Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2012 Earnings Presentation
28 slides from Anton Oilfield Services's earnings presentation, Mar 18, 2013
Slide 1: 2012 Annual Results
2012 ANNUAL RESULTS 18 March 2013
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by Anton Oilfield Services Group (the “Company”, together with its subsidiaries, the “Group”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairnes
Slide 3: Agenda
AGENDA 2012 ANNUAL RESULTS OUTLINE OPERATING & FINANCIAL REVIEW OUTLOOK Q&A We succeed by helping others to succeed 3
Slide 4: 2012 A NNUAL R ESULTS O UTLINE
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Slide 5: 2012 Annual Results Outline
2012 ANNUAL RESULTS OUTLINE Profit attributable to equity Revenue Operating profit holders of the Company (RMB Million) (RMB Million) (RMB Million) 398.0 2,004.6 302.6 1,258.9 174.9 77.3 2011 2012 2011 2012 2011 2012 Revenue in 2012 totaled RMB2004.6 million, up 59.2% y-o-y Operating profit totaled
Slide 6: Business Highlights
BUSINESS HIGHLIGHTS Market demand exceeded expectations; strategic partnerships forged with clients 1 for long-term cooperation and business growth Core services continued to lead growth, with new services swiftly opening up the 2 market to further contribute to the growth Implemented the integrated
Slide 7: Operating & Financial Review
OPERATING & FINANCIAL REVIEW
Slide 8: Market Demand Exceeded Expectations, Strategic Partnership Established
MARKET DEMAND EXCEEDED EXPECTATIONS, STRATEGIC PARTNERSHIP ESTABLISHED Domestic markets Overseas markets Conventional and tight gas E&P Demand continuously increased as activities increased to accelerate the Chinese investors’ overseas oilfields construction of natural gas production entered product
Slide 9: Both Domestic and Overseas Markets Recorded Accelerated Growth
BOTH DOMESTIC AND OVERSEAS MARKETS RECORDED ACCELERATED GROWTH By geographical markets (RMB Million) 448.6 Domestic markets 22.4% Tarim Basin, Erdos Basin and Sichuan Basin drove domestic market 22.8% 287.3 development 1,556.0 77.6% 77.2% 971.6 Overseas markets Al-Ahdab project in steady development
Slide 10: Both Core and Supplementary Services in Remarkable Development
BOTH CORE AND SUPPLEMENTARY SERVICES IN REMARKABLE DEVELOPMENT Revenue breakdown by core/supplementary services (RMB Million) The core business, oil and gas field development technical 256.9 12.8% services, continued to lead revenue growth, with an increase of 60.7% 13.6% 171.3 Among which, down-hol
Slide 11: Three Signature Services Drove Growth, New Services Quickly Opened Up Markets
THREE SIGNATURE SERVICES DROVE GROWTH, NEW SERVICES QUICKLY OPENED UP THE MARKETS Multistage fracking Coiled tubing Directional drilling (RMB Million) Three signature services booked revenue of RMB830.9 million, up 36.7% y-o-y, contributing to 41.5% of the Group’s total revenue. Among 413.2 239.7 17
Slide 12: Integrated-Service Strategy Implemented, Service Capacity Established
INTEGRATED-SERVICE STRATEGY IMPLEMENTED, SUCCESSFULLY ESTABLISHED SERVICE CAPACITY TARGETING THE REGULAR MARKET Investments made to increase the capacity of stimulation operations and of integrate services, with a focus on strengthening the construction of regular service capacity. The CAPEX of the
Slide 13: Expediting and Expanding Talent Acquisition and Training
EXPEDITING AND EXPANDING TALENT ACQUISITION AND TRAINING Continue to implement the “Talents First” strategy, further expanding and expediting its talent acquisition. As at 31 December 2012, the Group grew its staff size by 351 to 1,613 people from the end of 2011 Attract top talents and seasoned pro
Slide 14: Profitability Significantly Improved
PROFITABILITY SIGNIFICANTLY IMPROVED Cost analysis Net profit margin (as a percentage of total revenue) 18% 16% 14% 12% 15.8% 58.5% 10% 55.0% 8% 6% 7.3% 4% 21.4% 20.7% 2% 0% Cost of sales to revenue SG&A to revenue 2011 2012 2011 2012 Net profit margin increased by 8.5 percentage points to 15.8%, ma
Slide 15: Capital Efficiency Fully Enhanced
CAPITAL EFFICIENCY FULLY ENHANCED 2012 2011 Change Strengthened management in sales settlements, while incorporating the accounts receivables turnover day target Trade receivables as a key performance indicator, and align turnover days 134 178 -44 with a corresponding reward and penalty system to
Slide 16: Outlook
OUTLOOK
Slide 17: 2013-2015 Strategy
2013- 2015 STRATEGY Continue to implement the integrated service strategy, ramp up the service capacity targeting the regular market and invest in the regular-service Integrated services with equipment. Shift towards integrated services with regular services driven regular services driven by technic
Slide 18: Markets
MARKETS Establish strategic partnerships with state-owned oilfield service Domestic companies of complementary nature to the Group, so as to fully expand the market. Conventional gas and tight gas projects as major service targets. Leverage the role of Anton Research Institute as a platform to estab
Slide 19: Products
PRODUCTS Implement integrated-service strategy with regular services driven by technical services targeting the high end markets, especially focusing on providing services to address the output constraints of clients and provide integrated service to tackle the engineering challenges and to enhance
Slide 20: Strategic Resource Alignment
STRATEGIC RESOURCE ALIGNMENT Recruit large number of graduates and train them as well site engineers, aiming to provide a solid backup for the Group’s site operations Actively acquire industry-leading talents Establish long-term with international human resources experience in core areas strategic f
Slide 21: Strategic Resource Alignment
STRATEGIC RESOURCE ALIGNMENT Capital expenditure Continue to strengthen investments in pressure pumping equipment for stimulation capacity and other equipment. Make appropriate investments in drill rigs to meet demand for integrated turnkey services With its principle to reduce investment in non-cor
Slide 22: Management
MANAGEMENT Corporate Introduced executive vice-president of Schlumberger as a non- Governance executive director of the Group, further enhancing its corporate governance structure Strengthen QHSE management and established QHSE QHSE Committee of the board. Appointed the non-executive director from S
Slide 23: Finance
FINANCE Continue to consolidate existing bank financing and MTN financing channel, while expanding the utilization of different debt financing channels including supply chain financing, financial leasing and overseas debt financing, as a backup for the Group’s business development We succeed by help
Slide 24: Q&A
Q&A
Slide 25: Appendix: Consolidated Income Statement
APPENDIX 1 : CONSOLIDATED INCOME STATEMENT For The Year Ended 31 December 2012 2012 2011 Revenue 2,004.6 1,258.9 Cost of sales (1,103.3) (736.0) Gross Profit 901.3 522.9 Other gains, net 10.6 2.2 Selling expenses (154.5) (104.1) Administrative expenses (260.0) (164.8) Research and development expens
Slide 26: Appendix: Balance Sheets
APPENDIX 2 : BALANCE SHEETS For The Year Ended 31 December 2012 2012 2011 Property, plant and equipment 955.1 538.6 Land use rights 28.8 31.3 Intangible assets 371.2 365.4 Investment in a jointly controlled entity 4.0 4.0 Deferred income tax assets 19.6 17.6 Inventories 487.0 271.4 Trade and notes r
Slide 27: Appendix: Cash Flow Statement
APPENDIX 3 : CASH FLOW STATEMENT For The Year Ended 31 December 2012 2012 2011 Net cash generated from operating activities 349.6 220.4 Net cash used in investing activities (273.4) (197.6) Net cash generated from financing activities (11.2) 257.8 Net increase in cash and cash equivalents 65.0 280.6
Slide 28: Enhance Regular-Services, Enhance Integrate Services to Accelerate Fast Growth
ENHANCE REGULAR-SERVICES, ENHANCE INTEGRATE SERVICES TO ACCELERATE FAST GROWTH
Anton Oilfield Services Group — FY2012 Earnings Presentation on 6ix