Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — H1 2015 Earnings Presentation
24 slides from Anton Oilfield Services's earnings presentation, Aug 26, 2015
Slide 1: 2015 Interim Results
2015 Interim Results 2015/08/26
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 permission of the Company. The presentation is not intended as a
Slide 3: Agenda
Agenda 2015 Interim Results Summary Operating & Financial Review Outlook Q&A 3
Slide 4: 2015 Interim Results Summary
2015 Interim Results Summary Profit Attributable to the Equity Revenue EPS Holders of the Company RMB million RMB million RMB Dollar 1,112.4 -22.6% 861.5 27.4 1H 2015 2015年上半年 0.01 1H 2015 2014年上半年 1H 2014 1H 2014 1H 2015 1H 2014 -0.03 -369.3% -73.8 -366.4% 4
Slide 5: 2015 Interim Results Summary – vs. 2H 2014
2015 Interim Results Summary – vs. 2H 2014 Profit Attributable to the Equity Profit Margin Holders of the Company RMB million % 2H 2014 1H 2015 2H 2014 1H 2015 67.3% -73.8 63.4% -8.6% -225.6 -23.5% Through the Group’s comprehensive cost controls, profit decline was reversed and loss narrowed compa
Slide 6: Business Highlights
Business Highlights 1 Downward pricing pressure increased, revenue declined year on year and profit margin dropped amid rising competition due to oil companies cutting capital expenditure. 2 Extensive market network helped. Domestically, unconventional project orders and overseas project orders incr
Slide 7: Agenda
Agenda 2015 Interim Results Summary Operating & Financial Review Outlook Q&A 7
Slide 8: Decline in Domestic; Stable Growth in Overseas
Decline in Domestic; Stable Growth in Overseas Revenue by Geographic Market Domestic RMB million Northwest: investment slowed in the Tarim Basin and revenue dropped 307.5 Erdos: oil companies extended preparation time 27.6% and progress dragged due to the new environmental law 389.0 45.2% Southwest:
Slide 9: Won Orders Continuously; Business Started Recovering
Won Orders Continuously; Business Started Recovering In 1H 2015, the Group won orders continuously and business recovered. RMB1.28 billion worth of new orders added in 1H2015 Highlights included: Tight oil and gas project Shale gas and CBM project Business outsourcing as part of SOE reform IOC proje
Slide 10: Business line configuration covering entire oil & gas development lifecycle took shape
Business line configuration covering entire oil & gas development lifecycle took shape; oil production module optimized revenue mix Oil production module yoy Revenue by Cluster revenue growth RMB million RMB million 40.5% 450.4 -10.6% 46.7% 136.7 402.8 23.6% 262.6 43.0 -50.7% 129.4 15.0% 25.6% 284.8
Slide 11: Cost Control Showed Initial Results
Cost Control Showed Initial Results Overheads Downsizing and more rigorous performance review and disqualification; overhead caps; faster internal mobility; staff mix optimization; as at 30 June 2015, staff size shrank by 25%; overhead savings of RMB186 million estimated for 2015. Materials Used
Slide 12: Working Capital Management
Working Capital Management 1H 2015 1H 2014 Change Trade receivables turnover days 274 223 51 Inventory turnover days 232 149 83 Trade payables turnover days 200 163 37 Cash flow from operating activities -32.5 -433.6 401.1 (RMB million) In the challenging domestic market environment, the Group inten
Slide 13: Capital Supplementary
Capital Supplementary Cash Flow As at 30 June, cash and cash equivalents amount to RMB 265.1 million, not include the restricted bank deposits RMB 160.4 million due to overseas market increase, term deposits with initial terms of over three months RMB 9.0 million. Hence, the actual capital at end of
Slide 14: Agenda
Agenda 2015 Interim Results Summary Operating & Financial Review Outlook Q&A 14
Slide 15: Market Outlook
Market Outlook International oil prices will remain low and competition fierce Short- Demand for unconventional energy development in China will likely term persist Oil companies’ demand for oil and gas production is showing signs of recovery. Such recovery will likely happen sooner in overseas mark
Slide 16: Business Priorities for 2H 2015
Business Priorities for 2H 2015 1 To aim for bigger market share; capture hotspot opportunities both at home and abroad; achieve full coverage of markets where Chinese companies enjoy comparative advantage; continue to add orders 2 To push for quick execution of jobs; achieve annual revenue target 3
Slide 17: Ample order backlog and quick execution of jobs to realize revenue target
Ample order backlog and quick execution of jobs to realize revenue target RMB million Drilling All drills will commence engineering work Technology Mud and well cementing services will initiate engineering jobs overseas Domestically, waste management service will progress steadily Well Signature san
Slide 18: Strategic Resources Alignment
Strategic Resources Alignment Cost To intensify staff evaluation; build lean and productive workforce; further improve staff mix To further strengthen controls on raw material costs and administrative expenses Capital To intensify efforts to collect trade receivables, reduce liquidity need and maint
Slide 19: Recognizing the challenging outlook, the Group will tighten cost control
RECOGNIZING THE CHALLENGING OUTLOOK, THE GROUP WILL TIGHTEN COST CONTROL AND INCREASE CAPACITY UTILIZATION. WE WILL LEVERAGE COMPARATIVE ADVANTAGES TO SEIZE MARKET SHARES, GROW REVENUE AND BRACE UP FOR FULL RECOVERY.
Slide 20: Agenda
Agenda 2015 Interim Results Summary Operating & Financial Review Outlook Q&A 20
Slide 21: Appendices
ANTON Appendices RAS BUDS Oriental wisdom , Global sharing
Slide 22: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement 6 months ended 30 June (RMB million) 2015 2014 Revenue 861.5 1,112.4 Cost of sales (625.0) (691.2) Gross Profit 236.5 421.2 Other gains, net 13.8 2.9 Selling expenses (72.0) (82.9) Administrative expenses (129.1) (137.7) Research and development expenses (9.
Slide 23: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million As at 30 June 2015 As at 30 June 2014 Property, plant and equipment 2,364.8 2,293.5 Land use rights 60.3 61.0 Intangible assets 404.6 392.4 Investment in joint ventures 4.0 5.0 Other non-current assets 60.4 88.6 Deferred income tax assets 62.2 57.3 Inventories 9
Slide 24: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement For the 6 months ended 30 Jun (RMB million) 2015 2014 Net cash used in operating activities (32.4) (433.6) Net cash used in investing activities (168.7) (229.4) Net cash (used in) / generated from financing activities (296.7) (59.0) Net (used in) / decrease in cash an
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