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UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited

Eurasia Drilling Company Limited · Feb 25, 2013 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 1
    EURASIA DRILLING COMPANY LTD UBS Russia & CIS Conference New York City February 25-26, 2013
  2. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 2
    Agenda EDC Overview Overview Outlook Investment Case Positioning Fin. Highlights Summary Outlook Investment case Performance and positioning Financial Highlights Summary 3
  3. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 3
    EDC at a glance EDC Overview THE LARGEST DRILLING COMPANY IN RUSSIA AND THE CIS Outlook 2012 Change Investment Case Positioning Revenues US 3.2 billion* +16% Fin. Highlights EBITDA margin 24.3%* +2.6 pp Summary Market Share…
  4. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 4
    Geographic presence EDC Overview Outlook Investment Case Positioning Fin. Highlights Summary 5
  5. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 5
    2013 Outlook EDC Overview Outlook Summary 2013 financial guidance Investment Case Total revenues for 2013 are expected to be in excess of US 3.6 billion. Positioning EBITDA margin should be approximately 24.8% for the full year of…
  6. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 6
    2013 Outlook continued EDC Overview Offshore Drilling The SATURN j/u continues drilling for Petronas under a new 3-year contract effective Outlook Investment Case January 9, 2013 in Turkmen waters of the Caspian Sea.…
  7. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 7
    EDC Consistent Profitable Growth EDC Overview Leadership - market leading position in innovation and growth Outlook Investment Case Secure fundamentals stable core market environment less volatile than other major Positioning…
  8. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 8
    Russian market EDC Overview Russias onshore market by meters drilled (mln) Drilling volumes in Russia Outlook 30 grew at more than 8% Western Siberia Investment Case Volga-Urals between 2006-2011 25 Eastern Siberia Positioning…
  9. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 9
    Drilling rig market in Russia EDC Overview Outlook Industry Issues The Russian Drilling Fleet Investment Case Positioning Many existing onshore rigs approaching end of 25 EDC Total Russian Fleet year useful life Fin. Highlights…
  10. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 10
    Drilling depth is increasing EDC Overview Average Depth (MD) of Wells Drilled by EDC Outlook Investment Case 2,600 Positioning 2,650 Fin. Highlights 2,700 Average Measured Well Depth (meters) Summary 2,750 2,800…
  11. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 11
    Greater focus on more complex drilling EDC Overview Outlook Russian onshore drilling US billions Investment Case 20 18 Positioning 16 Fin. Highlights 14 Summary 12 10 8 6 4 2 0 2005 2006 2007 2008 2009 2010 2011 2012F…
  12. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 12
    Drilling impact EDC Overview Russian Brownfield production, kbpd Russian Brownfield production Outlook During 2012 the output growth from Greenfields slightly Investment Case 9,400 Russian brownfield decelerated, which makes it more…
  13. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 13
    Offshore developments Caspian Sea EDC Overview Outlook Investment Case Approx 3% of world oil reserves Positioning Fin. Highlights Summary LUKOIL discoveries in Russian sector Numerous blocks in exploration in Kazakh waters…
  14. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 14
    Offshore Caspian Sea Quality Assets in a Tight Market EDC Overview Outlook Current EDC Assets Investment Case Positioning ASTRA Fin. Highlights BMC-150-H jack-up rig Summary 150 ft. (45 m) water depth 15,000 ft. (4,570 m)…
  15. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 15
    Operating performance EDC Overview EDC drilling volume performance Horizontal drilling volumes Outlook 7,000 1,000 Investment Case Positioning 6,050 900 879 862 LUKoil-Bureniye 6,000 Fin. Highlights 800 Drilled Meters…
  16. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 16
    Focus on Rig Utilisation EDC Overview Outlook Drilling fleet utilisation (excludes Sidetrack rigs) Support organisation optimisation Investment Case Divested transport & well 100% Positioning services Fin. Highlights 90% Support…
  17. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 17
    Market share (by meters drilled) EDC Overview 2012 Outlook EDC market share for 2012 amounted to 29.5% Investment Case The Russian market grew 10% in 2012 in drilling volume terms vs. 2011 Positioning EDC 29% Fin. Highlights All…
  18. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 18
    Customer diversification EDC Overview Outlook In 2012 Lukoil increased drilling volumes by 30% vs. 2011 Investment Case Rosnefts drilling volumes went up by 60% vs. 2011 Positioning Schlumberger deal has increased importance of…
  19. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 19
    EDC capital expenditures EDC Overview Outlook Significant CAPEX program focused on evolving fleet to meet the most Investment Case demanding and complex customer needs. Positioning Fin. Highlights CAPEX (US mln) Starting from…
  20. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 20
    Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs as of Dec 31, 2011) EDC rig fleet by age category Outlook Investment Case Positioning 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 0 28% 34%…
  21. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 21
    Key financial highlights 2007 2008 2009 2010 2011 1H-11 1H-12 EDC Overview (US thousands) Audited Audited Audited Audited Audited Unaudited Unaudited Outlook Revenue 1,492,189 2,101,779 1,382,203 1,812,156 2,752,417 1,265,282…
  22. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 22
    Debt profile EDC Overview Debt structure To finance acquisitions the Outlook Company raised the following debt Investment Case 1,000 late in 2010 and during 1H-11: Positioning 800 753 670 3-years ruble denominated Fin.…
  23. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 23
    3Q-12 Results EDC Overview Financial update* Operations update Outlook Investment Case Top line revenue up 17% to US 2,402 Drilling output for 9M-12 was 4.583 mln metres, 25% Positioning million (9M-12: US 2,042 million); above 9M-11…
  24. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 24
    Key strategic focus- Scorecard EDC Overview Acquire in-house and/or independent drilling Outlook SLB drilling assets add 3-4% market share on contractors Increase market a full-year basis Investment Case Invest in fleet expansion…
  25. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 25
    Q&A EDC Overview Outlook Investment Case Positioning Fin. Highlights Summary 26
  26. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 26
    Appendix: IR contacts EDC Overview Outlook Investor Relations key contacts Investment Case Richard Anderson Taleh Aleskerov Positioning Chief Financial Officer Senior Vice President, Finance Fin. Highlights Tel: +1-281-778-0621…
  27. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 27
    Appendix: Russian oil industry EDC Overview Expanding prospects Outlook Russian economy highly dependent upon oil and gas industry (ca. 50% State revenues) Investment Case Positioning Sustaining oil production requires more…
  28. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 28
    Appendix: 2008/09 Case Study Russian market and RoW EDC Overview Russian drilling market characteristics result in less volatility Outlook Investment Case EDC Experience North America Experience Positioning Volumes 2009 metres…
  29. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 29
    Appendix: Incremental Growth Opportunities EDC Overview Outlook Investment Case Bolt-on acquisitions in core Positioning markets Fin. Highlights Tight oil opportunity (Bazhenov) Summary Western Siberia up to 60- 140bn…
  30. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 30
    Appendix: Income Statement EDC Overview 2007 2008 2009 2010 2011 1H 2011 1H 2012 Outlook in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Investment Case Av. exchange rate RUB/USD 25.6 24.9 31.7 30.4 29.4…
  31. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 31
    Appendix: Balance Sheet EDC Overview 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 30-Jun-12 Outlook in US thousands Audited Audited Audited Audited Audited Unaudited ASSETS Investment Case Current Assets Positioning Cash…
  32. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 32
    Appendix: Cash Flow Statement EDC Overview Outlook 2007 2008 2009 2010 2011 1H 2011 1H 2012 in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Investment Case Positioning Net Income 168,544 220,933 165,490…
  33. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 33
  34. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 34

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