Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — H1 2016 Earnings Presentation
32 slides from Anton Oilfield Services's earnings presentation, Aug 29, 2016
Slide 1: 2016 Interim Results
2016 Interim Results 2016/08/29
Slide 2: Disclaimer
Disclaimer This presentation is prepared by Anton Oilfield Services Group (the “Company”) solely for the purpose of corporate communication and general reference that would not be reproduced or redistributed to any other person without the permission of the Company. The presentation is not intended
Slide 3: Agenda
Agenda 1 2016 Interim Results summary 2 2016 Second Half Outlook 3 Three-year Strategy Update 4 Q&A 3
Slide 4: 2016 Interim Results Summary
2016 Interim Results Summary Profit Attributable to Equity Holders of the Revenue Operating Profit Company RMB million RMB million RMB million -21.8% 861.5 673.7 +37.8% +11.9% 44.8 32.5 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 -73.8 -65.0 4
Slide 5: Business Summary
Business Summary Continued to grow new orders, order backlog reached record high Total revenue declined affected by low oil price and project delay Remarkable achievement on cost control with reduced labor cost and operating expenses Increased cash outflow in H1, overall cash flow still intense Intr
Slide 6: Oil Price Reach a Record Low, CAPEX from Domestic Reduced Continually
Oil Price Reach a Record Low, CAPEX from Domestic Reduced Continually BRENT Oil Price Main Domestic Customer CAPEX USD/BARREL RMB million 70 60 17.6% 1H 2015 Average 50 1H 2016 Average 40 48,005 39,550 30 1H 2016 vs 1H 2015 20 a decrease of 31% 10 1H 2015 1H 2016 2015 2016 0 Source: Bloomberg 6
Slide 7: New Orders Increased, Revenue Declined
New Orders Increased, Revenue Declined 1H New orders Orders Converting Ratio 1H Revenue Revenue /（initial order backlog+ RMB million RMB million new orders） 1,486.9 1,276.7 967.5 38.9% 651.0 24.3% 861.5 673.7 22.0% 625.7 519.4 12.7% 1H 2015 1H 2016 1H 2015 1H 2016 1H 2015 1H 2016 Overseas Domestic 7
Slide 8: Overseas Revenue Exceeded Domestic, New Overseas Markets Expanded
Overseas Revenue Exceeded Domestic, New Overseas Markets Expanded Overseas Market Performance New Markets overseas revenue RMB million overseas revenue share 450 389.0 393.9 307.5 Iraq 300 58.5% Pakistan 45.2% UAE [VALUE] Oman 150 Ethiopia 0 1H 2014 1H 2015 1H 2016 Increased substantially during rep
Slide 9: Revenue from Oil Production Continued to Grow
Revenue from Oil Production Continued to Grow Revenue Breakdown by Cluster Well completion Drilling Oil Production 1,000 800 179.1 600 185.9 377.9 400 278.5 200 304.5 209.3 0 1H 2015 1H 2016 9
Slide 10: Continuous Workforce Optimization, Labor Cost Substantially Decreased
Continuous Workforce Optimization, Labor Cost Substantially Decreased Employee Headcount Labor Cost RMB million 5,000 470.5 438.2 -60.0% 259.6 248.9 2,500 -24.3% 189.3 210.8 159.6 0 2014 2015 2016 Jan 2014 Jan 2015 Jan 2016 June 2016 Half 1 Half 2 10
Slide 11: Increased Working Capital, Overall Cash Flow Intense
Increased Working Capital , Overall Cash Flow Intense Net Working Capital Operating Cash flow Capital Expenditure RMB million RMB million RMB million -33.3% 1H 2015 1H 2016 -32.5 1,165.0 -153.1 -120.6 +30.8% 890.4 167.7 111.8 2015.12.31 2016.06.30 1H 2015 1H 2016 11
Slide 12: Stable Development in Iraq, Introduced a Strategic Partner
Stable Development in Iraq, Introduced a Strategic Partner New Orders in Iraq Order Backlog in Iraq RMB million 图表标题 RMB million 836.4 2,370.7 1,782.0 451.1 1H 2015 1H 2016 2015.12.31 2016.06.30 Subsurface Wellbores Business • Drilling • Well Completion • Oil Production Surface EPC Business • Engine
Slide 13: Agenda
Agenda 1 2016 Interim Results summary 2 2016 Second Half Outlook 3 Three-year Strategy Update 4 Q&A 13
Slide 14: The Second Half Outlook
The Second Half Outlook Market condition remains tough, recovery starts in partial markets, and it is expected to show on next year Prepared for resuming rapid growth upon market recovery with 3.56 billion order backlog Expand Iraqi market and Chinese company invested overseas markets; Speed up repl
Slide 15: Speed up development in dominate overseas markets
Speed up development in dominate overseas markets 1 Iraqi markets Enhance cooperation with IOCs Replace the market share of international oil services companies 2 Chinese company invested overseas markets Construct strategic partnership with Chinese investors overseas Foster key markets alon
Slide 16: Orders Backlog abundant, Execution Progress Accelerated
Orders Backlog abundant, Execution Progress Accelerated Key Projects in execution or those received notice of Order Backlog commence from customer RMB million Total projects amounted to RMB 1,620 million Central America, Asia & 35.2 Iraq oil production maintenance project Africa, (RMB 510 million)
Slide 17: Promote Cost Reduction and Lift Efficiency, Compete Internationally
Promote Cost Reduction and Lift Efficiency Compete Internationally Promote equipment utilization rate Promote project execution efficiency Reduce labor cost and operating expenses 17
Slide 18: Strengthen Technology Innovation, Improve Business Profitability
Strengthen Technology Innovation, Improve Business Profitability Strengthen technology innovation, plan to publish a series of proprietary and internationally competitive products and services , to improve profitability Anton Sand Control products Anton Coiled Tubing services 请提供图片 Part of the publi
Slide 19: Debt Structure Changes to Date
Debt Structure Changes to Date 3,000 2,717.0 2,459.1 2,446.9 199.5 199.9 1,055.7 Repaid 200millon 2,000 641.7 MTN in August 675.0 Domestic borrowings increased RMB 414.1 1,000 1,650.8 compared with 30 1,584.6 1,622.9 June 2016 0 USD Bond 2015.12.31 2016.6.30 To Date increased due to fluctuation of e
Slide 20: Agenda
Agenda 1 2016 Interim Results summary 2 2016 Second Half Outlook 3 Three-year Strategy Update 4 Q&A 20
Slide 21: Three-year Strategy Update
Three-year Strategy Update Back to Growth Path upon Market Recovery “Stimulation and Cost Reduction” Strategy Distinguished by continuous technology innovation “Integrated”Product Strategy Develop products and technologies with reservoirs needs as the core “Globalized”Market Strategy Speed up covera
Slide 22: Closing remarks and thanks
We are experiencing a most difficult year, while we have been well adapted to current oil price through fully adjustments. We will strive further to replace market share of international competitors in overseas markets ,taking advantage of our international technology products and low cost , back to
Slide 23: Agenda
Agenda 1 2016 Interim Results summary 2 2016 Second Half Outlook 3 Three-year Strategy Update 4 Q&A 23
Slide 24: Appendix
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Slide 25: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement As at 30 June（RMB million） 2016 2015 Revenue 673.7 861.5 Cost of Sales （499.6） (625.0) Gross Profit 174.1 236.6 Other gains, net 65.5 13.8 Selling expenses (49.9) (72.0) Administrative expenses (123.6) (129.1) Research and development expenses (17.2) (9.2) S
Slide 26: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million As at 30 June 2016 Ass at 31 December 2015 Property, plant and equipment 2,236.8 2,355.5 Land use rights 48.5 59.9 Intangible assets 386.1 379.5 Investment in a jointly controlled entity 0 4.0 Other non-current assets 63.0 67.3 Deferred income tax assets 56.6 64
Slide 27: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 30 June（RMB million） 2016 2015 Net cash generated from operating activities (153.1) (32.4) Net cash generated from investing activities (34.8) (168.7) Net cash generated from financing activities (67.7) (296.7) Net increase (decrease) in cash and cash equivalent
Slide 28: Appendix 4: Business Cluster Mix
Appendix 4: Business Cluster Mix 1H 2016 1H 2016 1H 2016 EBITDA/ Revenue Breakdown EBITDA Breakdown EBITDA Margin RMB million 100.0 33.0% 31.0% 32.1% 34% 90.0 27.6% 31.1% 27.7% 32.1% 80.0 32% 70.0 60.0 314.2 30% 28% 50.0 40.0 184.4 156.8 26% 86.4 59.6 30.0 24% 20.0 69.1 22% 10.0 41.3% 40.2% 0.0 20%
Slide 29: Appendix 5: Cost Analysis
Appendix 5: Cost Analysis Costs/Expenses by function 1H 2016 1H 2015 Change 1H 2016 1H 2015 Change % of Revenue % RMB million % Cost of sales 74.2% 72.5% +1.7 499.6 625.0 -20.1% Selling expenses 7.4% 8.4% -1.0 49.9 72.0 -30.7% Administrative expenses 18.3% 15.0% +3.3 123.6 129.1 -4.3% R&D expenses 2
Slide 30: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters Description and Constituent Business Lines Drilling Technology Provides engineering technical services and products during the drilling stage to solve problems Cluster encountered in directional drilling, drilling assessment, drilling acceleration,
Slide 31: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Description Constituent Business Lines Well Completion Cluster Provides integrated well completion and stimulation services from integrated solutions for well cementing and completion, production well completion, equipment, tools and materials I
Slide 32: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Description Constituent Business Lines Oil Production Cluster Provides engineering services and products for oil companies during well completion and production; enables economical recovery based on reservoir geological conditions through produc
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