Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — FY2024 Earnings Presentation
28 slides from Adnoc Drilling Company Pjsc's earnings presentation, Feb 13, 2025
Slide 1: Full Year 2024 Results Presentation
ADNOC Classification: Public FULL YEAR 2024 RESULTS PRESENTATION February 13, 2025 1
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 Strategic Developments Abdulrahman Abdullah Al Seiari Operational Highlights Chief Executive Officer Financial Performance Youssef Salem Closing Remarks Chief Financial Officer Appendix 3
Slide 4: 1. Strategic Developments
ADNOC Classification: Public 1. STRATEGIC DEVELOPMENTS ADNOC DRILLING 4
Slide 5: Strong Growth Across the Business
ADNOC Classification: Public STRONG GROWTH ACROSS THE BUSINESS RECORD FOURTH QUARTER & FULL YEAR 2024 FY24 Highlights Milestones Top-line growth +32% YoY Highlights 142 Rigs $1.7 bn contract for unconventional driven by new rigs Revenue to $4bn+ Added 13 rigs to fleet Turnwell established to execute
Slide 6: Sustaining Growth with New Venues
ADNOC Classification: Public SUSTAINING GROWTH WITH NEW VENUES ENERSOL ACQUISITIONS CONTINUE, UNCONVENTIONAL DELIVERY, REGIONAL EXPANSION Enersol Unconventional Resources Regional Expansion • Acquired four companies, cumulative total • Successfully & efficiently completed the • ADNOC Drilling’s cont
Slide 7: 2. Operational Highlights
ADNOC Classification: Public 2. OPERATIONAL HIGHLIGHTS ADNOC DRILLING 7
Slide 8: Expanding Operations, Delivering More Wells
ADNOC Classification: Public EXPANDING OPERATIONS, DELIVERING MORE WELLS KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Durations (Days) Commentary Onshore Jackup Island Onshore Offshore 140 142 95 92 › Added 13 rigs to the fleet count, 11 129 82 land rigs and two jack-ups. 10 10 10 35 37 35
Slide 9: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Public DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rig Rigs Energy Optimization • Madinat Zayed camp powered by the • 16 newbuild hybrid rig
Slide 10: 3. Financial Performance
ADNOC Classification: Public 3. FINANCIAL PERFORMANCE ADNOC DRILLING 10
Slide 11: Record Full Year and 4Q Results
ADNOC Classification: Public RECORD FULL YEAR AND 4Q RESULTS OVERVIEW Revenue ($ Million) EBITDA ($ Million) Net Income ($ Million) % growth % EBITDA margin % growth 32% 26% 4,034 1,304 50% 3,057 49% 1,033 2,015 41% 21% 50% 50% 50% 1,483 16% 19% 1,187 399 1,026 329 335 841 510 596 424 4Q23 3Q24 4Q24
Slide 12: Revenue Sustained Growth
ADNOC Classification: Public REVENUE SUSTAINED GROWTH YEAR-ON-YEAR GROWTH ACROSS ALL SEGMENTS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % growth % growth 27% 1,893 40% 1,116 Record revenue over $4 billion in full year, 1,495 up 32% with growth across all segments 800 33% 17% › Onsh
Slide 13: Solid EBITDA Generation
ADNOC Classification: Public SOLID EBITDA GENERATION RETURNING INDUSTRY-LEADING MARGINS Onshore ($ Million) Offshore Jack-up ($ Million) Commentary % EBITDA margin % EBITDA margin EBITDA over $2 billion in full year, +36% 48% 49% 64% 69% with industry leading margin of 50% 768 927 724 510 › Onshore:
Slide 14: Guidance Raised Twice in 2024 and Delivered
ADNOC Classification: Public GUIDANCE RAISED TWICE IN 2024 AND DELIVERED 2024 UPDATED GUIDANCE EXCEEDED (US$ Millions) Updated FY 2024 guidance Actuals Oct 2024 FY2024 Revenue 3,800 – 3,900 4,034 Onshore Revenue 1,700 –1,800 1,893 Offshore Jack-up Revenue 1,000 – 1,100 1,116 Offshore Island Re
Slide 15: Proposals on Dividend
ADNOC Classification: Public PROPOSALS ON DIVIDEND 2024 DPS +10% VS 2023, IN LINE WITH THE 2024-28 PROGRESSIVE DIVIDEND POLICY FINAL DIVIDEND 2024 The Board of Directors recommends a final cash dividend payment of $394 million for 2024 (9.05 fils per share), subject to shareholder approval at the up
Slide 16: Full-Year 2025 and Medium-Term Guidance
ADNOC Classification: Public FULL-YEAR 2025 AND MEDIUM-TERM GUIDANCE REAFFIRMING GROWTH (USD, Billion) FY2025 Guidance Medium-Term Guidance Revenue 4.60 – 4.80 • FY 2026 Revenue expected at ~$5 billion Onshore Revenue 1.95 – 2.10 • Around 50% conventional EBITDA margin Offshore Revenue (Jack-up & Is
Slide 17: 5. Closing Remarks
ADNOC Classification: Public 5. CLOSING REMARKS ADNOC DRILLING 17
Slide 18: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Record revenue, EBITDA New dividend policy and Growth momentum Delivering on our ESG and net income MSCI indexes inclusion continues through Enersol agenda by pursuing and Turnwell ambitious goals Paving the way for further growth 18
Slide 19: Appendix
ADNOC Classification: Public APPENDIX ADNOC DRILLING 19
Slide 20: Quarterly Progress
ADNOC Classification: Public QUARTERLY PROGRESS DELIVERING ON GROWTH ADNOC Production Unconventional Increasing Development Capitalize on ADNOC's plans to increase Become a Middle East regional leader in production capacity to 5 million barrels per unconventional development day and 1bcf of unconven
Slide 21: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK & PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • GHG Abatement at 38.7 KtCO2e in 2024 • Economic performance improved with the • TRIR at 0.46 for
Slide 22: Strong Operational Performance
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Segment FY24 Highlights › All 16 hybrid land rigs are operational. Onshore › Successfully installed 4 solar mobile containers on AD-51 in July. Offshore Jack-up › Added two new jack-up rigs to rig fleet In Dec
Slide 23: Strong Cashflow & Balance Sheet
ADNOC Classification: Public STRONG CASHFLOW & BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER RIG FLEET GROWTH Net Cash from Operating Activities ($ Million) Commentary Cash from Operating Activities 400 67 1,654 (39) › Cash from operating activities stood at $1,654 million in (12
Slide 24: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICIPATED INVESTMENT RAMP-UP CapEx1 ($ Million) Commentary % revenue CapEx › 4Q24 CapEx including prepayments and accruals, 58% 32% 44% 22% amounted to $383 million for 4Q24. 1,333 › Pre-payments in the period were mostl
Slide 25: Ample Financial Headroom
ADNOC Classification: Public AMPLE FINANCIAL HEADROOM FLEXIBILITY FOR GROWTH AND CAPITAL ALLOCATION Financial Headroom ($ Billion), indicative figures for illustrative purposes only ~ 4.5 ~ 2.5 ~ 2.2 ~ (2.0) ~ 0.6 FY25 EBITDA Guidance Mid-point Net Debt Potential FY24 Net Debt Financial Leverage Hea
Slide 26: Financial Summary
ADNOC Classification: Public FINANCIAL SUMMARY (USD, Million) 4Q24 4Q23 YoY 3Q24 QoQ FY24 FY23 YoY Revenue 1,187 841 41% 1,026 16% 4,034 3,057 32% Opex (594) (417) 42% (518) 15% (2,027) (1,574) 29% Share of profit of joint venture 3 - NM 2 50% 8 - NM EBITDA 596 424 41% 510 17% 2,015 1,483 36% Deprec
Slide 27: Segmental Results
ADNOC Classification: Public SEGMENTAL RESULTS (USD, Million) 4Q24 4Q23 YoY 3Q24 QoQ FY24 FY23 YoY Revenue 1,187 841 41% 1,026 16% 4,034 3,057 32% Onshore 554 416 33% 487 14% 1893 1,495 27% Offshore Jack-up 264 225 17% 290 -9% 1,116 800 40% Offshore Island 56 52 8% 52 8% 212 209 1% Oilfield Services
Slide 28: Thank You
ADNOC Classification: Public To access further materials on earnings and Enersol, please click here. www.adnocdrilling.ae ir@adnocdrilling.ae THANK YOU ADNOC DRILLING 28
ADNOC Drilling Company PJSC — FY2024 Earnings Presentation on 6ix