Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2017 Earnings Presentation
31 slides from Anton Oilfield Services's earnings presentation, Mar 27, 2018
Slide 1: 2017 Annual Results Announcement
2017 Annual Results Announcement 2018.3.27
Slide 2: Disclaimer
Disclaimer • This document is prepared by Anton Oilfield Services Group (“the Company”) only for its corporate communications and general reference, and may not be copied or forwarded to any person without the permission of the Company. This document does not constitute any recommendation or invitat
Slide 3: Agenda
Agenda Review of 2017 Results 1 2018 Outlook 2 Q&A 3 3
Slide 4: Summary of results
Summary of results Operating profit Revenue (RMB'mn) (RMB'mn) 36.2% +230.8% 2,202.7 1,617.7 473.7 143.2 2016 2017 2016 2017 Profit attributable to equity Net profit holders (RMB'mn) (RMB'mn) +275.3% +134.0% 54.5 171.3 -160.5 -97.7 2016 2017 2016 2017 4
Slide 5: Highlights
Highlights 1. Completed refinancing, removed maturity risk, obtained support from financial institutions and solidified fund security 2. Recovered subsidiary- 40% equity interest of Iraq business, and increased profit attributable to equity holders 3. Oil price risen, market recovered, orders on han
Slide 6: Completed refinancing, removed maturity risk, obtained support from financial institutions
Completed refinancing, removed maturity risk, obtained support from financial institutions and solidified fund security Supported by domestic commercial banks, Issuance of USD300mn bond release pressure successfully rolled over ST debt (USD'mn) 300.0 Balance of domestic short-term debt (RMB'mn) exch
Slide 7: Recovered subsidiary - 40% equity interest of Iraq business
Recovered subsidiary- 40% equity interest of Iraq business, and increased profit attributable to equity holders Iraq business Iraq business Anton DMCC Anton DMCC 60% held by Anton 100% held by 40% held by Anton JV 60% held by Anton Consideration: RMB 735 mn Cash part RMB450 mn in several installat
Slide 8: Oil price risen, market recovered, orders on hand fully commenced
Oil price risen, market recovered, orders on hand fully commenced, and revenue increased Benefitting from OPEC reducing production and recover of global economy, oil price has increased as compared with 2016 Full commencing of orders on hand lead to increased revenue (USD/barrel) 70 Price trend
Slide 9: Optimized revenue structure, overseas and non-Big Three revenue increased
Optimized revenue structure, overseas revenue as well as revenue from 'non-Big Three' customers increased in proportion Overseas revenue increased to 64% of total revenue, with Iraq continuing stable growth, and other overseas markets rapidly increase in scale (RMN'mn) Revenue, by geography Iraq 855
Slide 10: Full utilization of existing equipment and personnel, cost reduction and efficiency improvement
Full utilization of existing equipment and personnel, significant cost reduction and efficiency improvement, lead a substantial increase in profits (RMB'mn) 2202.7 1617.7 701.0 726.5 371.7 377.2 337.8 175.5 Revenue Material cost Stuff cost management cost 2016 2017 10
Slide 11: Agenda
Agenda Review of 2017 Results 1 2018 Outlook 2 Q&A 3 11
Slide 12: 2018 strategic focus
2018 strategic focus strategic objective in three recent years: becoming the most competitive cost-reducing and production-increasing integrated technology service company in the global emerging markets of oil and gas development industry Focus on cash flow management and recover a strong operating
Slide 13: Outlook of 2018
Outlook of 2018 Execution of plentiful orders on hand will pick up pace and safeguard the fast growth in 2018 In Iraq, multiple large projects with international oil companies are running smoothly In Belt and Road market, multiple integrated projects with Chinese independent oil companies are under
Slide 14: Execution of plentiful orders on hand will pick up pace
Execution of plentiful orders on hand will pick up pace and safeguard the fast growth in 2018 Kazakhstan: Iraq: General drilling project General drilling project workover project As at 2017-12-31 Oil production and maintenance project Orders on hand： Cementing project RMB 3,508.7 million Erdos, Chin
Slide 15: In Iraq, multiple large projects with international oil companies are running smoothly
In Iraq, multiple large projects with international oil companies are running smoothly Key market opportunities Obtained general drilling project from IOC: with a value of more than ten million USD Multiple projects in bidding process in center and south oilfields, with total value of several hu
Slide 16: In Belt and Road market, multiple integrated projects under preparation
In Belt and Road market, multiple integrated projects with Chinese independent oil companies are under preparation In O&G market of Belt and Road countries, we have the natural gene of cooperating with independent Chinese oil companies Thanks to strong support from national policy financial inst
Slide 17: In Chinese market, natural gas and shale gas boom will recover growth
In Chinese market, thanks to booming in natural gas and shale gas market, we will recover growth Intensity of environmental protection in China continues to increasing, signifying importance of natural gas, and demand for shale gas production increase is high More than 70% of domestic business c
Slide 18: Cash is king, recover strong operating cash flow capability
Cash is king, and we will recover strong capability to generating operating cash flow Focus on cash flow management, ensuring a healthy operating cash flow Cash flow from investing activities Strictly control CapEx and new investment Reasonably utilize idle equipment Cash flow from financing f
Slide 19: Internationalization of talent to help international business growing
We will push forward internationalization of talent to help international business growing Internationalization of management • Increase internationalization level in HQ • Increase ratio of internationalized talents for overseas business Business localization • Increase ratio of local employees over
Slide 20: Outlook for 2018
Outlook for 2018 In 2018, O&G market will be brimming with activity and opportunities, with obvious signs of recovery Based on healthy cash flow and profit , we will get back to fast growth track 20
Slide 21: Agenda
Agenda Review of 2017 Results 1 2018 Outlook 2 Q&A 3 21
Slide 22: Appendix
Appendix 22
Slide 23: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement As at 31 December(RMB million) 2017 2016 Revenue 2,202.7 1,617.7 Cost of Sales (1,373.0) (1,073.8) Gross Profit 829.7 543.9 Other gains, net 9.7 69.0 Selling expenses (152.6) (110.8) Administrative expenses (175.5) (337.8) Research and development expenses (
Slide 24: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million As at 31 December 2017 As at 31 December 2016 Property, plant and equipment 2,331.6 2,272.2 Prepaid lease payments 77.6 46.9 Intangible assets 224.3 173.2 Interest in a joint venture 2.7 3.6 Other non-current assets 304.8 56.7 Deferred income tax assets 63.7 52.
Slide 25: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 31 December（RMB million） 2017 2016 Net cash generated from operating activities 195.6 115.6 Net cash used in investing activities (399.5) (422.1) Net cash generated from financing activities 862.9 337.9 Net increase in cash and cash equivalents 659.0 31.4 Cash a
Slide 26: Appendix 4: Business Cluster Mix
Appendix 4: Business Cluster Mix 2017 Revenue Breakdown 2017 EBITDA Breakdown 2017 EBITDA/EBITDA Margin RMB million 450.0 48.0% 400.0 46.8% 47.0% 30.8% 350.0 45.8% 31.9% 46.0% 400.6 300.0 43.6% 41.1% 250.0 45.0% 200.0 310.7 44.0% 150.0 43.0% 100.0 41.8% 262.9 42.0% 50.0 25.6% 27.0% 0.0 41.0% Drillin
Slide 27: Appendix 5: Cost Analysis
Appendix 5: Cost Analysis 2017 2016 Change 2017 2016 Change Costs / Expense by function % of Revenue % RMB million % Cost of sales 62.3% 66.4% -4.0% 1,373.0 1,073.8 27.9% Selling expenses 6.9% 6.8% 0.1% 152.6 110.8 37.7% Administrative expenses 8.0% 20.9% -12.9% 175.5 337.8 -48.0% R&D expenses 1.2%
Slide 28: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Drilling Technology Cluster Description Integrated Services Management Provides engineering technical services and products during the drilling stage to solve problems encountered in directional drilling, drilling assessment, drilling acceleration, enhanced reservoir
Slide 29: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Constituent Description Business Lines Well Completion Cluster Provides integrated well completion and stimulation services from integrated solutions for well cementing and completion, production well completion, equipment, tools and materials I
Slide 30: Appendix 6: Product Line Summary
Appendix 6: Product Line Summary Business Clusters and Constituent Description Business Lines Oil Production Cluster Provides engineering services and products for oil companies during well completion and production; enables economical recovery based on reservoir geological conditions through produc
Slide 31: Thank You
Thank You 31
Anton Oilfield Services Group — FY2017 Earnings Presentation on 6ix