Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q3 2022 Earnings Presentation
25 slides from Adnoc Drilling Company Pjsc's earnings presentation, Nov 14, 2022
Slide 1: Third Quarter and Nine-Months 2022 Results Presentation
THIRD QUARTER AND NINE-MONTHS 2022 RESULTS PRESENTATION 14 NOVEMBER 2022 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 2: Disclaimer
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 purposes. It should not be constru
Slide 3: Agenda & Presenters
AGENDA & PRESENTERS 1 3Q22 Highlights Abdulrahman Abdullah Al Seiari 2 Strategic Progress Chief Executive Officer 3 Operational Highlights 4 Financial Performance Esa Ikaheimonen Chief Financial Officer 5 Guidance 6 Summary Emri Zeineldin Senior Vice President, Oilfield Services 7 Appendix 3 3Q22 RE
Slide 4: Strong Financial Performance with Accelerating Rig Fleet Expansion
STRONG FINANCIAL PERFORMANCE WITH ACCELERATING RIG FLEET EXPANSION Safety & environment Financial Operational 36,170 17% 9 GJ/Rig energy intensity in 3Q22 vs. YoY revenue increase in 3Q22 to New rigs added to the ADNOC target of 52,539 GJ/Rig $670 million Drilling fleet in 9M22 384 31% 96% ktCO2eq G
Slide 5: Strategic Progress
STRATEGIC PROGRESS 5 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 6: Strategic Partner at the Heart of ADNOC Upstream
STRATEGIC PARTNER AT THE HEART OF ADNOC UPSTREAM Our value creation profile High return, limited risk proposition • Integral position to ADNOC operations driving bespoke contractual position • Attractive returns, high visibility and strong downside protection • Compelling IRRs generated over a long
Slide 7: We Are Executing on Our Strategy
WE ARE EXECUTING ON OUR STRATEGY Our long-term strategy for growth is focused on four areas Capitalize on ADNOC Unconventional Increasing Production Development Capitalize on ADNOC's plans to Become a Middle East regional leader increase production capacity to 5 in unconventional development. millio
Slide 8: Operational Highlights
OPERATIONAL HIGHLIGHTS 8 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 9: Growing Fleet Is Drilling More Wells
GROWING FLEET IS DRILLING MORE WELLS Key operational highlights Commentary ▪ 6 Onshore H&P FlexRigs Rigs* Drilling average duration (days) integrated into operations in the first nine months of 2022 Onshore Jackup Island Onshore Offshore ▪ 441 wells drilled in 9M22 105 108 78 compared to 396 wells d
Slide 10: Onshore and OFS Drive Performance
ONSHORE AND OFS DRIVE PERFORMANCE Segmental operating highlights Onshore ▪ 95% Rig Availability for Onshore operations in 9M22 (vs. 94% in 9M21) ▪ 92% Rig Efficiency for Onshore operations in 9M22 (vs. 94% in 9M21) ▪ Land rig AD-22 ran smart completion within 7 days in the longest horizontal section
Slide 11: We Continue to Pursue Ambitious ESG Goals
WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS Our ESG framework and 3Q22 performance highlights Climate, emissions and energy Economic and social contribution Health, safety and security ▪ Support ADNOC’s target to decrease GHG ▪ In-country value (ICV) at 90.4% ▪ Zero recordable incidents in Offshore an
Slide 12: Financial Performance
FINANCIAL PERFORMANCE 12 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS Strong 3Q and 9M performance with healthy revenue growth and industry-leading EBITDA margins $ millions Revenue EBITDA Net income % growth % EBITDA margin % growth 45% 15% 46% 24% 879 568 785 1,940 50% 460 17% 1,694 45% 6% 285 299 178 189 571 670 3Q21 3Q22 9M21 9M22 3Q21 3Q22 9M
Slide 14: Segmental Revenue
SEGMENTAL REVENUE Onshore and OFS powering top-line growth for 3Q and 9M periods $ millions Commentary Onshore Offshore Jackup Onshore and Oilfield Services drove overall % growth % growth 9M22 revenues to $1.94 billion, up 15% year-on-year 27% (4)% 1,074 450 Onshore: 3Q22 revenue 431 847 increased
Slide 15: EBITDA Generation
EBITDA GENERATION Onshore leads EBITDA growth as lower revenue impacts Offshore performance $ millions Commentary Onshore Offshore Jackup % EBITDA margin % EBITDA margin 9M22 EBITDA up 12% at an industry- leading margin of 45%. 3Q22 EBITDA 44% 60% 51% increased by 5% year-on-year 43% 48% 517 272 64%
Slide 16: Strong Cashflow and Balance Sheet
STRONG CASHFLOW AND BALANCE SHEET Healthy cash position to enable growth $ millions Net cash generated from operating activities Commentary Net cash from operating activities 3Q22 cash generated from operating activity was $317 million, driven by growth in OFS and Onshore. The Company continues to r
Slide 17: Working Capital Optimized, Capex Ramps Up
WORKING CAPITAL OPTIMIZED, CAPEX RAMPS UP Working capital improves with aggressive targets set; Capex is accelerating into year-end $ millions CapEx Commentary % of revenue 26% CapEx 27% 508 During 9M22, increased CapEx of $508 454 million supported the rig fleet expansion. 33% 30% Accelerated rig f
Slide 18: Guidance
GUIDANCE 18 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 19: Targeting Growth and Competitive Returns
TARGETING GROWTH AND COMPETITIVE RETURNS Forward-looking guidance confirmed and unchanged Performance Growth Financial Revenue Rig Requirement Dividend Policy CAGR in low teens for medium term vs 2021 122 rigs by end of 2024 (56 focused on IDS) 5-for-5 dividend growth • Drilling revenues high single
Slide 20: Summary
SUMMARY 20 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 21: A Solid Quarter, Well Positioned for Growth
A SOLID QUARTER, WELL STRONG AND SUSTAINED MOMENTUM POSITIONED FOR GROWTH Robust Onshore and Over $13 billion Key enabler of Compelling financials OFS segments in contract ADNOC’s returns to supported by enabling backlog ambitious shareholders, industry- powerful top- achieved since production deliv
Slide 22: Appendix
APPENDIX 22 3Q22 RESULTS PRESENTATION ADNOC DRILLING
Slide 23: Financial Summary 3Q22 & 9M22
FINANCIAL SUMMARY 3Q22 & 9M22 3Q22 2Q22 QoQ % 3Q21 YoY % USD Million 9M22 9M21 YoY % 670 669 0% 571 17% Revenue 1,940 1,694 15% -371 -369 1% -286 30% Opex1 -1,061 -909 17% 299 300 0% 285 5% EBITDA2 879 785 12% 189 205 -8% 178 6% Net Profit 568 460 24% 45% 45% 50% EBITDA Margin 45% 46% 28% 31% 31% Ne
Slide 24: Segmental Results 3Q22 & 9M22
SEGMENTAL RESULTS 3Q22 & 9M22 USD Millions 3Q22 2Q22 QoQ % 3Q21 YoY % 9M22 9M21 YoY % Revenue 670 669 0% 571 17% 1,940 1,694 15% Onshore 372 383 -3% 279 33% 1,074 847 27% Offshore Jackup 143 144 -1% 157 -9% 431 450 -4% Offshore Island 52 51 2% 61 -15% 153 166 -8% Oilfield Services (OFS) 103 91 13% 7
Slide 25: Thank You
THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae 3Q22 RESULTS PRESENTATION ADNOC DRILLING
ADNOC Drilling Company PJSC — Q3 2022 Earnings Presentation on 6ix