EURASIA DRILLING COMPANY LTD VTB Capitals Sixth Annual Investment Forum RUSSIA CALLING Moscow October 1, 2014 1
EDC at a glance The largest drilling company in Russia and the CIS 1H 2014 Change Revenues US 1,551 mln -8.5% EDC at a glance EDITDA US 402 mln -8.8% Sustained EBITDA margin 25.9% -0.1pp EBITDA Net Income US 201 mln -7.2%…
Geographic presence EDC at a glance 2014 Outlook Market Operations 261 Land drilling and sidetracking rigs 438 Workover rigs Financial performance 3 Offshore rigs 4
Company milestones Acquired Ordered NEPTUNE Commissioned ASTRA jack- jack-up from NEPTUNE up rig from Lamprell (delivered jack-up LUKOIL Q3 2013) EDC at a glance Acquired OOO Meridian (21 W/O Ordered MERCURY rigs) in Komi…
2014 Outlook Summary 2014 financial guidance Due to the depreciation of the ruble and a significant increase in rig redeployment in early 2014, we expect lower revenues than in 2013; EDC at a 2014FY revenue is expected to be in the…
1H 2014 Results Summary Financial update Operations update Top line revenue was 1,551 mln, Drilling output was 2.763 mln metres, -9.1% vs 1H13; EDC at a 8.5% below 1H13 of 1,695mln; Horizontal metres drilled were 604 thous m, +22.8…
Russias oil industry Russian oil production Russian oil production by region(1) Oil prices backdrop has 20 22 22 22 23 4% 5% 5% 5% 4% 5% been supportive for 19 5% 5% 6% 6% 5% 5% EDC at a 15 15 17 5% 8% 8% drilling activity over…
Drilling market dynamics Onshore well construction & servicing market, bn Drilling volumes in Russia, mn m CAGR +8% CAGR+3% 19.4 Russian drilling industry 19.1 22.6 22.6 23.0 24.1 EDC at a glance 16.5 17.2 16.8 17.6 21.1 has…
Market structure Russias onshore drilling by footage, 1H 2014 EDC market share dynamics EDC at a 29% 29% glance 28% All others 25% EDC 26% 22% 28% 17% 2014 Outlook Surgut NG 21% 2005 : first 2007:IPO 2011 2012 2013…
Operating performance Drilling volumes have shown strong growth over the past years due to winning new customers and increased existing customer activity, as well as a series of successful acquisitions. 1H14 volumes decrease driven by…
Customer portfolio 2007 EDC customers 1H 2014 EDC customers Others Others 8% Rosneft 1% Rosneft EDC at a 8% 11% glance Gazprom Neft 15% Gazprom LUKOIL 63% Neft 18% 2014 Outlook LUKOIL 76% Market Well Mostly long…
Rig fleet EDC drilling rig fleet EDC rig fleet by age EDC fleet is younger than Russias average EDC at a 24% glance 32% 37% Russia(3) EDC 59% 10% 3% 5% 4% 18% 2014 8%…
Offshore assets Quality EDC assets assets in ASTRA Caspian Sea jack-up market tight market BMC-150-H jack-up rig Approx. 3% of world oil reserves 150 ft. (45 m) water depth 3 jack-up rigs currently in operation EDC at a 15,000…
Capital expenditures apex, mn EDCs fleet modernisation programme: 21% 16% 8% 16% 14% 19% 15% 14% 1. Refurbishment of Medium Pad/Cluster rigs EDC at a glance Capex/ Workhorses of West Siberia far revenues into the future Focus…
Debt profile Leverage dynamics Debt structure as of 30.06.2014 1,114 1,140 Local banks / bonds / other 21% 66% 13% 753 700 EDC at a 541 glance 404 Unsecured / secured 80% 20% 284 263 244 395 337 182 Fixed / floating rate 80%…
Key strategic focus Maintain leadership position as the largest provider of onshore drilling services Organic growth and in Russia and operator of the largest jack-up fleet in key sectors of the Caspian Sea selective acquisitions…
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