Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL

Adnoc Drilling Company Pjsc — Q2 2022 Earnings Presentation

26 slides from Adnoc Drilling Company Pjsc's earnings presentation, Aug 9, 2022

  1. Slide 1: Second Quarter 2022 Results Presentation

    ADNOC Classification: Public SECOND QUARTER 2022 RESULTS PRESENTATION AUGUST 9, 2022 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  2. 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 purpos

  3. Slide 3: Agenda & Presenters

    ADNOC Classification: Public AGENDA & PRESENTERS 1 2Q22 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 S

  4. Slide 4: Solid Financial Performance with Fleet Expansion Supporting Growth in Operations

    ADNOC Classification: Public SOLID FINANCIAL PERFORMANCE WITH FLEET EXPANSION SUPPORTING GROWTH IN OPERATIONS Safety & environment Financial Operational 24,346 $580m 8 GJ/Rig energy intensity in 2Q22 vs. New rigs added to the ADNOC EBITDA in 1H at a margin of 46% target of 52,539 GJ/Rig Drilling flee

  5. Slide 5: Strategic Progress

    ADNOC Classification: Public STRATEGIC PROGRESS 5 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  6. Slide 6: Strategic Partner at the Heart of ADNOC Upstream

    ADNOC Classification: Public 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

  7. Slide 7: We Are Executing on Our Strategy

    ADNOC Classification: Public WE ARE EXECUTING ON OUR STRATEGY Our long-term strategy for growth is focused on four areas Capitalize on ADNOC Unconventional and increasing production biogenic Capitalize on ADNOC's plans to Become a Middle East regional leader increase production capacity to 5 in uncon

  8. Slide 8: Operational Highlights

    ADNOC Classification: Public OPERATIONAL HIGHLIGHTS 8 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  9. Slide 9: Rig Fleet Growing, Utilization Strong

    ADNOC Classification: Public RIG FLEET GROWING, UTILIZATION STRONG Key operational highlights Commentary Rigs* Drilling average duration (days) ▪ 6 Onshore H&P FlexRigs handed over since IPO to end Jackup Island Onshore Offshore of 2Q22 105 81 78 95 104 72 ▪ 2 remaining Onshore rigs 10 10 purchased t

  10. Slide 10: Onshore and OFS Drive Performance

    ADNOC Classification: Public ONSHORE AND OFS DRIVE PERFORMANCE Segmental operating highlights Onshore ▪ 97% Rigs Availability for Onshore rig operations at the end of 2Q22 (vs. 95% in 1Q22) ▪ 93% Rig Efficiency for Onshore rig operations at the end of 2Q22 (vs. 92% in 1Q22) ▪ Accelerated NOP to 42 ri

  11. Slide 11: Spotlight: Accelerating Rig Fleet Expansion

    ADNOC Classification: Public SPOTLIGHT: ACCELERATING RIG FLEET EXPANSION Rig Acquisition: Progress Report From a current fleet of 105, ADNOC Drilling plans to expand the fleet to 122 rigs by 2024 and 127 rigs by 2030 Offshore Onshore ▪ 1 jackup added to the fleet in 4Q21 ▪ 1 rig added to the fleet in

  12. Slide 12: Financial Performance

    ADNOC Classification: Public FINANCIAL PERFORMANCE 12 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  13. Slide 13: Financial Highlights

    ADNOC Classification: Public FINANCIAL HIGHLIGHTS Resilient growth with Capex increasing and strong visibility on future cash flows $ millions Revenue EBITDA Net income % growth % EBITDA margin % growth 13% 46% 45% 34% 379 1,270 580 1,123 49% 500 282 11% 45% 19% 204 669 293 300 172 601 2Q21 2Q22 1H21

  14. Slide 14: Healthy Revenue Growth

    ADNOC Classification: Public HEALTHY REVENUE GROWTH Onshore and Oilfield Services segments drive year-on-year growth $ millions Commentary Onshore Offshore Jackup 1H22 revenue increased by 13% y-o-y and % growth % growth 2Q22 revenue grew by 11% y-o-y, driven primarily by strong Onshore and OFS 24% (

  15. Slide 15: Robust EBITDA Generation

    ADNOC Classification: Public ROBUST EBITDA GENERATION EBITDA growth and strong margins supported by increase in revenues from Onshore and OFS segments $ millions Commentary Onshore Offshore Jackup % EBITDA margin % EBITDA margin 1H22 EBITDA increased 16% year-on- year, with a market-leading margin of

  16. Slide 16: Strong Cashflow and Balance Sheet

    ADNOC Classification: Public STRONG CASHFLOW AND BALANCE SHEET Healthy cash position to enable future growth $ millions Commentary Net cash generated from operating activities Net cash from operating activities Net cash from operating activities ended the first half at $818 million, compared to $479

  17. Slide 17: Working Capital Optimized, Capex Ramps Up

    ADNOC Classification: Public WORKING CAPITAL OPTIMIZED, CAPEX RAMPS UP Working capital continues to improve; Capex accelerates in 2022 $ millions Commentary Capex % of revenue Capex 25% 22% Capex for the second quarter increased by $59 million year-on-year as ADNOC Drilling 31% accelerated its rig fl

  18. Slide 18: Guidance

    ADNOC Classification: Public GUIDANCE 18 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  19. Slide 19: Targeting Growth and Competitive Returns

    ADNOC Classification: Public 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 • D

  20. Slide 20: Summary

    ADNOC Classification: Public SUMMARY 20 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  21. Slide 21: A Solid Quarter, Well Positioned for Growth

    ADNOCClassification: ADNOC Classification: Internal Public A SOLID QUARTER, WELL POSITIONED STRONG ANDFOR GROWTHMOMENTUM SUSTAINED Summary of our Q3 and 9M 2021 results Rig fleet Onshore and OFS is capturing Critical role Compelling expansion OFS segments value while supporting returns to program is

  22. Slide 22: Appendix

    ADNOC Classification: Public APPENDIX 22 2Q22 RESULTS PRESENTATION ADNOC DRILLING

  23. Slide 23: Financial Summary 2Q22

    ADNOC Classification: Public FINANCIAL SUMMARY 2Q22 USD millions 2Q22 1Q22 QoQ % 2Q21 YoY % 1H22 1H21 YoY % Revenue 669 601 11% 601 11% 1,270 1,123 13% Direct cost excluding depreciation (302) (265) 14% (252) 20% (567) (497) 14% General & Administrative expenses (G&A) excl. depreciation & impairment

  24. Slide 24: Segmental Results 2Q22

    ADNOC Classification: Public SEGMENTAL RESULTS 2Q22 USD millions 2Q22 1Q22 QoQ % 2Q21 YoY % 1H22 1H21 YoY % Revenue 669 601 11% 601 11% 1,270 1,123 13% Onshore 383 319 20% 289 33% 702 567 24% Offshore Jackup 144 144 0% 156 -8% 288 293 -2% Offshore Island 51 50 2% 69 -26% 101 106 -5% Oilfield Services

  25. Slide 25: We Continue to Pursue Ambitious ESG Goals

    ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS Our ESG framework and 2Q22 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 52.4% 2Q22 vs. a ▪ Z

  26. Slide 26: Thank You

    ADNOCClassification: ADNOC Classification: Internal Public THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae 2Q22 RESULTS PRESENTATION ADNOC DRILLING

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