Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2014 Earnings Presentation
24 slides from Anton Oilfield Services's earnings presentation, March 2015
Slide 1: 2014 Annual Results
2014 Annual Results 15/03/26
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 2014 Annual Results Summary Operating & Financial Review Outlook Q&A 3
Slide 4: 2014 Annual Results Summary
2014 Annual Results Summary Profit Attributable to Equity Revenue Operating Profit Holders of the Company RMB million RMB million RMB million 600 550 500 450 400 400.0 380.0 350 360.0 2,533.5 340.0 2,071.2 300 572.4 320.0 300.0 280.0 250 260.0 240.0 220.0 200 200.0 180.0 382.6 150 160.0 140.0 120.0
Slide 5: Business Highlights
Business Highlights 1 Revenue declined notably. AR turnover days increased; occurred net loss in 2014 due to lower margin caused by lower revenue and higher downward pricing pressure, as well as the increased costs from preparations for long-term development 2 Continued to improve the comprehensive
Slide 6: Agenda
Agenda 2014 Annual Results Summary Operating & Financial Review Outlook Q&A 6
Slide 7: Domestic Market Faced Difficulties, Hotspot Markets Remained Overseas
Domestic Market Faced Difficulties Hotspot Markets Remained Overseas Domestic Overseas Domestic O&G industry readjustment coupled with Global oil prices fell precipitously in 2H 2014, sliding oil prices forced customers to cut CAPEX, leaving the industry in a dire situation. market protectionism pic
Slide 8: Domestic Business Declined, Overseas Business Grew Steadily
Domestic Business Declined Overseas Business Grew Steadily Revenue by Geographic Market Domestic Markets Northwest - Tarim Basin: Investment slowed down, some RMB million existing businesses shrank; waste management and workover services were launched 22.7% 575.9 North - Erdos Basin: Revenue slid, p
Slide 9: Product Line Improvements Supported Cluster Growth
Product Line Improvements Supported Cluster Growth Drilling Technology: Revenue on drilling fluid Revenue by Cluster service fell significantly; actively promote RMB million partnerships on reservoir production management and integrated general contracting 12.4% 314.7 service; take the opportunity t
Slide 10: Integrated Service Model
Integrated Service Model In 2014, reservoir production management model achieved breakthrough, started offering general contracting solutions for the tight oil project in the Subei Basin and the shale gas project in Hubei from reservoir to drilling and well completion Already in possession of a prod
Slide 11: Controlled Overall Labor Costs by Optimizing and Rightsizing
Controlled Overall Labor Costs by Optimizing and Rightsizing and Improved Human Resources Structure Enforced more rigorous performance review and disqualification schemes; strictly eliminated employees who failed performance review, controlled overall human resources cost Expedited internal transfer
Slide 12: Working Capital Management
Working Capital Management As a result of the harsh market environment and customers’ shift of operating strategy, the Group saw a significant increase of its capital turnover days. 2014 2013 Change Trade receivables turnover days 228 150 78 Inventory turnover days 158 131 27 Trade payables turnover
Slide 13: Agenda
Agenda 2014 Annual Results Summary Operating & Financial Review Outlook Q&A 13
Slide 14: Domestic Market Outlook
Domestic Market Outlook Short- Domestic market environment remains challenging and competition remains term fierce. As domestic environmental requirements tighten, oil companies may spend more time on preparations to meet environmental measures, causing project delay The gradual opening up of domest
Slide 15: Overseas Market Outlook
Overseas Market Outlook Short- Oil companies announced deep cuts in their CAPEX budgets for term 2015. The Americas market was among the worst hit. Iraq market needs higher production because of lower fiscal income, but downward pricing pressure and project delay risk still exist Long- Continued pro
Slide 16: Product Line Outlook
Product Line Outlook Land drilling service received a year-long order domestically, and continues to explore overseas Drilling markets Intensify efforts on oilfield waste management service and prepare for long-term development Improved value chain with new rotary steerable directional drilling tool
Slide 17: Strategic Resources Alignment
Strategic Resources Alignment Capital Actively look for new financing channels to lower cost of capital; intensify AR collection efforts, reduce working capital requirements; work with financial institutions; restructure trade receivables Has reached an initial intent with a bank regarding the refin
Slide 18: Outlook
Outlook In 2015, the Group will promote cost control, decrease raw material, labor cost, sales cost dramatically Compared to competitors, the Group has a full coverage of product lines covering the entire process of oil and gas production. Will continue to implement the full-coverage strategy of pro
Slide 19: Respond Swiftly to Challenges, Promote Cost Control
RESPOND SWIFTLY TO CHALLENGES, PROMOTE COST CONTROL, AND PLAY TO OWN ADVANTAGES, KEEP MARKET SHARES, OPEN NEW MARKETS, AND BE FULLY PREPARED FOR INCOMING OPPORTUNITIES.
Slide 20: Agenda
Agenda 2014 Annual Results Summary Operating & Financial Review Outlook Q&A 20
Slide 21: Appendices
ANTON Appendices RBS 29S Oriental wisdom , Global sharing
Slide 22: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement For the year ended 31 December (RMB million) 2014 2013 Revenue 2,071.2 2,533.5 Cost of Sales (1,425.8) (1,411.0) Gross Profit 645.4 1,122.5 Other gains, net (1.8) 20.0 Selling expenses (190.9) (173.1) Administrative expenses (361.2) (299.8) Research and deve
Slide 23: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million 31 Dec. 2014 31 Dec. 2013 Property, plant and equipment 2,293.4 1,601.7 Land use rights 61.0 22.0 Intangible assets 392.4 375.5 Investment in a jointly controlled entity 5.0 16.8 Other non-current assets 88.6 60.0 Deferred income tax assets 57.3 25.0 Inventories
Slide 24: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 31 December (RMB million) 2014 2013 Net cash generated from operating activities (619.9) 378.5 Net cash generated from investing activities (575.6) (808.7) Net cash generated from financing activities 193.1 1,694.8 Net increase (decrease) in cash and cash equiva
Anton Oilfield Services Group — FY2014 Earnings Presentation on 6ix