Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — H1 2017 Earnings Presentation
24 slides from Anton Oilfield Services's earnings presentation, Aug 28, 2017
Slide 1: 2017 Interim Results Announcement
2017 Interim Results Announcement 2017.8.28
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 intende
Slide 3: Agenda
Agenda 2017 Interim Results Summary 2H 2017 Outlook & Three-year Strategy Update Q&A 3
Slide 4: 2017 Interim Results Summary
2017 Interim Results Summary (RMB million) Profit Attributable to Revenue Operating Profit Owners of the Company +29.9% 875.4 192.2 673.7 +329.0% 44.8 +118.8% 12.2 1H 2016 1H 2017 1H 2016 1H 2017 1H 2016 1H 2017 -65.0 4
Slide 5: Business Highlights
Business Highlights 1 Market and industry recovery; Major customers’ Capex increased 2 All projects fully operated; Order execution speeded-up; Utilization rate improved; Revenue increased 3 Optimized business structure. Improved GP Margin. Results turned-around 4 Working capital turnover was improv
Slide 6: Major Customers' Capex Increased
Market & Industry Recovery; Major Customers’ Capex Increased BRENT Oil Price Major Customers’ Capex RMB million USD/Barrel +15.1% 54,143 47,030 2016.4 2016.7 2016.10 2017.1 2017.4 2017.7 1H 2016 1H 2017 6
Slide 7: Utilization Rate Improved; Revenue Increased
Project Fully Operated; Order Execution Speeded-up; Utilization Rate Improved; Revenue Increased Revenue from Large Revenue Equipment Product Lines (RMB million) +1.6% +29.9% +46.2% +115.4% 861.5 875.4 673.7 232.0 158.7 107.7 Large Equipment Product Lines include drilling services, fracturing and pu
Slide 8: Optimized Business Structure; Results Turned-around
Optimized Business Structure; Improved GP Margin; Results Turned-around (RMB million) Shale Gas Market in Oil Production Overseas Market South-west China business 350 300 600 550.7 450 250 450 327.2 389.0 393.9 300 200 62.9% 58.5% 300 150 179.1 185.9 45.2% 150 37.4% 100 87.7 150 66.9 27.6% 48.7 20.8
Slide 9: Improved Working Capital Turnover; Enhanced Operation Efficiency
Improved Working Capital Turnover; Enhanced Operation Efficiency 1H 2016 1H 2017 Change Average Accounts Receivable Turnover Days 309 258 -51 Average Inventory Turnover Days 292 245 -47 Average Accounts Payable Turnover Days 144 139 -5 Major Working Capital Turnover Days 457 364 -93 9
Slide 10: Increased Net Cash Outflow to Support Business Recovery
Increased Net Cash Outflow to Support Business Recovery (RMB million) Operating Cash Flow Investing Cash Flow 1H 2016 1H 2017 1H 2016 1H 2017 -34.8 -75.3 -120.5 -206.6 • Increased net cash outflow to • Mainly for previous years payables. Less than support business recovery. It mainly 10.0 million wa
Slide 11: Deleted the put option obligation of the Iraqi transaction
Deleted the put option obligation of the Iraqi transaction. The consideration was reclassified as equity instead of liability. The payment will be received by the end of this month Accounting Treatment of the Consideration Based on the mutual confidence in cooperation Debt：Long-term Payable RMB 71
Slide 12: Short-term Borrowings Settled and Renewed
Capital was Secured as Short-term Borrowings were Settled and Renewed Short-term Borrowings (RMB million) As of to date, the capital was secured as all short-term borrowings were settled and renewed 822.0 The new loan periods were renewed to May – August 2018 739.6 2016.12.31 2017.06.30 12
Slide 13: Agenda
Agenda 2017 Interim Results Summary 2H 2017 Outlook & Three-year Strategy Q&A 13
Slide 14: Outlook for 2H2017
Outlook for 2H2017 1 Full-on internationalization, more opportunities in global emerging markets, numerous large-scale projects are underway 2 Full-on commencement of operation of the abundant order backlog, speed up execution of orders, revenue will have rapid growth 3 The Group will strengthen wor
Slide 15: Full-on internationalization, more opportunities on global emerging markets
Full-on internationalization, more opportunities on global emerging markets, numerous large-scale projects are underway Iraqi Markets Crude oil production is increasing, it is expected daily production increase to 5 million barrels at the end of this year investment increased in each oilfield, i
Slide 16: Abundant order backlog, speed up execution, rapid revenue growth
Full-on commencement of operation of the abundant order backlog, speed up execution of orders, revenue will have rapid growth Abundant Order Improvement of Orders Backlog Converting Ratio (RMB Million) 中亚非洲市场, Central Asia & Africa 美洲市场, Americas 331.9 52.9 22.0% China, Order backlog 915.4 amount: 1
Slide 17: Strengthen working capital management with Cash as King
Strengthen working capital management with Cash as King Strive for positive cash flow from operating activities • Continue to increase effort in collecting accounts receivable • Strengthen strategic supplier management, arrange reasonable payment • Strength co-operation with oversea banks, reduce ca
Slide 18: Strategic Plan for Next Three Years
Strategic Plan for Next Three Years Goal: To be the most competitive cost-reducing and production- increasing integrated technology service company in the global emerging markets of oil and gas development industry 1，Consolidate China market and overseas market expansion along “Belt and Road” of Chi
Slide 19: Strategic Plan for Next Three Years
Strategic Plan for Next Three Years The Group will stick with an asset-light model of resource integration, 1 and refine its service model of production-increasing and cost reducing integrated services 2 Enhance internationalized business ability and establishment of QHSE (Quality, Health, Safety, E
Slide 20: Business back on High Growth Track
业务重回高速增长轨道 Business back on High Growth Track With revenue growth and successful turnaround in 1H, we believe we are back to high speed growth track in 2017 In coming years, we will stick to asset-light strategy, aiming to realize the revenue target of over RMB5 billion with existing capacity, w
Slide 21: Agenda
Agenda 2017 Interim Results Summary 2H 2017 Outlook & Three-year Strategy Update Q&A 21
Slide 22: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement As at 30 June (RMB million) 2017 2016 Revenue 875.4 673.7 Cost of Sales (546.7) (499.6) Gross Profit 328.7 174.1 Other gains, net 3.0 65.5 Selling expenses (57.6) (49.9) Administrative expenses (69.4) (123.6) Research and development expenses (9.0) (17.2) Sa
Slide 23: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million As at 30 June 2017 As at 31 December 2016 Property, plant and equipment 2,361.1 2,272.2 Prepaid lease payments 77.9 46.9 Intangible assets 171.2 173.2 Investment in an associate 3.3 3.6 Prepayments and other receivables 104.7 103.9 Other non-current assets 2.0 6
Slide 24: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 30 June（RMB million） 2017 2016 Net cash used in operating activities (206.6) (75.3) Net cash used in investing activities (120.5) (34.8) Net cash from / (used in) financing activities 151.0 (145.5) Net decrease in cash and cash equivalents (176.0) (255.6) Cash a
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