Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — Q2 2024 Earnings Presentation
23 slides from Arabian Drilling's earnings presentation, August 2024
Slide 1: Q2'24 Earnings Call
Arabian“D Drilling HESS | Q2’24 EARNINGS CALL 0G Aug 2024
Slide 2: Disclaimer
Arabian Drilling | — Q2’24 Earnings Call DISCLAIMER This presentation has been prepared by Arabian Drilling (the “Company” or “AD") based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informatio
Slide 3: The Presenting Team
Arabian Drilling | Q2’24 Earnings Call THE PRESENTING TEAM Cf [An rae We have maintained a resilient financial position as we reach the peak of our Unconventional Land Rigs capex program with material investments accelerating to deploy and We have made significant progress during the first half of t
Slide 4: Agenda
Arabian Drilling Q2'24 Earnings Call AGENDA Q2’24 Highlights Business & Operations Financial Performance . Closing Remarks Q&A Session
Slide 5: Q2'24 Highlights
A, Q2’24 Highlights Arabian Drilling Q2’24 Earnings Call
Slide 6: Strong H1 Delivery
Arabian Drilling | Q2’24 Earnings Call STRONG H1 DELIVERY Operational Highlights Financial Highlights (sar) - (%) vs. H’23 = Utilization Rate 91% = Revenue 1,90G6M, +21% = Rig Efficiency Index (‘REI’) of 94.1% = EBITDA79IM, +20% = Quarterly Non-Productive Time (‘NPT’) 1.61% = Adjusted Net Income 271
Slide 7: Business & Operations
A, Business & Operations Arabian Drilling Q2’24 Earnings Call
Slide 8: Unconventional Rigs: Half-Way Through! Recent Developments
Arabian Drilling | Q2'24 Earnings Call Market Share Land - EoP Q2’24 UNCONVENTIONAL RIGS “ : Half-Way Through! q \ RECENT DEVELOPMENTS Mderes y “Oring Offshore Activity Status = Suspended Offshore Rigs going through planned maintenance and actively marketed for their next assignment = Jleased Offsho
Slide 9: Stable Backlog
Arabian Drilling | Q2’24 Earnings Call STABLE BACKLOG Backlog (SAR Ms) peed 1,908 1,793 Q2'23 Q3'23 Q4'23 Q24 Q2'24 Rigs Rolling Off Contracts mLand = Offshore 22 1 aio =f ow 2024 2025 2026 2027 2028 2029 2030+ Backlog by Customer — EoP Q2’24 (SAR M and %) KIO 0, Baker Ss : 352,3% 329, 2% Hughes 690
Slide 10: Driving Operational Efficiencies
Arabian Drilling | Q2’24 Earnings Call 60 DRIVING OPERATIONAL so LJ . . 40 Efficiencies 20 20 10 Aramco Rig Efficiency Index (‘REI’) 0 92.4% 94.2% 94,0% 94.1% a ~ ~ % of Rigs scoring | in High & Superior 83% 87% 91% 92% Performance Average REI (36- months Rolling) 60 Q3'23 Q4'23 Q24 Q2'24 (*) 50 Non
Slide 11: Financial Performance
A, Financial Performance Arabian Drilling Q2’24 Earnings Call
Slide 12: Q2'24 Financial Highlights
GS Arabian Drilling | — Q2’24 Earnings Call Q2’24 FINANCIAL HIGHLIGHTS (SAR M) Qe sf i 939 38 613 REVENUE EBITDA @41% (-3% 909) (5% QoQ) CAPEX 8 oN a ise : (299) 10.1% 2,419 FREE CASH FLOW (") ROE (“*) tis Leverage) PR (‘): Fee Cash Flow calculated as Cash Flow from Operations less CAPEX (**) ROE ca
Slide 13: ▪ ▪ ▪ 1000 1000 1000 ▪ 00 600 600 500 500 500 400
▪ ▪ ▪ 1000 1000 1000 900 900 900 800 800 800 700 ▪ 700 700 600 600 600 500 500 500 400 400 400 300 300 300 200 200 200 100 100 100 0 0 0 ▪ 2,000 2000 2000 2000 ▪ 1800 1800 1,800 1600 1600 1,600 1500 1400 1400 1,400 1200 1200 1,200 1,000 1000 1000 1000 ▪ 800 800 800 600 600 600 500 400 400 400 200 20
Slide 14: ▪ 0.9 0.9 0.8 0.8 ▪ 0.7 0.7 600 0.6 0.6 500 500 0.5
900 1 ▪ 900 1 0.9 800 0.9 800 0.8 700 0.8 700 ▪ 0.7 600 0.7 600 0.6 0.6 500 500 0.5 0.5 400 400 0.4 0.4 300 300 0.3 0.3 200 0.2 200 0.2 100 0.1 100 0.1 0 0 0 0 ▪ 0.18 0.14 1000 1000 0.16 0.12 0.14 800 800 0.1 0.12 0.08 600 600 0.1 400 0.06 400 0.08 0.06 ▪ 0.04 0.04 200 200 0.02 0.02 0 0 0 0
Slide 15: Cash Management
Arabian Drilling | — Q2’24 Earnings Call CASH MANAGEMENT Near Capex Peak Cash Flow Bridge (SAR M) Commentary 613 5 Key Drivers = Capex: 70% of Capex spent related to Unconventional Rigs. Others include OFSAT rig move equipment, one Land Rig upgrade and Facilities / ERP upgrade. = Dividends: payout f
Slide 16: Prudent Capital Management
Arabian Drilling | — Q2’24 Earnings Call PRUDENT CAPITAL Management Net Debt (SAR M) and Leverage Ratio Re 8p YE'23 HI'24 mmmCash mm@mBorrowing mmmLease mam™liNetDebt —=Net Debt/EBITDA Commentary Total Gross Debt of SAR 3 billion = SAR 2 billion Sukuk and 2 Bank Loans (SAR 500m each) = Additional av
Slide 17: Guidance Confirmed
GS Arabian Drilling | — Q2’24 Earnings Call GUIDANCE CONFIRMED Resilient Business Model R sO) FY’24 Revenue, in the range of SAR 3.6 evenue “ll to SAR 3.9 billion, reflecting YoY Growth di) FY’24 Capex remains unchanged, in the CAPEX (OSE ange of SAR 2.1 to SAR 2.4 billion _ H1’24 Dividend Payout of
Slide 18: Closing Remarks
A, Closing Remarks Arabian Drilling Q2’24 Earnings Call
Slide 19: Rebalancing Growth Trajectory
REBALANCING Growth Trajectory ]. Financial strength remains secure 2. Mitigating rig suspensions 3. Expanding Unconventional program 4. Prudent capital management 5. Guidance confirmed Arabian Drilling Q2’24 Earnings Call
Slide 20: Arabdrill.com
This document and the information contained in it are given in confidence and are only to be used by the disclosing party and the receiving party to explore business opportunities relating to Arabian Drilling; they may not be disclosed to third parties or used for any other purpose without the expre
Slide 21: Appendix
A, APPENDIX Arabian Drilling Q2’24 Earnings Call
Slide 22: Net Income & EBITDA Reconciliation
bY NET INCOME & EBITDA RECONCILIATION In SAR Million Qi'24 Q2'24 H1'24 Net Income 146 20 166 ADD BACK: Asset impairment charge 105 105 Adjusted Net Income 146 125 271 ADD BACK: Finance costs - net 46 53 99 Zakat and Income Tax 22 2 24 Depreciation 191 206 397 EBITDA 405 386 791 EBITDA Margin 41.9% 4
Slide 23: Glossary
Arabian Drilling Co. | Q224 Earnings Call GLOSSARY Glossary Description Active Rig Month Annual number of months where rigs generate revenue Backlog Future contracted revenue yet to be recognized. Book-to-Bill Ratio Calculated as Backlog divided by LTM Revenue c. Circa / approximately CFF Net cash g