA2 344 300 15% 333 3% 677 580 17% Depreciation and amortization (103) (89) 16% (102) 1% (205) (190) 8
Slide 25: Segmental Results 2Q23
ADNOC Classification: Public SEGMENTAL RESULTS 2Q23 (USD, Millions) 2Q23 2Q22 YoY 1Q23 QoQ 1H23 1H22 YoY Revenue 724 669 8% 716 1% 1,440 1,270 13% Onshore 346 383 -10% 355 -3% 701 702 0% Offshore Jack-up 192 144 33% 184 4% 376 288 31% Offshore Island 52 51 2% 51 2% 103 101 2% Oilfield Services (OFS)
Slide 26: Our Investment Proposition
ADNOC Classification: Public 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 by
Slide 27: Thank You
ADNOC Classification: Public THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae 27 ADNOC DRILLING
ADNOC Drilling Company PJSC — Q2 2023 Earnings Presentation on 6ix