Adnoc Drilling Company Pjsc · ADX:ADNOCDRILL
Adnoc Drilling Company Pjsc — Q3 2023 Earnings Presentation
28 slides from Adnoc Drilling Company Pjsc's earnings presentation, Nov 14, 2023
Slide 1: Third Quarter 2023 Results Presentation
ADNOC Classification: Public THIRD QUARTER 2023 RESULTS PRESENTATION NOVEMBER 14, 2023 1 ADNOC DRILLING
Slide 2: Disclaimer
ADNOC Classification: Public DISCLAIMER This presentation has been prepared by ADNOC Drilling Company PJSC (the “Company”) based on publicly available information and non-public information to assist you in making a preliminary analysis of the content referenced herein solely for informational purpo
Slide 3: Agenda & Presenters
ADNOC Classification: Public AGENDA & PRESENTERS 3Q Highlights Abdulrahman Abdullah Al Seiari Chief Executive Officer Operational Highlights Financial Performance Christopher McDonald Chief Operating Officer Guidance Closing Remarks Youssef Salem Chief Financial Officer Appendix 3 ADNOC DRILLING
Slide 4: 3Q Highlights
ADNOC Classification: Public 3Q HIGHLIGHTS 4 ADNOC DRILLING
Slide 5: Robust Earnings Growth Driven by Expanding Rig Fleet
ADNOC Classification: Public ROBUST EARNINGS GROWTH DRIVEN BY EXPANDING RIG FLEET Safety Financial Operational & Environment 40,868 GJ/Rig 14% YoY 1st International rig Energy intensity vs target of 41,708 9M 2023 revenue increase Mobilized rig to Jordan for integrated drilling GJ/Rig in 9M23 progra
Slide 6: Executing on Our Strategy
ADNOC Classification: Public EXECUTING ON OUR STRATEGY LONG-TERM STRATEGY FOR GROWTH FOCUSED ON FOUR AREAS ADNOC Production Unconventional Increasing Development Capitalize on ADNOC's plans to increase Become a Middle East regional leader in production capacity to 5 million barrels per unconventiona
Slide 7: Executing on Our Strategy: Partnership with Alpha Dhabi
ADNOC Classification: Public EXECUTING ON OUR STRATEGY LONG-TERM STRATEGY FOR GROWTH FOCUSED ON FOUR AREAS ADNOC Production Unconventional Partnership with Alpha Dhabi Increasing Development • JV to create dedicated platform targeting global investments in technology-enabled Capitalize on ADNOC's pl
Slide 8: Operational Highlights
ADNOC Classification: Public OPERATIONAL HIGHLIGHTS 8 ADNOC DRILLING
Slide 9: Growing Fleet Leading to Operational Efficiency
ADNOC Classification: Public GROWING FLEET LEADING TO OPERATIONAL EFFICIENCY KEY OPERATIONAL HIGHLIGHTS Owned Rigs Drilling Average Duration (days) Commentary Onshore Jackup Island Onshore Offshore 124 159 wells drilled in 3Q23 compared to 108 116 84 85 10 77 156 wells in 2Q23 10 10 31 35 25 Integra
Slide 10: Strong Operational Performance
ADNOC Classification: Public STRONG OPERATIONAL PERFORMANCE SEGMENTAL OPERATING HIGHLIGHTS Onshore ▪ 95% rig availability for Onshore operations in 3Q23 versus 94% in 2Q23. ▪ Completed ADNOC Drilling’s second successful 5 ½” Frac String cement job utilizing ADNOC Drilling’s cementing services. The s
Slide 11: We Continue to Pursue Ambitious ESG Goals
ADNOC Classification: Public WE CONTINUE TO PURSUE AMBITIOUS ESG GOALS ESG FRAMEWORK AND PERFORMANCE HIGHLIGHTS Climate, Emissions and Energy Economic and Social Contribution Health, Safety and Security • Support ADNOC’s target to decrease GHG • Economic performance of the Company • 6 recordable inc
Slide 12: Decarbonization Initiatives Driving ESG Agenda
ADNOC Classification: Public DECARBONIZATION INITIATIVES DRIVING ESG AGENDA PURSUING AMBITIOUS GOALS Camps Emission Abatement Rigs Emission Abatement Sustainability Initiatives Base Camp Grid Connectivity Green Rig Remote Operation Center (ROC) • Madinat Zayed nearing completion, • Acquired a total
Slide 13: Financial Performance
ADNOC Classification: Public FINANCIAL PERFORMANCE 13 ADNOC DRILLING
Slide 14: Strategic Partnership with Alpha Dhabi
ADNOC Classification: Public STRATEGIC PARTNERSHIP WITH ALPHA DHABI FURTHER DEVELOPING AND SCALING UP ADNOC DRILLING’S INTEGRATED DRILLING AND OFS OFFERING Strategic Rationale Value Accretion Structure • ADNOC Drilling and Alpha Dhabi have agreed • Leveraging ADNOC Drilling’s scalable ecosystem, • T
Slide 15: Financial Highlights
ADNOC Classification: Public FINANCIAL HIGHLIGHTS STRONG REVENUE GROWTH DRIVES UP PROFITABILITY (USD, Millions) Revenue EBITDA Net Profit % growth % EBITDA margin % growth 16% 7% 49% 49% 36% 13% 776 776 45% 48% 381 381 257 257 724 344 670 228 299 189 3Q22 3Q23 2Q23 3Q23 3Q22 3Q23 2Q23 3Q23 3Q22 3Q23
Slide 16: Segmental Revenue
ADNOC Classification: Public SEGMENTAL REVENUE TOP-LINE YEAR-ON-YEAR GROWTH ACROSS ALL BUSINESS SEGMENTS (USD, Millions) Onshore Offshore Jack-up Commentary % growth % growth Growth across all segments drives 16% YoY increase in revenue to $776 million 2% 9% 39% 4% 372 378 378 199 192 199 346 Onshor
Slide 17: EBITDA Generation
ADNOC Classification: Public EBITDA GENERATION INDUSTRY-LEADING MARGINS (USD, Millions) Onshore Offshore Jack-up Commentary % EBITDA margin % EBITDA margin 3Q23 EBITDA up 27% YoY driven by strong 50% 50% 66% 66% 66% revenue growth, with leading margins 48% 46% 190 190 131 126 131 Onshore: 3Q23 EBITD
Slide 18: Strong Cashflow and Balance Sheet
ADNOC Classification: Public STRONG CASHFLOW AND BALANCE SHEET HEALTHY CASH POSITION WITH AMPLE LIQUIDITY TO POWER RIG FLEET GROWTH (USD, Millions) Cash from Operating Activities Commentary Cash from Operating Activities • 3Q23 cash from operating activities stood at $337 million, up 6% from the pri
Slide 19: CapEx Supports Fleet Expansion
ADNOC Classification: Public CAPEX SUPPORTS FLEET EXPANSION DELIVERING ON THE ANTICPATED INVESTMENT RAMP-UP (USD, Millions) CapEx Commentary % of revenue CapEx 76% 76% • 3Q23 CapEx of $592 million, in line with the 592 592 expected ramp-up in rig acquisitions 33% 25% • Rig fleet expansion program pr
Slide 20: Guidance
ADNOC Classification: Public GUIDANCE 20 ADNOC DRILLING
Slide 21: Accelerated Growth Targets
ADNOC Classification: Public ACCELERATED GROWTH TARGETS FY2023 GUIDANCE UPDATED ON HIGHER VISIBILITY, MEDIUM-TERM GUIDANCE REITERATED (USD, Millions) FY2023 Guidance FY2023 Updated Guidance Medium-Term Guidance Revenue 3,000 - 3,200 3,000 - 3,200 • Revenue CAGR in the 12-16% range Onshore Revenue 1,
Slide 22: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS 22 ADNOC DRILLING
Slide 23: Closing Remarks
ADNOC Classification: Public CLOSING REMARKS Strong earnings New technology Delivering on our Enabling growth driven by partnership and ESG agenda by ADNOC’s expanding fleet first step into pursuing accelerated and cost regional ambitious goals production efficiencies expansion with capacity targets
Slide 24: Appendix
ADNOC Classification: Public APPENDIX 24 ADNOC DRILLING
Slide 25: Financial Summary 3Q23
ADNOC Classification: Public FINANCIAL SUMMARY 3Q23 (USD, Millions) 3Q23 3Q22 YoY 2Q23 QoQ 9M23 9M22 YoY Revenue 776 670 16% 724 7% 2,216 1,940 14% Opex1 (395) (371) 6% (380) 4% (1,158) (1,061) 9% EBITDA2 381 299 27% 344 11% 1,058 879 20% Depreciation and amortization (111) (101) 10% (103) 8% (315)
Slide 26: Segmental Results 3Q23
ADNOC Classification: Public SEGMENTAL RESULTS 3Q23 (USD, Millions) 3Q23 3Q22 YoY 2Q23 QoQ 9M23 9M22 YoY Revenue 776 670 16% 724 7% 2,216 1,940 14% Onshore 378 372 2% 346 9% 1,079 1,074 0% Offshore Jack-up 199 143 39% 192 4% 575 431 33% Offshore Island 54 52 4% 52 4% 157 153 3% Oilfield Services (OF
Slide 27: Our Investment Proposition
ADNOC Classification: Public OUR INVESTMENT PROPOSITION VALUE CREATION PROFILE Near-term growth plans driven by the expansion of production capacity from 4 to 5 million barrels per day by 2027 Key enabler in achieving UAE’s goal of gas self-sufficiency and development of unconventional resources by
Slide 28: Thank You
ADNOC Classification: Public THANK YOU www.adnocdrilling.ae ir@adnocdrilling.ae 28 ADNOC DRILLING
ADNOC Drilling Company PJSC — Q3 2023 Earnings Presentation on 6ix