Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — Q4 2022 Earnings Presentation
23 slides from Arabian Drilling's earnings presentation, Mar 20, 2023
Slide 1: 2022 Q4 & Full Year Earnings Conference Call
2022 Q4 & Full Year Earnings Conference Call 20 March 2023 Driving Value and Delivering Excellence.
Slide 2: Disclaimer
2022 Q4 and Full Year Investor 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 informa
Slide 3: The Presenting Team
2022 Q4 and Full Year Investor Presentation The Presenting Team Ghassan Mirdad Hubert Lafeuille Chief Executive Officer Chief Financial Officer 3
Slide 4: Today's Agenda
2022 Q4 and Full Year Investor Presentation Today’s Agenda 1 FY 2022 Highlights 2 2022 Business Milestones 3 Rig Status & Competitive Landscape 4 Operational Highlights 5 Financial Performance 6 Forward-Looking Guidance 7 Q&A Session 4
Slide 5: FY 2022 Highlights
2022 Q4 and Full Year Investor Presentation FY 2022 Highlights
Slide 6: 2022 At A Glance
2022 Q4 and Full Year Investor Presentation 2022 At A Glance Financials Operational Highlights FY’22 Revenue SAR 2,704M, up +23% Utilization Rate 94% (YE’22) EBITDA of 42% Non-Productive Time 1.51% Net Profit SAR 558M Aramco REI 93% Net Cash from Operations SAR 1,242M Total 178 Rig M
Slide 7: 2022 Business Milestones
2022 Q4 and Full Year Investor Presentation 2022 Business Milestones
Slide 8: 2022 Business Milestones
2022 Q4 and Full Year Investor Presentation 2022 Business Milestones Jan’22 – 5th IKTVA Excellence Award Nov’22 – Company goes Public AD is the only drilling contractor who has been AD successfully completes its IPO, with a 30% float and raising c. SAR 2.7B with oversubscription from 6 1 recognized
Slide 9: Best-in-Class Capital Market Transactions
2022 Q4 and Full Year Investor Presentation Best-in-Class Capital Market Transactions “These awards are evidence of our ability to optimize our capital structure in order to support the current growth. The closing of both our Local Bond and IPO transactions was perfectly timed with the market expans
Slide 10: Rig Status & Competitive Landscape
2022 Q4 and Full Year Investor Presentation Rig Status & Competitive Landscape
Slide 11: 16% Total Market Share confirming Leadership
2022 Q4 and Full Year Investor Presentation 16% Total Market Share confirming Leadership Market Share Land – Dec’22 Contract Awards in Q4’22: • Two land rigs: 3Y contract with Baker Hughes. 1 Others • One land rig: 2Y contract with Baker Hughes. 19% 22% • One offshore rig: 5Y contract with Saudi Ara
Slide 12: Operational Highlights
2022 Q4 and Full Year Investor Presentation Operational Highlights
Slide 13: Topline Secured with Robust Backlog
2022 Q4 and Full Year Investor Presentation Topline Secured with Robust Backlog Backlog Trend (SAR M) Backlog by Segment – YE’22 (%) 9,535 8,864 8,248 47% 53% 2,400 Offshore Land Dec'21 Jul'22 Sep'22 Dec'22 Contract Ending Date by Year Backlog by Customer – YE’22 (SAR M) 4 526 520 Land Offshore 1,58
Slide 14: Consistent Performance with Renewed Effort on QHSE
2022 Q4 and Full Year Investor Presentation Consistent Performance with Renewed Effort on QHSE Yearly Average Rig Efficiency Index (‘REI’) Number of Rig Move & Days Saved (*) Rig Moves Completed Days Saved 92.4% 93.7% 92.9% 305 275 180 186 178 116 (*): Vs. Saudi 2020 2021 2022 2020 2021 2022 Aramco
Slide 15: Financial Performance
2022 Q4 and Full Year Investor Presentation Financial Performance
Slide 16: Strong Financials amid Active Rig Demand...
2022 Q4 and Full Year Investor Presentation Strong Financials amid Active Rig Demand... Revenue (SAR M) EBITDA (SAR M) Commentary Strong Revenues Growth: 10000 100% 2,199 2,704 90% 911 1,144 595 750 • Previously suspended Land rigs going 80% 308 1000 274 back to work during 2022 70% 60% 100 50% • Su
Slide 17: ...in both Land and Offshore Segments
2022 Q4 and Full Year Investor Presentation …in both Land and Offshore Segments Revenue – Land (SAR M) Revenue – Offshore (SAR M) Commentary Land Segment: 553 802 1,646 1,902 1000 • Average day rate in mid USD 30K with a 243 507 153 high single digit increase in latest fixtures 442 100 • Revenue and
Slide 18: Strong CFO Supporting our Capex Needs
2022 Q4 and Full Year Investor Presentation Strong CFO Supporting our Capex Needs Cash Flow, Cash & Cash Eq. Balance (SAR M) Net Working Capital (SAR M) Cash (EoP) 640 412 1,832 20% 450 18% 3,800 18% 40 0 15% 3,400 16% 350 3,000 14% 2,600 300 1,242 12% 2,200 10% 250 1,800 10% 1,400 388 413 200 8% 1,
Slide 19: Sustainable Net Debt & Healthy Leverage
2022 Q4 and Full Year Investor Presentation Sustainable Net Debt & Healthy Leverage Net Debt (SAR M) Leverage Ratios 1.2 1.2 5 2 1.1 1.1 200 1.0 2,017 1,381 0.9 0.8 2,528 0.8 0.7 0.8 0.6 0.7 (640) (412) 0.5 0.6 (1,832) 0.4 0.3 Net Debt 1,382 971 896 0.2 2020 2021 2022 2020 2021 2022 Net Debt / LTM E
Slide 20: Forward-Looking Guidance
2022 Q4 and Full Year Investor Presentation Forward-Looking Guidance
Slide 21: Forward-Looking Guidance
2022 Q4 and Full Year Investor Presentation Forward-Looking Guidance Revenues are expected to be in the range of SAR 3.3 -3.5 billion, supported by the start of contract of the 3 Revenue newly acquired offshore units in the course of 2023 Capital expenditure is expected to be in the range of SAR 1.2
Slide 22: THANK YOU – Q&A
THANK YOU – Q&A 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 w
Slide 23: Glossary
2022 Q4 and Full Year Investor Presentation Glossary • Non-Productive time (NPT) Non-operational time (downtime) due to machinery breakdown, major overhauling, incident etc. • Backlog Future contracted revenue yet to be recognized. • Stacked Rig A rig that has been demobilized and is not generating