Anton Oilfield Services Group · HKEX:3337
Anton Oilfield Services — FY2011 Earnings Presentation
26 slides from Anton Oilfield Services's earnings presentation, Mar 26, 2012
Slide 1: Anton Oilfield Services Group 2011 Annual Results
安東油田服務集團 ANTON OILFIELD SERVICES GROUP (HKEx: 3337) 2011 ANNUAL RESULTS 26 March 2012
Slide 2: Disclaimer
DISCLAIMER These materials have been prepared by Anton Oilfield Services Group (the “Company”, together with its subsidiaries, the “Group”) and have not been independently verified. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairnes
Slide 3: Agenda
AGENDA • 2011 RESULTS HIGHLIGHTS • OPERATING & FINANCIAL REVIEW • OUTLOOK • Q&A We succeed by helping others to succeed 3
Slide 4: 2011 Results Highlights
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Slide 5: 2011 Results Highlights
2011 RESULTS HIGHLIGHTS Profit attributable to Revenue Operating Profit equity holders of the Company (RMB Million) (RMB Million) (RMB Million) Strong business development in 2011 with revenue reaching RMB1.26 billion, up 32.4% y-o-y Operating profit totaled RMB174.9 million, up 20.3% y-o-y No
Slide 6: 2011 Achievements
2011 ACHIEVEMENTS Steady Growth Rapid growth in oil and gas field development technical services of Natural Gas A strong characteristic in natural gas development in China Business Customized integrated technical services for Chinese investors boosted growth Rapid Growth of Overseas Middle E
Slide 7: Operating & Financial Review
OPERATING & FINANCIAL REVIEW
Slide 8: Market Distribution
MARKET DISTRIBUTION Revenue by Geography Revenue Breakdown by Geography (RMB Million) 2011 2010 Overseas Overseas Market Market 22.8% 16.8% Domestic Market Domestic 77.2% Market 83.2% Steady domestic market growth with strong characteristics in natural gas development, covering conventional gas, t
Slide 9: Core Business in Conjunction with a Supplementary Business
CORE BUSINESS IN CONJUNCTION WITH A SUPPLEMENTARY BUSINESS Revenue Revenue as % of Total Revenue EBITDA Margin (RMB Million) 1,087.6 86.4% 80.6% 40.9% 38.1% 766.7 32.3% 23.5% 184.0 19.4% 171.3 13.6% Oil and Gas Development Tubular Services Oil and Gas Development Tubular Services Oil and Gas Develop
Slide 10: Three Best-Performing Services
THREE BEST-PERFORMING SERVICES Down-hole Revenue (RMB Million) operation cluster % to Revenue Multistage • Leading position cemented in the tight gas market fracking • Applied in the first shale gas horizontal well in China 21.6% 23.3% services Down-hole operation cluster Coiled tubing • Widely appl
Slide 11: Year of Talents
YEAR OF TALENTS Number of employees under contract: 1,262, up 21.6% Adhered to the philosophy of ‘Talents First’ in 2011 New recruitment of 191 young talents from campuses and 183 talents from society Non-core staff were converted to labor outsourcing 90.3% of the Group’s employees were te
Slide 12: Cost Analysis
COST ANALYSIS Cost Structure Analysis 2011 2010 (% to Revenue) Operating Costs % to revenue Materials and Services 45.4% 41.6% Staff Costs 10.8% 13.0% Operating Lease Expenses 1.0% 1.3% Depreciation and Amortization 4.7% 5.3% Sales Tax and Surcharges 2.2% 2.0% Others: Other SG&A expenses 17.9% 19.6%
Slide 13: Working Capital Management
WORKING CAPITAL MANAGEMENT 2011 2010 Change Trade receivable turnover days 178 195 -17 days Inventory turnover days 131 161 -30 days Trade payable turnover days 102 97 +5 days (RMB Million) 2011 2010 Change Trade and notes receivables 671.0 672.0 -0.2% Trade and notes payables 257.8 218.4 +18.0% Inv
Slide 14: 2011 Capex
2011 CAPEX Items 2011 2010 (RMB Million) (RMB Million) Investments in fixed assets 158.5 89.5 Investments in intangible assets 36.1 39.5 Payment for equity investments 4.0 8.5 of prior years Total 198.6 137.5 Use of proceeds： • Newly established 2 directional well operation services; 10 directional
Slide 15: Outlook
OUTLOOK
Slide 16: 2012 Strategic Objectives
2012 STRATEGIC OBJECTIVES Market objectives: adhere to natural gas strategies in the domestic market and the “follow up” strategy in the overseas market; continue to increase the Group's market share in the natural gas sector and revenue contribution from the overseas markets Product objectives:
Slide 17: Market Opportunities
MARKET OPPORTUNITIES CHINA Market: entering the golden OVERSEAS Markets: China investors age of natural gas development increasing their investments abroad; their projects entering the development phase Songliao Basin Central Asia Erdos Basin Tarim Basin Bohai Basin Middle East America Africa Sichua
Slide 18: Growth Engines
GROWTH ENGINES Tremendous Market Opportunities Market Demand for the Group’s Services • Multistage fracking services Production To provide customized technical services • Coiled tubing services Enhancement • Pressure pumping services • Directional drilling Construction To provide customized technica
Slide 19: Measures to Increase Profitability
MEASURES TO INCREASE PROFITABILITY • Sustain revenue growth; enhance Revenue revenue structure, put more focus on highly credit-worthy clients • Reduce management costs and increase efficiencies through well- defined management responsibilities, Operating Costs optimization of assessment indicators
Slide 20: Measures to Increase Asset Efficiency
MEASURES TO INCREASE ASSET EFFICIENCY • Shorten A/R & inventory Current Assets turnover days • Increase investment in high- return, core assets Long-term Assets • Dispose of non-performing assets • Increase gearing ratio to a healthy level and match Financial Leverage mid/long term funding requireme
Slide 21: The Year 2012
THE YEAR 2012 Corporate Corporate Information Culture Management We succeed by helping others to succeed 21
Slide 22: Q&A
Q&A
Slide 23: Appendix – Balance Sheet
APPENDIX 1 – BALANCE SHEET As at 31 December 2011 (RMB Million) 2011 2010 Property, plant and equipment 538.6 419.5 Land use rights 31.3 25.5 Intangible assets 365.4 345.9 Investment in a jointly controlled entity 4.0 50.2 Deferred income tax assets 17.6 3.0 Inventories 271.4 265.4 Trade and notes r
Slide 24: Appendix – Consolidated Income Statement
APPENDIX 2 – CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2011 (RMB Million) 2011 2010 Revenue 1,258.9 950.7 Other gains, net 2.2 0.6 Operating costs (1,086.2) (805.9) Materials and services costs (571.9) (395.1) Staff costs (135.9) (123.5) Operating lease expenses (12.7) (12.7) Depr
Slide 25: Appendix – Business Cluster Revenue and EBITDA Breakdown
APPENDIX 3 – BUSINESS CLUSTER REVENUE AND EBITDA BREAKDOWN 2011 Revenue Breakdown 2010 Revenue Breakdown 13.6% 19.3% Down-hole Operation 36.2% Down-hole Operation 15.7% 45.3% Well Completion 10.3% Well Completion Drilling Technology Drilling Technology Tubular Services Tubular Services 25.4% 34.2% 2
Slide 26: 2012 – Strive for Improvement and Enhance Performance
2012 – STRIVE FOR IMPROVEMENT AND ENHANCE PERFORMANCE
Anton Oilfield Services Group — FY2011 Earnings Presentation on 6ix