Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2020 Earnings Presentation
26 slides from Anton Oilfield Services's earnings presentation, Mar 29, 2021
Slide 1: 2020 Annual Results Update
2020 Annual Results Update 29 March, 2021 1
Slide 2: Agenda
2020 Performance Overview Agenda 2021 Outlook Q&A 2
Slide 3: Disclaimer
Disclaimer ⚫ This presentation has been prepared by Anton Oilfield Services Group (the “Company”) for its corporate communications and general information only and may not be reproduced or redistributed to any person without the explicit permission of the Company. This presentation does not constitu
Slide 4: Performance Overview
Performance Overview Profit attributable to Revenue Free cash flow owners of the Company (RMB MN) (RMB Mn) (RMB Mn) 3,589.5 -14.0% 3,087.7 268.6 309.9 238.8 29.8% -135.7% 2020 2019 2020 2019 2020 2019 2020 (95.8) 4
Slide 5: Performance Highlights
Performance Highlights Advantaged on a globalized markets facing the dual challenges of 01 COVID-19 and low oil prices; revenue declined modestly 02 Combination of geological study and engineering; rollout of precision engineering services 03 Steady growth of oilfield management business; proven res
Slide 6: Industry facing severe challenges under COVID-19 and plunging oil prices
Industry facing severe challenges under COVID-19 and plunging oil prices Global COVID-19 pandemic Plunge in oil prices (10,000 people) (USD/barrel) 10000 80.0 8000 50.0 6000 20.0 4000 2020/1/2 2020/4/2 2020/7/2 2020/10/2 2021/1/2 (10.0) 2000 0 (40.0) 2020/1/1 2020/4/1 2020/7/1 2020/10/1 2021/1/1 累计确
Slide 7: Increased revenue in domestic market, seized opportunity to resume in overseas market
Increased revenue in domestic market, seized opportunity to resume in overseas market; full-year revenue was down slightly Revenue - Domestic Revenue - Iraqi market Revenue - Other overseas markets (RMB Mn) (RMB Mn) (RMB Mn) 8.9% -32.3% -39.6% 1,683.3 1,832.9 1,419.8 961.1 486.4 293.7 2019 2020 2019
Slide 8: Combined geological study with engineering, fully roll-out precision engineering services
Combined geological study with engineering, fully roll-out the precision engineering services Promotion in unconventional reservoir Promotion in overseas oilfield ⚫ Contracted and completed the deepest (5,750 m deep) ⚫ Launched Integrated geo-study for a southern ultra-long horizontal shale gas well
Slide 9: Oilfield management business grew steadily, proved resilience of our business model
Oilfield management business grew steadily, proved resilience of our business model Revenue from production operation service Undiminished OPEX by clients and steady 4.4% growth of oilfield management business 788.5 823.3 despite industry downturn 2019 2020 Majnoon integrated oilfield Oilfield manag
Slide 10: Strong liquidity management to maintain ample liquidity and financial security
Strong liquidity management to maintain ample liquidity and financial security Free cash flow (FCF) Successful repayment of Strategic investors in continued to improve 2020 Notes leasing business (RMB Mn) (USD Mn) 2019 2020 Chengdu Anton Group Xiangtou Group Net cash flow 610.3 805.4 from operations
Slide 11: IT/DT deployment to transform management processes and enable mid-office capabilities
IT/DT deployment to transform management processes and enable mid-office capabilities; improved efficiency Transformed management with information and digital technology to strengthen the Cost reduced, efficiency improved capabilities of the middle office (RMB Mn) Labor cost down RMB 30.7 million Ba
Slide 12: Release of first sustainability (ESG) report and implementation of sustainable development policies
Release of first sustainability (ESG) report and fully implementation of sustainable development policies ⚫ Created the ESG Committee to raise ESG management level Governance Sustainable Development ⚫ Responded to the epidemic and ⚫ Improved efficiency of donated PPE to local communities, Environmen
Slide 13: Agenda
2020 Performance Overview Agenda 2021 Outlook Q&A 13
Slide 14: 2021 Outlook
2021 Outlook 01 Further pursue upgrade and transformation for a brand-new Anton Seize the opportunities among industry recovery, grasp shares across 02 new markets and continuously build core competitive advantages Strengthen the building of core technical constructions, further 03 achieve the asst-
Slide 15: Continuous progress towards the new Anton vision
Continuous progress towards the new Anton vision International Full-round Key milestones in 2020 Markets Service Provider Priorities for 2021 1 2 Precision International Full-round Digital Business Engineering Services Precision Markets services Provider Platform 3 4 Engineering Sustainable Business
Slide 16: Seize the opportunities among industry recovery, grasp shares across new markets
Seize the opportunities among industry recovery, grasp shares across new markets and continuously build core competitive advantages Strong demand for oil and gas ⚫ In 2021, oil companies will continue to increase the development of shale gas, coalbed methane and other unconventional resources Domest
Slide 17: Strengthen the building of core-competitiveness, further achieve asset-light operating
Strengthen the building of core-competitiveness, further achieve the asst-light operating Geological Engineering One Core Technology Independent Development Oilfield Technical Services Two Primary Businesses Oilfield Management Services Technical Cooperation Testing Services Two Secondary Businesses
Slide 18: Shift towards a platform model and engage partners to develop an ecosystem
Shift towards a platform model and engage partners to develop an ecosystem to fully meet client needs Anton Ecologic Platform Chinese oil Oilfield Digital companies Services Solution All-around services Providers Providers Tailor-made accurate services IOCs Introduce in Meet with partners customers’
Slide 19: Reinforce incentive, fully motivate talents, empower in information tools
Reinforce incentive, fully motivate talents, empower in information tools to improve talents’ efficiency Employee IT in Shareholding Business Scheme Support IT empowerment, IT in Amoeba Activate talents, improve Business improve the efficiency Management the efficiency of talents Systems of system E
Slide 20: Fully promote sustainable development, develop low-carbon and digitalization services
Fully promote sustainable development, develop new fields of low-carbon services and digitalization services Match application scenarios in the oil and gas sector with Provide solutions to meet clients’ digital solutions from technology firms low-carbon goals Build an “ecosystem of solutions” to ena
Slide 21: Summary
Summary 2021 begins with effective controlling over COVID-19 and rising oil prices, the recovery of the industry is right ahead of us, and we are ready to fully resume in each market. We stay committed to the core operating targets of cash flow and return on equity to achieve high-quality and ro
Slide 22: Agenda
2020 Performance Overview Agenda 2021 Outlook Q&A 22
Slide 23: Appendices
Appendices 23
Slide 24: Appendix I: Consolidated Income Statement
Appendix I: Consolidated Income Statement As of 31 December (RMB Mn) 2020 2019 Revenue 3,087.7 3,589.5 Cost of sales (2,277.8) (2,308,0) Gross profit 809.8 1,281.5 Other gains 40.3 0.2 Selling expenses (175.5) (193.3) Administrative expenses (199.0) (215.4) Research and development expenses (56.3) (
Slide 25: Appendix II: Balance Sheet
Appendix II: Balance Sheet RMB Mn 31 December, 2020 31 December, 2019 Property, plant and equipment 2.099.4 2,137.9 Prepaid lease payments - - Intangible assets 273.7 260.0 Interest in a joint venture 5.9 5.8 Prepayments and other receivables 66.4 155.7 Other non-current assets - - Deferred income t
Slide 26: Appendix III: Cash Flow Statement
Appendix III: Cash Flow Statement As of December 31 (RMB Mn) 2020 2019 Net cash used in operating activities 805.4 610.3 Net cash used in investing activities (169.9) (101.9) Net cash received/(used) in financing activities (2,159.3) 1,204.1 Net decrease in cash and cash equivalents (1,523.9) 1,712.
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