Ades Holding Company · TADAWUL:2382
Ades — H1 2024 Earnings Presentation
21 slides from Ades's earnings presentation, August 2024
Slide 1: ADES Holding Company 1H 2024 Trading Update
ADES Holding Company 1H 2024 Trading Update August 2024
Slide 2: Today's Presenters
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 4. 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 14 10 1 33* # of rigs 3 2 49 offshore2 38 onshore 1 Proven Consolidator Partner of Choice for Critical Committed to Operational Leading Scale & Profitability Visible, Contracted Growth C
Slide 4: Market Update
nta <2 ADES Market Update
Slide 5: Jackup Market Dynamics
Jackup Market Dynamics Jackup Supply & Demand Analysis Premium Jackup Fixtures 2011-2024 Latest 7 7 (69) 513 439 384 393 Current Fleet Marketed Real Expected Potential Cold Poetnetial Real Supply Average Supply Deliveries Stacked Rigs to Scrap 2025-2026 Jackup Demand Historical and projected yearly
Slide 6: Business Update
nta <2 ADES Business Update
Slide 7: Operational Highlights
Operational Highlights 98.0% in 1H 2024 28.05 SAR bn as at 1H 2024 (vs.98.3% 1H 2023) (vs. SAR 27.54 bn in FY 2023) Utilization Rate1 Total Backlog c.5.0 Years 0.06 Weighted Average Remaining in 1H 2024 Contract Tenor2 (vs. IADC standard of 0.44) Tenor TRIR3 All 19 rigs of the mega tender in KSA wer
Slide 8: Financial Highlights
Financial Highlights 2Q 2024 1H 2024 SARmn, % YoY Revenue 1,525 + 48.7% 3,057 + 54.3% EBITDA1 754 + 51.3% 1,506 + 61.7% As a % of Revenue 49.4% + 0.9pp 49.3% +2.2pp Net Profit 202 +90% 403 +105.9% Operating Cash Flow 787 + 61.9% 1,571 + 71.8% Source: ADES information. 1EBITDA includes a non-cash sha
Slide 9: Evolution of Rigs by Status and Geography
Evolution of Rigs by Status and Geography Rig Count Evolution as of 1H 2024 Offshore Rigs by Status (# of rigs) Onshore Rigs by Status (# of rigs) Total Rigs by Country Idle Temporarily Suspended 1H 2024 Active Contracted Idle Country Contracted Active Offshore Onshore This 38 38 49 compromises 1 49
Slide 10: 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 87.4% of backlog is coming from Gulf Cooperation KSA Council (GCC) countries, offering visibility and sustainability to
Slide 11: 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”) 0.44 Compositi
Slide 12: 1H 2024 Financial Update
nta <2 ADES 1H 2024 Financial Update
Slide 13: 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) 54.3% 48.5% 49.4% 47.0% 49.3% 1.9% 3,057 61.7% 48.7% 27.54 28.05 22.5% 1,981 1,507 1,525 51.3% 1,026 26.9% 23.6% 77.5% 932 27.9% 73.1% 754 76.4% 72.1% 498 2Q 2023 2Q 2024 1H 2023 1H 202
Slide 14: Growth Achieved Across Geographies
Growth Achieved Across Geographies Revenue Evolution by Country (SAR mn) 68.9% 1H 2023 1H 2024 2,170 22.0% 60.7% 9.1% 104.5% 1,285 319 288 225 199 167 152 86 99 7 42 - - KSA Egypt Kuwait Qatar Algeria & Tunisia India Indonesia Group revenues increased 54.3% y-o-y in 1H 2024 on account of: KSA revenu
Slide 15: Net Profitability and Equity Movements
Net Profitability and Equity Movements Net Profit (SAR mn) Group Equity (SAR mn) 9.3% 10.4% 13.3% 9.9% 13.2% 6,312 105.9% 403 90.1% 5,777 202 196 106 2Q 2023 2Q 2024 Net Profit margin 1H2023 1H 2024 FY 2023 1H 2024 Net profit in 1H 2024 recorded a significant 105.9% y-o-y increase to SAR 403mn in 1H
Slide 16: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 89.5% 88.9% 31.1% 60.5% 2,142 1,339 1,475 834 1H 2023 1H 2024 1H 2023 % Cash Conversion2 1H 2024 The Group’s free cash flow increased by 60.5% y-o-y mainly due to the growth in The Group’s CAPEX decreased by 31.1% y-o-y, mainly refl
Slide 17: Net Debt Evolution
Net Debt Evolution H1 2024 Net Debt Bridge1 (SAR mn) The balance of cash and cash equivalents as of 30 June 2024 amounted to SAR 768 mn. 1Net debt equals Interest-bearing loans and borrowings, less cash excluding lease liability. *The total amount of SAR 565mn includes SAR 358mn for interest expense
Slide 18: New Financing Overview
New Financing Overview To fund ADES’ growth prospects, ADES secured USD 3.0bn through upsizing the existing syndication Transaction Overview Tranche D&E The transaction marks one of the largest private sector financing in the region and one of the largest syndicated facilities in the history of KSA
Slide 19: Dividend Distribution and FY 2024 Guidance
Dividend Distribution and FY 2024 Guidance The Board of Directors recommends a dividend distribution SAR 237.5mn amounting to 60% of the Group’s1H-2024 net profit attributed Dividend for to equity holders of the parent, equivalent to SAR 237.5 1H-2024 million. Management reiterates its outlook and g
Slide 20: ei Wa oe
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Slide 21: 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