Ades Holding Company · TADAWUL:2382
Ades — 9M 2024 Earnings Presentation
21 slides from Ades's earnings presentation, November 2024
Slide 1: ADES Holding Company 9M 2024 Trading Update
ADES Holding Company 9M 2024 Trading Update November 2024
Slide 2: Today's Presenters and Agenda
Today’s Presenters AGENDA 1. Market Update 2. Business Update Hussein Badawy 3. Financial Update Dr. Mohamed Farouk Group Chief Executive Officer Group Chief Financial Officer 4. Q&A ……………. 2
Slide 3: Leader in Shallow Water Offshore and Onshore Drilling
Leader in Shallow Water Offshore and Onshore Drilling Global Scale Operations with 89 Rigs in 10 Countries 14 6 3 1 14 11 1 30 # of rigs 3 3 1 51 offshore 38 onshore 2 Proven Consolidator Partner of Choice for Critical Committed to Operational Leading Scale & Profitability Visible, Contracted Growth
Slide 4: Market Update
nta <2 ADES Market Update
Slide 5: Continued Demand and Investment in Oil & Gas well into 2050
Continued Demand and Investment in Oil & Gas well into 2050 Projected Global Energy Mix (mboe/d, %)* Global Oil Supply Scenarios Outlook* 120 Oil & Gas Coal Nuclear Hydro Bioenergy Other Renewables 374.0 100 327.3 14% 301.1 6% 3% 10% 10% 80 New Resources & Millions barrels per day 10% 3% 3% Projects
Slide 6: Sustained Tightness in the Offshore Jackup Market
Sustained Tightness in the Offshore Jackup Market Tight supply-demand dynamics set to continue … …Utilization rates to remain tight hovering around the 90% mark even when factoring-in the suspensions in KSA Global Jackup Utilization for Premium & Standard Units (2013–Current) 100% 141 7 90% (69) 80%
Slide 7: Business Update
nta <2 ADES Business Update
Slide 8: Operational Highlights
Operational Highlights 97.7% in 9M 2024 27.79 SAR bn as at 9M 2024 (vs.98.2% 9M 2023) (vs. SAR 27.54 bn in FY 2023) Utilization Rate1 Total Backlog c.5.1 Years 0.07 Weighted Average Remaining in 9M 2024 Contract Tenor2 (vs. IADC standard of 0.44) Tenor TRIR3 The Group closed its acquisition of two T
Slide 9: Financial Highlights
Financial Highlights 3Q 2024 9M 2024 SARmn, % YoY Revenue 1,573 + 45.8% 4,630 + 51.3% EBITDA1 797 + 51.5% 2,303 + 58.0% As a % of Revenue 50.7% + 1.9pp 49.8% +2.1pp Net Profit 203 +132.7% 606 +114.2% Operating Cash Flow2 793 + 53.3% 2,364 + 65.2% Source: ADES information. 1EBITDA includes a non-cash
Slide 10: 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 The Group’s total backlog stood at SAR 27.79 bn as of 30 Sep 2024, up from SAR 27.54 billion as of 31 December 2023. This comes despite a revenue burn-rate of SAR 4.63
Slide 11: 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 Total Recordable Injury Rate (TRIR)1 Local FTP4 Content3 10% 45% IADC2 Average Rig Efficiency REI Index (“REI”) 0.44 Compositi
Slide 12: 9M 2024 Financial Update
nta <2 ADES 9M 2024 Financial Update
Slide 13: Backlog Maintained Despite Revenue Burn Rate Thanks to Contract Renewals and Awards
Backlog Maintained Despite Revenue Burn Rate Thanks to Contract Renewals and Awards Backlog (SAR bn) Contract Awards and Renewals in 9M-2024 0.9% The newly awarded long-term contract for one offshore rig in KSA in KSA 3Q-2024. 27.54 27.79 The expansion in Kuwait with an award for six onshore contrac
Slide 14: Strong Ramp-up of Activity Leading to Growth Across Geographies
Strong Ramp-up of Activity Leading to Growth Across Geographies Revenue Evolution by Country (SAR mn) 58.2% 9M 2023 9M 2024 3,183 54.9% 13.6% 0.8% 97.2% 2,012 490 316 405 350 255 253 160 140 54 - 71 - KSA Kuwait Egypt Qatar India Algeria & Tunisia Indonesia & Thailand Strong revenue growth of 51.3%
Slide 15: Robust Profitability Reflecting Strong Offshore Growth and Lean Cost Structure
Robust Profitability Reflecting Strong Offshore Growth and Lean Cost Structure Consolidated Revenue by Segment (SAR bn) EBITDA (SAR mn) 51.3% 48.8% 50.7% 47.6% 49.8% 4,630 22.7% 58.0% 3,060 45.8% 2,303 27.2% 51.5% 1,573 77.3% 1,079 22.9% 1,458 72.8% 27.7% 77.1% 797 72.3% 526 3Q 2023 3Q 2024 9M 2023
Slide 16: Strong Growth and Margin Enhancement Drive Net Profit Increase
Strong Growth and Margin Enhancement Drive a Significant 132.7% y-o-y Increase in 3Q-2024 Net Profit Net Profit (SAR mn) Group Equity1 (SAR mn) 7.7% 8.1% 12.9% 9.3% 13.1% 6,223 114.2% 606 132.7% 5,777 283 203 87 3Q 2023 3Q 2024 Net Profit margin 9M 2023 9M 2024 FY 2023 9M 2024 Net profit recorded a
Slide 17: Strong Cash Flow Conversion
Strong Cash Flow Conversion Capex (SAR mn) Free Cash Flow1 (SAR mn) 87.0% 87.1% 38.3% 58.2% 2,955 2,006 1,824 1,268 9M 2023 9M 2024 9M 2023 % Cash Conversion2 9M 2024 The Group’s CAPEX decreased 38.3% y-o-y, mainly reflecting the completion of The Group’s free cash flow increased by 58.2% y-o-y main
Slide 18: Net Debt Evolution
Net Debt Evolution 9M 2024 Net Debt Bridge1 (SAR mn) The balance of cash and cash equivalents as of 30 September 2024 amounted to SAR 883 mn. 1Net debt equals Interest-bearing loans and borrowings, less cash excluding lease liability. *The total amount of SAR 721mn includes SAR 529mn for interest ex
Slide 19: FY 2024 Guidance
FY 2024 Guidance Management anticipates that FY 2024 EBITDA will reach the upper end of the previously disclosed guidance range of SAR 2.89-3.04bn. This performance reflects the successful execution of our strategic initiatives and our ability to capture additional opportunities in the market, posit
Slide 20: Q&A
Q&A
Slide 21: Important Notice
Important Notice 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 p