Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — FY2024 Earnings Presentation
22 slides from Arabian Drilling's earnings presentation, 2025
Slide 1: Arabian Drilling
nd ia Drilling Arab
Slide 2: Disclaimer
FY 2024 Earnings Presentation 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 informational purpose
Slide 3: In today’s presentation
FY 2024 Earnings Presentation In today’s presentation Ghassan Mirdad Chief Executive Officer With over 25 years of experience in the oil & gas sector, Ghassan brings expertise in drilling, M&A, and operations. A Sloan Fellow, he holds a master’s from London Business School and a chemical engineering
Slide 4: 2024 Achievements
FY 2024 Earnings Presentation 2024 Achievements Record Revenue and EBITDA FY 2024 revenue of SAR 3.6 billion and EBITDA of SAR 1.5 billion mark the highest recorded in AD's history since inception. Winner of Aramco Excellence Award Arabian Drilling won an Excellence Award for Best in Saudization at
Slide 5: Revenue in line with guidance, strong EBITDA margin maintained
FY 2024 Earnings Presentation Revenue in line with guidance, strong EBITDA margin maintained FY 2024 financial highlights (SAR, versus FY 2023) rc] 3 2 = =x = i=} = 7 : 3 2 2 & o ° a 8 8 5 g re g @ ro FA 3 FE # . e REVENUE = EBITDA fa EBITDA Margin Z (+4% YoY) d (+2% YoY) My (-10 pp YoY) aS 7 = Ko)
Slide 6: Showcasing excellence: solid operational highlights
FY 2024 Earnings Presentation Showcasing excellence: solid operational highlights Operational Highlights ge de 13 83.1% UNCONVENTIONAL UTILIZATION RATE RIGS DEPLOYED O> 1.67% Non-Productive Time (NPT) a8 — 0.59 Total Recordable Incident Frq. (TRIF) eae ©o—oo2ou OO 60-6 130 Total Days Saved in Rig Mo
Slide 7: Contract & Backlog Update
A Contract & Backlog Update Arabian Drilling FY & Q4'24 Earnings Call
Slide 8: 11,728 10,278 8,864 ▪ 45.9% 56.9% ▪ 53.4% 3,261 2,400 54.1% 37.8% 43.1% ▪
11,728 10,278 8,864 ▪ 45.9% 56.9% ▪ 53.4% 3,261 2,400 54.1% 37.8% 43.1% ▪ 51.6% 46.6% 62.2% 48.4% ▪ ▪ ▪ ▪ ▪ ▪
Slide 9: All contracts expiring in 2024 were successfully renewed
FY 2024 Earnings Presentation All contracts expiring in 2024 were successfully renewed Land Contracts expiring in 2025 Offshore Contracts expiring in 2025 5-year Rig Contract Renewal Rig contract renewal 24 1 Offshore and 2 land rigs contract extensions, as previously announced in Q4 2024 1 7 a 2026
Slide 10: Financial Performance
A, Financial Performance Arabian Drilling FY 2024 Earnings Call
Slide 11: Revenue, EBITDA and adj. gross profit
FY 2024 Earnings Presentation Revenue, EBITDA and adj. r---* Offshore Segment Revenue and Adj. GP % i 1 i gross profit — A solid trend i a, ' e i Total Revenue and EBITDA % ' are aT 7 (GB, i 44.7% AVE} 42.3% 42.7% 47% 1,467 1 ae _ ~ | a = - a of a i Hm ' 2020 2021 Le 2023 2024 2,532 —e EBITDA % . 21
Slide 12: ▪ ▪ 3,800 3,800 ▪ 3,500 3,500 3,500 3,200 3,200 2,900 2,900 3,000 2,600
▪ ▪ 3,800 3,800 ▪ 3,500 3,500 3,500 3,200 3,200 2,900 2,900 3,000 2,600 2,600 2,300 2,300 2,500 2,000 2,000 ▪ 2,000 1,700 1,700 1,400 1,400 1,500 1,100 1,100 1,000 800 800 500 500 500 200 200 0 -100 -100 ▪ 3,800 3,800 3,800 ▪ 3,500 3,500 3,200 3,300 3,200 2,900 2,900 2,800 2,600 2,600 2,300 2,300 2,
Slide 13: Net Income Drop Explained
FY 2024 Earnings Presentation Net Income Drop Explained = Revenue contribution of unconventional rigs: 1 rigs started in 2024 (4 in Q2, 4 in Q3 and 3 in Q4). Remaining 2 started in Q1’25. All 13 new unconventional rigs are currently operational and are expected to add c. 800M to total revenues While
Slide 14: End of Current Capex Cycle
FY 2024 Earnings Presentation End of Current Capex Cycle In the last few years, we had witnessed intense capex cycles with spending of around 1.8Bn annually. This represents c. 3x the capex we would normally spend ona steady-state business without any capex growth. Going back to more normalized cape
Slide 15: Maintaining financial power in a high CAPEX cycle
FY 2024 Earnings Presentation Maintaining financial power in a high CAPEX cycle 3000 1.67x 1.62x = Gross Debt: 2,955M (YE'24), made of a Sukuk (2Bn) . 1.49x 1.60x and 2 bank loans (SOOM each), plus accrued interests, eo us 140x net of 100M of loan repayment in 2024. No new debt E 7 : = 2000 on drawn
Slide 16: Strategic Priorities and Guidance
A, 2025 Strategic Priorities and Guidance Arabian Drilling FY 2024 Earnings Call
Slide 17: Strategic Priorities for 2025
FY 2024 Earnings Presentation Strategic Priorities for 2025 Xe i Commit to Significant Enhancements in HSE Increase Fleet Utilization Pe VOCE OCCCH! ENS SS wa Support KSA’s Energy Transition Expand Internationally
Slide 18: Revenue Guidance
FY 2024 Earnings Presentation Revenue Guidance In response to the dynamic conditions in the oil and gas industry, the management team has revised the financial guidance strategy to better align with the current market landscape. Here, we outline the changes we've made, the reasons behind these adjus
Slide 19: Confidentiality notice
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 20: Appendix
A, Appendix Arabian Drilling FY 2024 Earnings Call
Slide 21: Net Income & EBITDA Reconciliation
FY 2024 Earnings Presentation Net Income & EBITDA Reconciliation In SAR Million Qi'24 Q2'24 Q3'24 Q4'24 FY’24 Revenue 967 939 863 850 3,619 Net Income 146 20 85 70 321 ADD BACK: Asset impairment charge 105 105 Adjusted Net Income 146 125 85 70 426 ADD BACK: Finance costs - net 46 53 53 55 208 Zakat
Slide 22: Glossary
FY 2024 Earnings Presentation 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 EBITDA EoP GHG Free Cash Flow HSE IFRS JUs LTIF Rate Calculated as Backlog divided by LTM Revenu