Ades Holding Company · TADAWUL:2382
Ades — Q1 2024 Earnings Presentation
22 slides from Ades's earnings presentation, May 2024
Slide 1: ADES Holding Company 1Q24 Trading Update
ADES Holding Company 1Q24 Trading Update May 2024
Slide 2: Today's Presenters and Agenda
Today’s Presenters AGENDA 1. Market Update 2. Business Update Hussein Badawy 3. Financial Update Dr. Mohamed Farouk Group Chief Executive Officer Group Chief Financial Officer 3. Q&A ……………. 2
Slide 3: Leader in Shallow Water Offshore and Onshore Drilling
Leader in Shallow Water Offshore and Onshore Drilling Global Scale Operations with 87 Rigs in 91 Countries 14 6 3 1 14 10 1 33 # of rigs 3 3 49 offshore2 38 onshore 1 Proven Consolidator Partner of Choice for Critical Committed to Operational Leading Scale & Profitability Visible, Contracted Growth
Slide 4: Market Update
nta <2 ADES Market Update
Slide 5: Global utilization for jack-ups >300ft expected to remain tight around 90%
Global utilization for jack-ups >300ft expected to remain tight around 90% despite KSA suspensions Jack-ups average day rates, individual fixtures and utilization (2001-2024f) Utilization rates expected to remain tight around the 90% mark even when factoring-in the suspensions in KSA Source: Clarkso
Slide 6: ADES KSA Contracts Update
ADES KSA Contracts Update Key Facts Suspension notice received for a total of 5 contracts from the current 33 offshore contracts with Aramco, representing only 15% of our operational offshore fleet in KSA Backlog is preserved – the suspended period will be added back to the contract tenor New contra
Slide 7: Pillars of ADES' Success in Mitigating the Impact
Pillars of ADES’ Success in Mitigating the Impact ADES’ DNA and Agility Allowed it to Effectively Weather the Suspensions Storm in KSA Market Insights and Customer-Centric Approach Competitive Pricing and Well-Positioned with a Existing Pre-Qualifications Expansion Strategy Allowed with Long-term Be
Slide 8: Business Update
nta <2 ADES Business Update
Slide 9: Operational Highlights
Operational Highlights 98.0% in 1Q 2024 26.75 SAR bn as at 1Q 2024 (vs.97% 1Q 2023) (vs. SAR 27.54 bn in FY 2023) Utilization Rate1 Total Backlog c.5.11 Years 0.03 Weighted Average Remaining in 1Q 2024 Contract Tenor2 (vs. IADC standard of 0.43) Tenor TRIR3 The 19 rigs of the mega tender in Saudi Al
Slide 10: Financial Highlights
Financial Highlights SARmn, % YoY 1Q 2024 1Q 2023 Revenue 1,532 955 + 60.5% EBITDA1 753 434 + 73.6% As a % of Revenue 49.1% 45.4% + 3.7pp Net Profit 201 89 +124.6% As a % of Revenue 13.1% 9.4% + 3.7pp Operating Cash Flow2 785 428 + 83.1% Source: ADES information. 1EBITDA includes non-cash share-base
Slide 11: Evolution of Rigs by Status and Geography
Evolution of Rigs by Status and Geography Rig Count Evolution Offshore Rigs by Status (# of rigs) Onshore Rigs by Status (# of rigs) Total Rigs by Country Active Contracted Idle 1Q 2024 These compromise 1 Active Contracted Idle Country MOPU & 1 Barge; with Offshore Onshore 49 jackup rigs 100% 49 38
Slide 12: Strong Backlog Providing Revenue and Cash Flow Visibility
Strong Backlog Providing Revenue and Cash Flow Visibility Significant Share from Offshore and GCC countries with Long-Term Contracts Backlog by Segment Backlog by Country More than 86% of backlog is coming from Gulf Cooperation Council KSA (GCC) countries, offering visibility and sustainability to t
Slide 13: Committed to Operational Excellence & Sustainability
Committed to Operational Excellence & Sustainability Best-in-Class Safety Record Supported by Continued Innovation The REI Drives Levels of Activity and Renewals with Aramco Total Recordable Injury Rate (TRIR)1 Local FTP4 Content3 10% 45% IADC2 Average Rig Efficiency REI Index (“REI”) 0.43 Compositi
Slide 14: 1Q 2024 Financial Update
nta <2 ADES 1Q 2024 Financial Update
Slide 15: Strong Ramp-up of Activity Leading to Significant Outperformance
Strong Ramp-up of Activity Leading to Significant Outperformance Backlog (SAR bn) Revenue (SAR mn) EBITDA (SAR mn) 60.5% 45.4% 2.9% 49.1% 1,532 73.6% 27.54 26.75 21.4% 955 753 28.6% 78.6% 71.4% 434 1Q 2023 1Q 2024 FY 2023 1Q 2024 1Q 2023 1Q 2024 Offshore Revenue Onshore Revenue EBITDA margin Total b
Slide 16: Growth Achieved Across Geographies
Growth Achieved Across Geographies Revenue Evolution by Country (SAR mn) 1Q 2023 1Q 2024 76.8% 18.5% 77.6% 5.6% 72.9% 1,106 625 152 144 117 86 83 87 30 40 17 - KSA Egypt Kuwait Qatar Algeria & Tunisia India Group revenues increased 60.5% y-o-y in 1Q 2024 on account of: KSA revenue growth of 76.8% dr
Slide 17: Net Profitability and Equity Movements
Net Profitability and Equity Movements Net Profit (SAR mn) Group Equity (SAR mn) 1 9.4% 13.1% 5.3% 124.6% 6,085 5,777 201 89 1Q 2023 Net Profit margin 1Q 2024 FY 2023 1Q 2024 Net profit for the quarter surged by 124.6% y-o-y to SAR 200.9 million in 1Q 2024, reflecting the Group’s strong revenue grow
Slide 18: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 87.7% 92.2% 25.2% 82.5% 1,035 694 774 380 1Q 2023 1Q 2024 1Q 2023 % Cash Conversion2 1Q 2024 The Group’s CAPEX decreased 25.2% y-o-y, mainly reflecting the completion of The Group’s free cash flow increased by 82.5% y-o-y mainly due
Slide 19: Net Debt Evolution
Net Debt Evolution Q1 2024 Net Debt Bridge1 (SAR mn) The balance of cash and cash equivalents as of 31 March 2024 amounted to SAR 475 mn. 1Net debt equals Interest-bearing loans and borrowings, less cash excluding lease liability. *The total amount of SAR 145mn includes SAR 89mn for interest expense
Slide 20: 2024 Outlook and Guidance
2024 Outlook and Guidance Strong outlook for FY 2024, reiterating our EBITDA guidance, ranging from SAR 2.89-3.04bn on account of continued ramp-up of the Group’s recent expansions, new deployments, as well as tight market conditions. Additional Vacuum in attractive Ramp-up of the Strong global depl
Slide 21: Q&A
Q&A
Slide 22: Important Notice
Important Notice This document and information contained herein (the “Information”) has been prepared by ADES Holding Company (the “Company”) for background purposes only and does not purport to be a full, accurate, complete or comprehensive analysis of the Company’s business, financial or trading p