Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — FY2023 Earnings Presentation
23 slides from Arabian Drilling's earnings presentation, Mar 19, 2024
Slide 1: Q4 & FY 2023 Earnings Call
Arabian“D Drilling BSS SS Bl 04 & FY 2023 EARNINGS CALL 19 March 2024
Slide 2: Disclaimer
Arabian Drilling | Q4& FY 2023 Earnings Call DISCLAIMER This presentation has been prepared by Arabian Drilling (the “Company” or “AD") based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for inform
Slide 3: The Presenting Team
Arabian Drilling | Q4 & FY 2023 Earnings Call THE PRESENTING TEAM The deployment of our We delivered significant three jackups in the wins in 2023 including the completion of the summer of 2023, offshore fleet expansion combined with an and the strategic improved service delivery performance in Q4'2
Slide 4: Agenda
Arabian Drilling Co Q4 & FY 2023 Earnings Call AGENDA 2023 Year in Review Q4’23 Highlights Business & Operations Financial Performance Closing Remarks Q&A Session
Slide 5: 2023 Year in Review
Slide 6: 2023 Year in Review
Arabian Drilling | Q4& FY 2023 Earnings Call 2023 YEAR IN REVIEW Dec’23 - Geothermal Drilling Feb’23 - Best IPO / Bond Awards AD received the Best IPO Award form Tadawul and the Deal of the Year Awards for Local Market IPO and Local Currency Corporate Bond from Capital Markets & ESG Finance Saudi Ar
Slide 7: Q4'23 Highlights
A, 04'23 Highlights Arabian Drilling Q4 & FY 2023 Earnings Call
Slide 8: Q4'23 Operational and Financial Highlights
Arabian Drilling Q4 & FY 2023 Earnings Call Operational Highlights Financials (SAR) - (%) Q4 vs. Q3 Utilization Rate 96% Q4'23 Revenue 987M, +7% Quarterly Non-Productive Time 0.97% EBITDA 435M, + 11% 36-month rolling REI 93.5% Net Income 183M, +31% Total 47 Rig Moves, with CF from Operating Activiti
Slide 9: Business & Operations
A, Business & Operations Arabian Drilling Q4 & FY 2023 Earnings Call
Slide 10: Recent Developments and Market Share
Arabian Drilling | Q4& FY 2023 Earnings Call Market Share Land — EoP Q4’23 TOTAL 13 RIGS AWARDED es in Unconventional Gas © g 4, Drillin RECENT DEVELOPMENTS $ Contract Awards & Extensions = Contract Award for 3 New Unconventional Gas Land Rig (Qr24) L@Beurac = Added SAR 100M firm backlog in Q4’23 wi
Slide 11: Backlog by Customer and Segment
Backlog by Customer — EoP Q4’23 (SAR M and %) Arabian Drilling | Q4& FY 2023 Earnings Call ALL RIGS ROLLING OFF IN 2023 Have Been Extended Backlog (SAR Ms) 12,690 71,908 - Q2'23 Q3'23 Q4'23 KIO377,3% 436, 4% Boker 997, “ Hughes 8% mek Gagauull gSohji ‘saudi aramco Backlog by Segment — EoP Q4’23 (%)
Slide 12: Rig Moves, Days Saved and Utilization
Arabian Drilling | Q4 & FY 2023 Earnings Call Number of Rig Move & Days Saved Vs. ARAMCO KPI ] 60 1.60 Q4'23 IMPROVED s0 12s TJ = = 40 Efficiencies » 20 . . — 10 4 38 49 47 Aramco Rig Efficiency index (REI) 0 94.9% 93.4% 935% res Qe'e3 Q3'23 Q4'e3 % of Rigs scoring ™=™ Rig Moves Completed ——Average
Slide 13: Financial Performance
A, Financial Performance Arabian Drilling Q4 & FY 2023 Earnings Call
Slide 14: Q4'23 Financial Highlights
\S Arabian Drilling | Q4&FY2023 Earnings Call Q4’23 FINANCIAL Highlights Qs sy oH 987M 435M 535M REVENUE EBITDA (+7% QoQ) (44% Margin) © a. a ise : (93) 10.1% = 1,754M FREE CASH FLOW (") ROE (“*) Gases *): Fee Cash Flow calculated a Cash Flow from Operations less CAPEX '**) ROE calculated as Net Inc
Slide 15: ▪ ▪ ▪ ▪ 1600 100.0% 90.0% 1400 80.0% 1200 70.0% 1000 60.0% ▪
▪ ▪ ▪ ▪ 1600 100.0% 90.0% 1400 80.0% 1200 70.0% 1000 60.0% ▪ 800 50.0% 40.0% 600 30.0% 400 20.0% ▪ 200 10.0% 0 0.0% ▪ 700 20.0% 2000 ▪ 1800 18.0% 600 1600 16.0% 1400 500 14.0% 1200 12.0% 400 1000 10.0% 300 800 8.0% 600 6.0% 200 400 4.0% 100 2.0% 200 0 0.0% 0
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▪ 1600 1400 1200 ▪ 1000 800 600 ▪ 400 200 0 ▪ ▪ ▪
Slide 17: Cash Flow Bridge YE'22 to YE'23
Arabian Drilling | Q4& FY 2023 Earnings Call CASH FLOW BRIDGE YE’22 to YE’23 (SAR Ms) 1,485 500 (225) 7 — 1,000 (116) (sc) MMMM 1435 (108) 832 EBITDA ST Deposits Dividends Zakat & Tax YE 2023 YE 2022 Capex (*) New Loan Interests, Net Others Commentary Key Drivers = Capex includes SAR 1.2B of Fleet E
Slide 18: Net Debt Increasing in Growth Capex Cycle
Arabian Drilling — | NET DEBT INCREASING in Growth Capex Cycle Q4 & FY 2023 Earnings Call Net Debt (SAR M) and Leverage Ratio Commentary 0.8x eae | mm Net Debt Leverage Ratio of 1.2x cES —Net Debt/EBITDA = Remains very moderately leveraged . : Ww . . = Expected to further increase with latest rig aw
Slide 19: FY'24 Guidance
19 Arabian Drilling Q4 & FY 2023 Earnings Call FY'24 Revenue expected to be in the range of SAR 3.6 B to SAR 3.9 B. FY’24 Capex expected to be in the range of SAR 2.1B to SAR 2.4 B. Future dividends based on cash management requirements to support long term growth
Slide 20: Closing Remarks
A, Closing Remarks Arabian Drilling Q4 & FY 2023 Earnings Call
Slide 21: Closing Remarks
Arabian Drilling Q4 & FY 2023 Earnings Call CLOSING REMARKS ]. Continuous Revenue Growth 2. Peak of Current Investment Cycle 3. Focus on Unconventional Start Up 4. Offshore Change Mitigation Plans 5. Evolving Segmental Mix
Slide 22: Arabdrill.com
This document and the information contained in it are given in confidence and are only to be used by the disclosing party and the receiving party to explore business opportunities relating to Arabian Drilling; they may not be disclosed to third parties or used for any other purpose without the expre
Slide 23: Glossary
Arabian Drilling Co. | Q4&FY 2023 Earnings Call GLOSSARY Glossary Description Active Rig Month Annual number of months where rigs generate revenue Backlog Future contracted revenue yet to be recognized Book-to-Bill Ratio DsO EBITDA EoP GHG Calculated as Backlog divided by LTM Revenue Circa / approxi