Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2018 Earnings Presentation
34 slides from Anton Oilfield Services's earnings presentation, Mar 25, 2019
Slide 1: 2018 Annual Results Announcement
2018 Annual Results Announcement 2019. 3. 25 1
Slide 2: Agenda
Agenda 目录 Review of 2019 Outlook Q&A 2018 2
Slide 3: 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 4: Summary of results
Summary of results Revenue Profit attributable to equity holders (RMB'mn) (RMB'mn) +33.3% 2,935.9 +308.1% 222.4 2,202.7 54.5 2017 2018 2017 2018 EPS Final Dividend (RMB) (RMB'mn) 30.0 +276.2% 0.079 0.021 0.0 2017 2018 2017 2018 4
Slide 5: Highlights
Highlights 01 Achieved market breakthroughs, orders amounted record high 02 High-graded business model 03 Strong technical strengths, leading peers in all aspects 04 Deepened cooperation between industry and finance 05 Closed transaction of repurchase of Iraqi business 06 Optimized business philosop
Slide 6: Great market breakthroughs
Great market breakthroughs New orders China RMB'mn 4,055.2 3,218.6 2,973.8 836.6 Became the general contract service provider for the first time 2,194.1 2,648.2 in Sichuan shale gas market Developed circum-Mahu-Lake market in Xinjiang successfully 2014 2015 2016 2017 2018 Iraq Domestic New Order
Slide 7: High-graded business model
High-graded business model Full-range product and service system Majnoon – case of integrated oilfield mgt Impressive performance after taking over Non-productive time -78.8% NOC investments Turn-key projects, Integrated integrated oilfield Previous Manager Anton mgt services Production Full-package
Slide 8: Strong technical strengths, leading peers in all aspects
Strong technical strengths, leading peers in all aspects New drilling efficiency record in shale gas block individual technologies Boosted exploration in Xinjiang Single well drilling cycle Huge discovery of 100bn-cubic-meter level condensate gas reservoir in Tarim area -31.7% Applied key technolo
Slide 9: Deepened cooperation between industry and finance
Deepened cooperation between industry and finance Acknowledged by more commercial banks Expanded financial cooperation reduced overseas risks RMB'mn No. of commercial banks in cooperation +5 11 Performance bond: US$50 mn 6 Insurance coverage: US$40 mn 2017 2018 Undrawn credit line 583.0 261.0 +3
Slide 10: Closed transaction of repurchase of Iraqi business
Closed transaction of repurchase of Iraqi business Acquired EGM approval on 20 July 2018 minority interest ceased on 1 Jan. as per contract 28.3 250.7 Anton HBP 40% Anton: 100% 222.4 60% Before After Manority Equity attributed to shareholders Pre-agreement Post-agreement shareholding shareholding
Slide 11: Optimized business philosophy, better FCF and ROE
Optimized business philosophy, better FCF and ROE Cash flow(RMB'mn) 2017 2018 Change Net operating cash flow 195.6 424.3 228.7 Interest expenses 177.9 278.5 100.6 Capital expenditure 417.9 99.2 -318.7 Free cash flow -400.2 46.6 446.8 Increase in utilized drilling and workover Decrease in CapEx equip
Slide 12: Optimized business philosophy, better FCF and ROE
Optimized business philosophy, better FCF and ROE Crossing cycle with large increase of ROE business model Leading industry peers ROE ROE 20% 10% 9.6% 9.6% * 7.3% 0% 2014 2015 2016 2017 2018 4.9% 5% 2.8% -20% ROE 0% A Co provide drilling A Co Provide Drilling A Fracturing Equipment Anton Services in
Slide 13: Agenda
目录 Agenda 目录 Review of 2019 Q&A 2018 Outlook 113
Slide 14: Outlook of 2019
Outlook of 2019 01 Target global oil & gas emerging market 02 Seize huge opportunities 03 Break bottleneck by full round strategy 04 Leverage the effect of culture and incentive 05 Achieve high quality development based on ROE and FCF 14
Slide 15: Target global oil & gas emerging market
Target global oil & gas emerging market Government revenue relies on oil Less sensitivity to oil price (Billion $) Thousand bbl/d） 120% 200 6000 Iraq 100% Venezuela Kuwait Oil and natural gas exports as a share of total exports 80% Saudi Arab 4000 60% Russia Qatar United Arab 100 Norway 40% 2000 118
Slide 16: Seize huge opportunities
Seize huge opportunities Iraq China Rebuild the country Energy Safety Achieve the capacity of 30 million tons 85% growth of capacity in 3 years 30%+ growth of capacity in 3 years Achieve the capacity of 30 bcm of shale gas Resource：www. Iraq Business News.com Resource ：PetroChina News Center 16
Slide 17: Break bottleneck by full round strategy
Break bottleneck by full round strategy Full Full packages Integrated cycle Cover the full cycle of Provide the full packages IPM and integrated development of oil & of manpower, material and oilfield management gas equipment 17
Slide 18: Break bottleneck by full round strategy
Break bottleneck by full round strategy Brown Biosynthetic Performance Production Drilling drilling fluid RSS drilling Production O&M improvement oilfield recovery Reservoir and geology Coiled Completion tubing Refracturing Sweet Pot fracturing 18
Slide 19: Break bottleneck by full round strategy
Break bottleneck by full round strategy Leverage the advantage of market and technology to mobilize resource Manpower Procurement Equipment service Service Service Set up human Cooperate with Establish alliance of rig resource co, to SOE, to mobilize and pressure pump, to mobilize global material re
Slide 20: Break bottleneck by full round strategy
Break bottleneck by full round strategy Integrated oilfield IPM Bundling Services management 20
Slide 21: Leverage the effect of culture and incentive
Leverage the effect of culture and incentive Hard working Ameoba Incentive Encourage hard working Divide division into the Stimulate employee by under harsh environment smallest amoeba, which incentive undertake KPI 21
Slide 22: Achieve high quality development based on ROE and FCF
Achieve high quality development based on ROE and FCF ROE and FCF are core KPIs FCF ROE FCF is superior to profit, control the size of debt Profit Good structure of revenue, high growth Revenue Quality is superior to size Order 22
Slide 23: Conclusion
Conclusion In 2019，upstream is expanding, the market is dynamic! Target global oil & gas emerging market！ Execute the strategy of full round product and service！ Realize high quality development based on ROE and FCF！ 23
Slide 24: Agenda
Agenda Review of 2019 Outlook Q&A 2018 24
Slide 25: Appendix
ANTON 22 Appendix
Slide 26: Appendix 1: Consolidated Income Statement
Appendix 1: Consolidated Income Statement As at 31 December(RMB million) 2018 2017 Revenue 2,935.9 2,202.7 Cost of Sales (1,821.6) (1,373.0 Gross Profit 1,114.3 829.7 Other gains, net 11.9 9.7 Selling expenses (171.2) (152.6) Administrative expenses (197.2) (163.5) Research and development expenses
Slide 27: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet RMB million Dec. 31st 2018 Dec. 31st 2017 Property, plant and equipment 2,255.8 2,331.6 Prepaid lease payments 75.6 77.6 Intangible assets 252.7 224.3 Interest in a joint venture 3.0 2.7 Other non-current assets 8.4 304.8 Deferred income tax assets 52.1 63.7 Inventories 774
Slide 28: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement As at 31 December（RMB million） 2018 2017 Net cash generated from operating activities 424.3 195.6 Net cash used in investing activities (98.2) (399.5) Net cash generated from financing activities (795.5) 862.9 Net increase in cash and cash equivalents (46.9) 659.0 Cas
Slide 29: Appendix 4: Business Cluster Mix
Appendix 4: Business Cluster Mix 2018 Revenue Breakdown 2018 EBITDA Breakdown 2018 EBITDA&EBITDA Margin RMB million 700.0 46.6% 44.4% 50.0% 42.2% 45.0% 600.0 29.1% 27.8% 40.0% 500.0 35.0% 30.0% 45.6% 400.0 47.4% 25.0% 300.0 624.9 20.0% 360.8 15.0% 200.0 10.0% 100.0 329.3 25.3% 24.8% 5.0% 0.0 0.0% 20
Slide 30: Appendix 5: Cost Analysis
Appendix 5: Cost Analysis 2018 2017 Change 2018 2017 Change Costs / Expense by function % of Revenue % RMB million % Cost of sales 62.0% 62.3% -0.2% 1,821.6 1,373.0 32.7% Selling expenses 5.8% 6.9% -1.1% 171.2 152.6 12.2% Administrative expenses 6.7% 6.9% -0.2% 197.2 152.6 29.2% R&D expenses 1.0% 1.
Slide 31: Appendix 6: Product Line Summary
Appendix 附件六:产品线介绍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
Slide 32: 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 33: 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 34: Thanks!
Thanks! 34
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