Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — H1 2019 Earnings Presentation
30 slides from Anton Oilfield Services's earnings presentation, Aug 27, 2019
Slide 1: 2019 Interim Results Announcement
ANTON 安東 2019 Interim Results Announcement 2019.8.27
Slide 2: Disclaimer
Disclaimer • NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS (AS DEFINED UNDER REGULATION S OF THE U.S. SECURITIES ACT OF 1933, AS AMENDED(THE “SECURITIES ACT”) OUTSIDE OF THE UNITED STATES. • This presenta
Slide 3: Agenda
Agenda 2H19 下 半年 Outlook 2019 Interim Results Summary
Slide 4: 2019 Interim Results Summary
2019 Interim Results Summary Revenue Profit Attributed to Free Cash Flow Equity Holders ((RMB Million) ((RMB Million) ((RMB Million) 63.1 +147.8% +71.1% +41.6% 1,650.9 145.4 1H 2018 1H 1H 2019 2019 1,165.9 85.0 -132.0 1H 2018 1H 2019 1H 2018 1H 2019 4
Slide 5: Business Highlights
Business Highlights Deeply rooted in China and Iraq, and comprehensively broke the bottleneck of 01 development Integrated resources, strengthened cooperation, built core technologies and 02 competitive advantages under asset- light operating model 03 Overall improvement in business performance, bre
Slide 6: China, multi-approach formed a leaping development trend
China, multi-approach formed a leaping development trend Government Support With government support, fully entered the The Alliance of Private Companies market. Built an alliance of heavy equipment, comprehensively entered the shale-gas market in southwest China Cooperated with State-owned Companies
Slide 7: Iraq, super mega project led extraordinary development
Iraq, super mega project led extraordinary development Anniversary of operating Majnoon Highly recognition by MOO，fully support Anton Revenue of Iraq grew significantly +77.0% 744.5 420.6 1H 2018 1H 2019 7
Slide 8: Coping Iraqi model in GEM
Coping Iraqi model in GEM Office/Branch 8
Slide 9: Built competitive advantages under Asset Light model
Built competitive advantages under Asset Light model Alliance Sweet pot Integrated Capability of Oilfield Development Oilfield Geological Well Oil Surface Managing Well Drilling Technology Completion Production Construction Group 9
Slide 10: Breakthrough achievements in KPIs
Breakthrough achievements in KPIs Net Profit attributable to Equity holders ROE(Annual) (RMB Million) 12.0% 10.7% 71.1% 145.4 9.0% 85.0 6.6% 6.0% 1H18 1H19 3.0% Net Asset (RMB Million) 0.0% 1H18 1H19 11.6% 2,493.6 2,782.7 1H18 1H19 10
Slide 11: Breakthrough achievements in KPIs
Breakthrough achievements in KPIs Net Operating Cashflow Positive FCF in history (RMB Million) (RMB Million) 489.0% 268.0 45.5 63.1 1H14 1H15 1H16 1H17 1H18 1H19 1H18 1H19 -52.4 -132.0 -266.7 -403.7 CAPEX (RMB Million) 69.9 -1,181.8 46.5 1H18 1H19 11
Slide 12: Agenda
Agenda 2H19 Outlook 下 半年 2019 Interim Results Summary
Slide 13: Outlook of the second half of 2019
Outlook of the second half of 2019 01 Bright future of target market, sustainable high growth is achievable 02 Prioritize on quality of business，build high quality development model 03 Hard working，strengthen incentive，improve efficiency of human resource 04 Stick to core operating principle, achiev
Slide 14: Bright future of target market, sustainable high growth is achievable
Bright future of target market, sustainable high growth is achievable Continued growth of China Strong growth of Iraqi market market 2018 2019E 中国石油（亿元） CNPC(RMB 100 Million) 中国石化（亿元） Sinopec(RMB 100 Million) 中海油（亿元） CNOOC(RMB 100 Million) Brent油价（美元/桶，右轴） Resource：IEA Resource：Company Announcement
Slide 15: Comprehensive growth of China market
Comprehensive growth of China market High value added project in Xinjiang Shale gas drilling turnkey service Sidetrack drilling in Erdos basin 15
Slide 16: Win large project in Iraq
Win large project in Iraq Drilling turnkey project in East Baghdad、operated by IOC customer Workover project in Gharraf field Workover and completion project in West Quarna O&M and IFMS project 16
Slide 17: Copy Iraqi IFMS project at Chad
Copy Iraqi IFMS project at Chad Project type IFMS Ranked Number 1 in Biding Process After 3 round of competition, Anton is ranked number 1 in bidding process now Capital Asset light The Project Location Winner will be manager of the operator, zero capex, charge management fee 17
Slide 18: Quality Priors, Determined to Create a Quality Business Model
Quality Priors, Determined to Create a Quality Business Model Water control and completion 18
Slide 19: Hard Struggle, Strengthen Incentives, Improve Talent Efficiency
Hard Struggle, Strengthen Incentives, Improve Talent Efficiency 19
Slide 20: Adhere to the core operating mode to achieve long-term development
Adhere to the core operating mode to achieve long-term development ROE Free cash flow Profit Revenue Orders Long-Term Goal: To be a global leading integrated oilfield services company 20
Slide 21: Agenda
议程 2H19 下Outlook 半 年 2019 Interim Results Summary
Slide 22: Appendix
Appendix 22
Slide 23: I. Profit and Loss Statement
I. Profit and Loss Statement As at 30 June(RMB million) 2019 2018 Revenue 1.650.9 1,165.9 Cost of Sales (1,091.0) (705.7) Gross Profit 559.6 460.2 Other gains, net 5.3 7.4 Selling expenses (80.8) (60.4) Administrative expenses (71.0) (64.9) Research and development expenses (13.9) (7.9) Sales tax an
Slide 24: II. Balance Sheet
II. Balance Sheet RMB million 2019年6月30日 2018年12月31日 Property, plant and equipment 2,176.9 2,255.8 Prepaid lease payments - 75.6 Intangible assets 256.4 252.7 Interest in a joint venture 3.4 3.0 Other non-current assets 111.7 112.8 Deferred income tax assets 3.3 8.4 Inventories 41.5 52.1 Trade and n
Slide 25: III. Cash flow statement
III. Cash flow statement As at 31 December（RMB million） 2019 2018 Net cash generated from operating activities 268.0 45.5 Net cash used in investing activities (69.9) (46.5) Net cash generated from financing activities (251.3) (691.5) Net increase in cash and cash equivalents (53.3) (692.5) Cash and
Slide 26: IV. Business Cluster Mix
IV. Business Cluster Mix 1H19 Revenue Breakdown 1H19 EBITDA Breakdown EBITDA and EBITDA% of 1H19 (人民币百万元) 40.6% 41.8% 45% 330 40.7% 40% 300 32.4% 32.2% 270 35% 240 30% 44.9% 44.6% 210 25% 180 150 301.0 20% 120 217.6 15% 90 60 156.3 10% 22.6% 23.2% 30 5% 0 0% 钻井技朮集群 完井服务集群 采油服务集群 1H18 Revenue Breakdo
Slide 27: V. Cost Analysis
V. Cost Analysis Costs / Expense by 1H2019 1H2018 Change 1H2019 1H2018 Change function % of Revenue % RMB million % Cost of sales 66.1% 60.5% 5.6 1091.0 705.7 54.6 Selling expenses 4.9% 5.2% (0.3) 80.8 60.4 33.8 Administrative 4.3% 5.6% (1.3) 71.0 64.9 9.4 expenses R&D expenses 0.8% 0.7% 0.1 13.9 7.
Slide 28: VI: Product Line Summary
VI：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 contact
Slide 29: VI: Product Line Summary
VI：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 Integrated
Slide 30: VI: Product Line Summary
VI：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 production oper
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