Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2016 Earnings Presentation
27 slides from Anton Oilfield Services's earnings presentation, Mar 28, 2017
Slide 1: 2016 Annual Results
2016 Annual Results 2017/03/28
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 the permission of the Company. The presentation is not intended
Slide 3: Agenda
Agenda 1 2016 Annual Results Summary 2 2017 Outlook 3 Q&A 3
Slide 4: 2016 Annual Results Summary
2016 Annual Results Summary Revenue Operating Profit (RMB million) (RMB million) 1,833.0 -11.7% 1,617.7 +54.8% 143.2 92.5 2015 2016 2015 2016 Profit Attributable to Equity Net Profit Holders of the Company (RMB million) (RMB million) 2015 2016 2015 2016 -97.7 -195.2 -160.5 -194.7 +49.9% +17.6% 4
Slide 5: Business Summary
Business Summary Oil price was at its lowest in 12 years, market was weak, and revenue decreased Market distribution was optimized, with overseas revenue surpassing domestic revenue, and revenue from non-3 majors* clients increasing proportion dramatically Significant results were achieved from redu
Slide 6: Weak market and decreasing revenue
Weak market and decreasing revenue (RMB million) Oil price between 2015 and 2016 Revenue $/bbl (RMB million) 80 70 2015 Avg price 60 1,617.7 50 1,833.0 2016 Avg price 40 30 2015 2016 20 1 January 2015 1 July 2015 1 January 2016 1 July 2016 1 January 2017 Brent resources: Bloomberg In first half of
Slide 7: Major breakthrough cooperating with IOCs, with high growth in new markets
Achieved major breakthrough cooperating with IOCs, with high growth in new markets Existing markets: major breakthrough in working with international oil companies In Iraq, major breakthrough cooperating with international oil companies was achieved, winning +14% several large-scale long-term proj
Slide 8: Overseas business grew and larger proportion from non-3 majors clients
Overseas business grew and arger proportion from non-3 majors clients Continued overseas growth against weak market (RMB Million) 1,050 866.2 900 760.9 692.6 750 600 53.5% 33.4% 41.5% 450 300 150 0 2014 2015 2016 Oversea Revenue Overseas Revenue % "3 Majors" IOCs Large increase of proportion from SO
Slide 9: Adjusted revenue distribution with growth in stimulation, cost reduction and integration-oriented businesses
Adjusted revenue distribution with growth in stimulation, cost reduction and integration-oriented businesses 2015 2016 Long-term contract model 21.9% 26.6 27.0 The Group obtained multiple long-term service 35.6% % % contracts from the same client in Iraq, providing mainly production services. This
Slide 10: International technological cooperation and integrated services coalition in China
Commenced international technological cooperation and formed the most competitive integrated services coalition in China HBP: supplementing EPC FLOTEK: ground services capability supplementing oilfield chemical stimulation Further increase in technology capability global resources allocation capabil
Slide 11: Optimized human resources with large cost reduction
Optimized human resources with large cost reduction Lower cost from human resources optimization Headcount decreased 2014 -42.8% about 42.8% from 2015 4000+ 2015 3500+ -21.0% HR cost decreased about 21.0% from 2015 2016 2000+ Large cost reduction (RMB million) -17.4% Raw material cost 1000 decreased
Slide 12: Optimized capital structure, broadened financing channels, and eased financial pressure
Optimized capital structure, broadened financing channels, and eased financial pressure Deepened cooperation with commercial banks Signed strategic cooperation agreement of RMB2 billion with SPD Bank Consolidated facility cooperation with multiple banks Introduced HBP as strategic partner in Ira
Slide 13: Agenda
Agenda 1 2016 Annual Results Summary 2 2017 Outlook 3 Q&A 13
Slide 14: 2017 Outlook
2017 Outlook Oil price will gradually recover with improving market sentiment and recovering industry Expecting the beginning year of high growth, with full-scale commencement of ample orders on hand, the Group will come back strong in 2017 Cooperation with IOCs will further scale up, and new market
Slide 15: With ample orders on hand, project execution will pick up
With ample orders on hand, project execution will pick up 3,158 As at 31 December, 2016, million orders on hand are at historical high of RMB3,158 million Double- In Q1, order execution digit experienced double- growth digit growth compared with the same period in 2016 3 billion As at present, about
Slide 16: Iraq will continue its rapid growth
Iraq will continue its rapid growth Full commencement of about RMB2.4 billion of orders on hand Production operation and maintenance project (RMB460 million), the client sped up construction process and will complete the contract early Workover and completion integrated project (RMB960 million),
Slide 17: Continue the follow-up strategy and enter new markets
Continue the “follow-up” strategy and enter new markets with limitless potentials Overall Planning Continue the ”follow-up” strategy and enter new markets, and aim to enter and develop 1~2 overseas markets per year Existed markets—Steady Growth of Ethiopia Actively seek for opportunities and bring
Slide 18: Seize unconventional market opportunities in China
Seize “unconventional” market opportunities in China Domestic unconventional market opportunities Huge room of growth for shale gas The Thirteenth Five-Year Plan aims to achieve 30 billion cubic meter of shale gas production by 2020 Shale gas projects Ultra-long horizontal well integrated services w
Slide 19: Service model optimization will help improve revenue distribution
Service model optimization will help improve revenue distribution Higher proportion of stimulation-oriented services • Stimulation-oriented services will have higher proportion of revenue Greater revenue from reservoir geological services • The Group will strengthen the reservoir geological services
Slide 20: Strengthen reservoir technology capabilities, and build asset-light integrated services coalitions
Strengthen reservoir technology capabilities, and build asset-light integrated services coalitions Increase staff matching with business recovery, Strengthen reservoir technology capabilities • Increase staff in the overseas markers especially in the emerging markers, Introduce reservoir geological
Slide 21: Emphasize the importance of cash, and take measures to ensure healthy cash flow
Emphasize the importance of cash, and take multiple measures to ensure healthy cash flow Strengthen cash management and maintain healthy cash flow! Financing cash flow Increase net inflow by deepening cooperation with financial institutions Investment cash flow Reduce outflow by continuing the a
Slide 22: Return to the track of high-speed growth
Return to the track of high-speed growth We believe the Group has returned to its track of high-speed growth in 2017! We will continue the asset-light strategy, and maintain production capacity in the next few years, and achieve our RMB5 billion revenue target! 5,000.0 2016 2017E (人民币 百万元 22
Slide 23: Agenda
Agenda 1 2016 Annual Results Summary 2 2017 Outlook 3 Q&A 23
Slide 24: Appendices
» ‘Wl £58 ih ik ”y Appendices 24
Slide 25: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement As at 31 December(RMB million) 2016 2015 Revenue 1,617.7 1,833.0 Cost of Sales (1,073.8) (1,250.3) Gross Profit 543.9 582.7 Other gains, net 69.0 20.7 Selling expenses (110.8) (137.5) Administrative expenses (337.8) (339.0) Research and development expenses
Slide 26: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million As at 31 December 2016 As at 31 December 2015 Property, plant and equipment 2,272.2 2,355.5 Land use rights 48.0 59.9 Intangible assets 415.2 379.5 Investment in a jointly controlled entity 3.6 4.0 Other non-current assets 62.0 67.3 Deferred income tax assets 52
Slide 27: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 31 December（RMB million） 2016 2015 Net cash generated from operating (66.0) 157.4 activities Net cash generated from investing (422.1) (133.3) activities Net cash generated from financing 519.6 (329.5) activities Net increase (decrease) in cash and cash 31.6 (30
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