Arabian Drilling Co. · TADAWUL:2381
Arabian Drilling — Q2 2023 Earnings Presentation
20 slides from Arabian Drilling's earnings presentation, Aug 3, 2023
Slide 1: Q2 2023 Earnings Call
Q2 2023 Earnings Call 03 August 2023 Driving Value. Delivering Excellence.
Slide 2: Disclaimer
Q2’23 Earnings Conference Call – 03 August 2023 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 inf
Slide 3: The Presenting Team
Q2’23 Earnings Conference Call – 03 August 2023 The Presenting Team Ghassan Mirdad Hubert Lafeuille Chief Executive Officer Chief Financial Officer 3
Slide 4: Agenda
Q2’23 Earnings Conference Call – 03 August 2023 Agenda 1 Q2’23 Highlights 2 Business Landscape 3 Operational Highlights 4 Financial Performance 5 Forward-Looking Guidance 7 4
Slide 5: Q2'23 Highlights
Q2’23 Earnings Conference Call – 03 August 2023 Q2’23 Highlights
Slide 6: Q2'23 At A Glance
Q2’23 Earnings Conference Call – 03 August 2023 Q2’23 At A Glance Operational Highlights Financials (SAR) – Q2’23 Vs. Q1’23 Utilization Rate 94% (44 active rigs) Q2’23 Revenue 791M, +1% Quarterly Non-Productive Time 1.30% EBITDA of 42.4%, +90 bps 36-month rolling REI 93.6% Net Income 140
Slide 7: Business Landscape
Q2’23 Earnings Conference Call – 03 August 2023 Business Landscape
Slide 8: Major Win on Unconventional Gas
Q2’23 Earnings Conference Call – 03 August 2023 Major Win on Unconventional Gas Contract Awards / Termination / Extensions Market Share Land – EoP Q2’23 • Q2’23 backlog addition includes 1Y awards / extensions 1 with both SLB and Baker for 2 Land Rigs each Others • Company won a 10-rig award out of
Slide 9: Operational Highlights
Q2’23 Earnings Conference Call – 03 August 2023 Operational Highlights
Slide 10: Backlog Boost On The Way…
Q2’23 Earnings Conference Call – 03 August 2023 Backlog Boost On The Way… Backlog Trend (SAR M) – EoP Backlog by Segment – EoP Q2’23 (%) 9,535 8,864 8,098 7,601 44% 56% Offshore Land Q3'22 Q4'22 Q1'23 Q2'23 Contract Ending Date by Year (number of rigs) Backlog by Customer – EoP Q2’23 (SAR M and %) 4
Slide 11: Rig Move Efficiencies Revitalized
Q2’23 Earnings Conference Call – 03 August 2023 Rig Move Efficiencies Revitalized Aramco Rig Efficiency Index (‘REI’) Number of Rig Move & Days Saved (*) Average REI (Quarterly) Average REI (36-months Rolling) Rig Moves Completed Average Net Days Saved / Rig Move 60 2.5 94.5% 93.4% 93.7% 93.6% 50 2.
Slide 12: Financial Performance
Q2’23 Earnings Conference Call – 03 August 2023 Financial Performance
Slide 13: Improved Revenue with 100% EBITDA Flow Through
Q2’23 Earnings Conference Call – 03 August 2023 Improved Revenue with 100% EBITDA Flow Through Revenue (SAR M) EBITDA (SAR M & % Revenue) Commentary QoQ Revenue in line with similar rig 658 1000 323 335 516 100.0% activity and day rates 1,570 90.0% 779 791 1,251 80.0% • Same rig count & status as Q1
Slide 14: Land Segment Rebounding as Expected
Q2’23 Earnings Conference Call – 03 August 2023 Land Segment Rebounding as Expected Revenue – Offshore (SAR M) Revenue – Land (SAR M) Commentary Offshore Segment: 700 601 • QoQ flat revenue reflecting a 100% 600 969 utilization rate and no significant 906 500 change in rig status or day rate 345 400
Slide 15: Normalized CFO Stable…Accelerated Capex
Q2’23 Earnings Conference Call – 03 August 2023 Normalized CFO Stable…Accelerated Capex Quarterly Cash Flow, EoP Cash & STI Balance (SAR M) Net Working Capital (SAR M & in % of Revenue) CF Financing CF Investing CF Operations Cash & STI (EoP) 20% 450 18% 40 0 2,537 15% 16% 350 1,979 14% 1,837 499 1,
Slide 16: Growth Proof Balance Sheet
Q2’23 Earnings Conference Call – 03 August 2023 Growth Proof Balance Sheet Net Debt (SAR M) Leverage Ratios Borrowings Lease Liabilities Cash & STI Net Debt 1.2 Net Debt / EBITDA Total Liabilities / Equity 1.1 0 1.0 184 169 169 1.0 0.9 +23% 3,218 0.8 713 879 681 +29% 879 0.7 0.7 0.7 0.7 0.7 0.7 2,54
Slide 17: Forward-Looking Guidance
Q2’23 Earnings Conference Call – 03 August 2023 Forward-Looking Guidance
Slide 18: Forward-Looking Guidance
Q2’23 Earnings Conference Call – 03 August 2023 Forward-Looking Guidance FY’23 Revenue guidance remains unchanged and expected to be in the range of SAR 3.3 Revenue billion to SAR 3.5 billion FY’23 Capital Expenditure is expected to increase following Unconventional Gas 10-rig award. CAPEX The Compa
Slide 19: Thank You Q&A Session
Thank You Q&A Session 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 pur
Slide 20: Glossary
Q2’23 Earnings Conference Call – 03 August 2023 Glossary Glossary Description Backlog Future contracted revenue yet to be recognized. Book-to-Bill Ratio Calculated as Backlog divided by LTM Revenue c. Circa / approximately CFF Net cash generated from Financing activity CFI Net cash used in Investing