Skip to main contentDAHLMAN ROSE AND CO ULTIMATE OIL SERVICES AND EP CONFERENCE – Eurasia Drilling Company Limited Investor Presentation | Shale Experts
EURASIA DRILLING COMPANY LTD Dahlman Rose & Co. Ultimate Oil Services and E&P Conference New York City December 3-4, 2012
Agenda EDC Overview Overview Outlook Outlook Investment case Investment Case Performance and positioning Financial Highlights Positioning Q&A Fin. Highlights Summary Q&A 3
EDC at a glance EDC Overview THE LARGEST DRILLING COMPANY IN RUSSIA AND THE CIS 1H 2012 Growth Revenues US 1,564 million 23.6% EBITDA US 373 million 39.8% Outlook Net Income US 187 million 24.3% EBITDA margin 23.9% 2.8pp…
Geographic presence EDC Overview Outlook Investment Case Positioning Fin. Highlights Summary Q&A 5
Outlook EDC Overview 2012 full year guidance October update: Revenues: US 3.175 bln EBITDA margin: at least 24.3% Outlook Metres drilled: over 5.8 mln metres Horizontal meters drilled: c. 900 th. metres CAPEX: US 550-600…
3Q-12 Results EDC Overview Financial update Operations update Top line revenue up 17% to US 2,402 Drilling output for 9M-12 was 4.583 mln metres, 25% million (9M-12: US 2,042 million); above 9M-11 (3.669 mln metres); EBITDA margin…
Russian market EDC Overview Russias onshore market by meters drilled (mln) Drilling volumes in Russia 30 grew at more than 8% Western Siberia Volga-Urals between 2006-2011 25 Eastern Siberia Timan-Pechora As per REnergyCo, demand…
Russian oil industry EDC Overview Russian oil production composition (mln bpd) Crude oil production from Brownfields 12 currently accounts for 85-90% of Others Volga-Urals Western Siberia Eastern Siberia Timan-Pechora Russias total…
Russian drilling rig market EDC Overview Industry Issues The Russian Drilling Fleet Many existing onshore rigs approaching end of 25 EDC Total Russian Fleet year useful life Fewer rigs capable of drilling deeper and more Average…
Drilling complexity is increasing EDC Overview Average Depth (MD) of Wells Drilled by EDC Horizontal Drilling (th. meters) 2,600 1,000 2,650 900 879 2,700 800 Average Measured Well Depth (meters) Outlook 2,750 700 660…
Drilling impact EDC Overview Russian Brownfield production, kbpd Russian Brownfield production During 9M-12 the output growth from Greenfields began 9,400 Russian brownfield to slightly decelerate, which makes it more challenging…
Russian vs. Western markets EDC Overview Russia vs. North American drilling activity 2,500 2,000 Outlook 1,500 1,000 Investment Case 500 0 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05…
Caspian Sea jack-up market EDC Overview STATOIL Demand for jack-ups growing in all Exploration Caspian sectors served by EDC: Russia NCOC (Exxon) In the Russian sector, Lukoil has made Exploration a number of discoveries and has…
Operating performance EDC Overview EDC drilling volume performance 6,000 5,800 LUKoil-Bureniye 5,000 EDC Actual Drilled Meters (thousands) 5,109* Outlook 4,777 EDC Forecasts 4,000 4,041 4,103 3,753 3,000 3,269…
Market share (by meters drilled) EDC Overview 2007 (at IPO) 1H 2011 1H 2012 EDC EDC 22% 25% EDC Outlook All others 29% All others All others 40% 31% 27% SGC 4% * SSK SSK 8% SSK 9% SurgutNG SurgutNG 24% 7% SurgutNG 23%…
Customer diversification EDC Overview Spun out of LUKOIL in 2004 LUKOIL…
EDC capital expenditures EDC Overview Significant CAPEX program focused on evolving fleet to meet the most demanding and complex customer needs. CAPEX (US mln) Outlook 550-600mm Drilling & 600 sidetracking Actual Rig fleet…
Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs as of Dec 31, 2011) EDC rig fleet by age category 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 0 28% 34% 1,000 Outlook 2,000 Max. Depth in…
Debt profile EDC Overview Debt structure To finance acquisitions the Company raised the following debt 1,000 late in 2010 and during 1H-11: 800 753 670 3-years ruble denominated 600 loan from Alfa bank at 8.4% for Outlook 404…
Key strategic focus- Scorecard EDC Overview Acquire in-house and/or independent drilling SLB drilling assets add 3-4% market share on contractors a full-year basis Increase market Invest in fleet expansion and upgrades By 2012,…
Q&A EDC Overview Outlook Investment Strategic Focus Case Investment Positioning Case Fin. Positioning Highlights Summary Q&A 23
Appendix: Worlds largest drillers EDC Overview --550-- Nabors Industries LTD M --5.4-- Helmrich & Payne, Inc R Outlook A I --364-- Precision Drilling Corp --4.8-- Eurasia Drilling Company Ltd R G --350-- Patterson UTI…
Appendix: Income Statement EDC Overview 2007 2008 2009 2010 2011 1H 2011 1H 2012 in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Av. exchange rate RUB/USD 25.6 24.9 31.7 30.4 29.4 28.6 30.6 Total Revenue…
Appendix: Balance Sheet EDC Overview 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 30-Jun-12 in US thousands Audited Audited Audited Audited Audited Unaudited ASSETS Current Assets Cash 343,089 279,430 433,724 629,466 509,781…
Appendix: Cash Flow Statement EDC Overview 2007 2008 2009 2010 2011 1H 2011 1H 2012 in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Net Income 168,544 220,933 165,490 207,353 277,237 150,601 187,267…
Appendix: IR contacts EDC Overview Investor Relations key contacts Richard Anderson Kim Kruschwitz Chief Financial Officer Vice President, Marketing and Investor Relations Tel: +1-281-778-0621 Tel: +44 (0) 207 717 9707 Outlook…
Loading...
