Ades Holding Company · TADAWUL:2382
Ades — 9M 2023 Earnings Presentation
25 slides from Ades's earnings presentation, November 2023
Slide 1: ADES Holding Company 9M 2023 Trading Update
ADES Holding Company 9M 2023 Trading Update November 2023
Slide 2: Today's Presenters and Agenda
Today’s Presenters AGENDA 1. JU Market Update 2. Business Update Hussein Badawy 3. Financial Update Dr. Mohamed Farouk Group Chief Executive Officer Group Chief Financial Officer 4. Q&A ……………. Source: ADES information. 2
Slide 3: Leader in Shallow Water Offshore and Onshore Drilling
Leader in Shallow Water Offshore and Onshore Drilling Global Scale Operations with 85 Rigs in 71 Countries Proven Consolidator Leading Scale & Profitability Through Cycles 9M-22 9M-23 1 85 rigs3 Revenue SAR 1.7bn SAR 3.1bn 12 SAR 0.7bn SAR 1.5bn +2.1x4 since 2018 EBITDA Margin (%) ~42% ~48% 3 3 6 Pa
Slide 4: Jackup Market Update
nta <2 ADES Jackup Market Update
Slide 5: Global Net Number of Reactivations Increased With Utilization
Global Net Number of Reactivations Increased With Utilization Global Offshore Rig Reactivations and Utilization 2015-2023 60 100 95 50 48 92.7% 90 85 Number of reactivations 40 80 Utilization (%) 30 27 75 26 24 70 20 20 16 65 10 60 10 55 1 0 0 50 2015 2016 2017 2018 2019 2020 2021 2022 2023 Reactiva
Slide 6: Steady Growth in the High-Spec Jackup Market
Steady Growth in the High-Spec Jackup Market Global Higher-Spec Jackup Demand Jan 2018-May 2023 Significant market tightness (from 75 rigs supplied in 2018 to 20 in 2023) resulting in higher marketed utilization (from 66.1% in 2018 and 92.7% in 2023) JU >400-IC JU 361-400-IC JU 301-360-IC JU Harsh H
Slide 7: Significant Jackup Movement to the Middle East
Significant Jackup Movement to the Middle East 53 rigs moves from 2022 to 2023, creating tightness in other markets Rig reactivations and utilization 2015-2023 Rigs Transferred to Middle East Operators NW Europe to Middle East: China to Middle East • 35 (66%) to SaudiAramco 1. Perro Negro 8 1. Perro
Slide 8: Business Update
nta <2 ADES Business Update
Slide 9: Operational Highlights
Operational Highlights 98.2% in 9M 2023 27.9 SAR bn as at 9M 2023 (vs.98.5% 9M 2022) (vs. SAR 27.4 bn in FY 2022) Utilization Rate1 Total Backlog c.5,4 Years 0.08 Weighted Average Remaining in 9M 2023 Contract Tenor2 (vs. IADC standard of 0.57) Tenor RIFR 10 rigs were operational out of the 19 rigs
Slide 10: Financial Highlights
Financial Highlights 3Q 2023 9M 2023 SARmn, % YoY Revenue 1,079 + 82.7% 3,060 + 83.2% EBITDA 526 + 121.5% 1,458 + 108.0% As a % of Revenue 48.8% + 8.6pp 47.7% + 5.7pp Net Profit 87.4 + 282.8% 283 +61.1% Normalized Net Profit1 87.4 + 99.5% 283 + 39.3% Source: ADES information. 1 Calculated as the rep
Slide 11: Evolution of Rigs by Status and Geography
Evolution of Rigs by Status and Geography Rig Count Evolution Offshore Rigs by Status (# of rigs) Onshore Rigs by Status (# of rigs) Total Rigs by Country Uncontracted / idle 9M 2023 Uncontracted / idle Country Contracted, yet to commence operations Contracted, yet to commence operations Offshore On
Slide 12: 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 By Segment By Country KSA More than 93% of backlog is coming from Gulf Cooperation Council (GCC) countries, offering visibility and sustainability to the business Onsh
Slide 13: 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 Recordable Injury Frequency Rate (RIFR)1 IADC2 Local FTP4 Average Content3 10% 45% 0.57 Rig Efficiency REI Index (“REI”) Compo
Slide 14: Financial Update
nta <2 ADES Financial Update
Slide 15: 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) 83.2% Offshore Revenue 40.2% 48.8% 42.0% 47.7% 1.8% 3,060 Onshore Revenue 108.0% 27.4 27.9 27.2% 1,458 82.7% 1,670 121.5% 1,079 38.1% 701 590 72.8% 526 27.7% 35.8% 61.9% 238 72.3% 64.2%
Slide 16: Growth Achieved Across Geographies
Growth Achieved Across Geographies Revenue Evolution by Country (SAR mn) 2022 9M 2022 9M 2023 89.2% 2,012 1,571.5 1,063 77.1% 405 33.6% 316 341.6 313.1 130.9% 255 132.6% 229 237 201.1 71 110 39.8 31 KSA Egypt Kuwait Qatar Tunisia & Algeria The total revenues increased 83.2% yoy in 9M 2023 KSA ▪ the
Slide 17: Net Profitability and Equity Movements
Net Profitability and Equity Movements Net Profit (SAR mn) Group Equity (SAR mn) Statutory Net Profit Normalized Net Profit 1 16.8% 3.9% 7.4% 8.1% 8.1% 10.5% 12.2% 9.3% 9.3% 2,637 39.3% 283 61.1% 283 203 99.5% 176 2,258 87.4 283.3% 87.4 43.8 22.8 3Q 2022 3Q 2023 9M 2022 9M 2023 2022A 9M 2023 % Margi
Slide 18: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 85.3% 80.0% 87.0% 3,923 126% 1,269 15.3% 2,955 894 2,563 560 2022A 9M 2022 9M 2023 2022A 9M 2022 9M 2023 % Cash Conversion2 The Group has enhanced its working capital management abilities and has continued to develop its refurbishme
Slide 19: Net Debt as of 30-Sep-2023
Net Debt as of 30-Sep-2023 9M 2023 Net Debt Bridge (SAR mn) It’s worth highlighting the balance represents the net debt as of Sep-23 that doesn’t take into consideration the primary IPO proceeds of SAR 3.1bn (credited during October 2023) Source: ADES information. Net debt equals Interest-bearing lo
Slide 20: Q&A
Q&A
Slide 21: Disclaimer
Disclaimer 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 positio
Slide 22: Appendix
nta <2 ADES Appendix
Slide 23: Fleet Status – Offshore (1/2)
Fleet Status – Offshore (1/2) Backlog Overview by Rig Rig Status Rig Name 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Admarine 261 KSA Admarine 262 Admarine 266 Admarine 655 Admarine
Slide 24: Fleet Status – Offshore (2/2)
Fleet Status – Offshore (2/2) Backlog Overview by Rig Rig Name Rig Status 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Egypt Admarine I Admarine II Admarine III Admarine IV Admarine V
Slide 25: Fleet Status – Onshore
Fleet Status – Onshore Backlog Overview by Rig Rig Rig Status Name 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Egypt Rig 810 Rig 815 ADES 1 Kuwait Rig 155 Rig 776 Rig 870 Rig 871 Rig