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WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited

Eurasia Drilling Company Limited · Nov 28, 2012 · 27 slides

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Slides

  1. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 1
    EURASIA DRILLING COMPANY LTD Woods Winter in Prague Emerging Europe Conference November 28-30, 2012
  2. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 2
    Agenda EDC Overview Overview Summary Summary Investment case Investment Case Performance and positioning Financial Highlights Positioning Q&A Fin. Highlights Summary Q&A 3
  3. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 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% Summary Net Income US 187 million 24.3% EBITDA margin 23.9% 2.8pp…
  4. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 4
    Geographic presence EDC Overview Summary Investment Case Positioning Fin. Highlights Summary Q&A 5
  5. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 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…
  6. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 6
    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…
  7. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 7
    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…
  8. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 8
    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…
  9. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 9
    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…
  10. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 10
    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) Summary 2,750 700 660…
  11. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 11
    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…
  12. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 12
    Russian vs. Western markets EDC Overview Russia vs. North American drilling activity 2,500 2,000 Summary 1,500 1,000 Investment Case 500 0 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05…
  13. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 13
    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…
  14. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 14
    Operating performance EDC Overview EDC drilling volume performance 6,000 5,800 LUKoil-Bureniye 5,000 EDC Actual Drilled Meters (thousands) 5,109* Summary Outlook 4,777 EDC Forecasts 4,000 4,041 4,103 3,753 3,000…
  15. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 15
    Market share (by meters drilled) EDC Overview 2007 (at IPO) 1H 2011 1H 2012 EDC EDC 22% 25% EDC Summary All others 29% All others All others 40% 31% 27% SGC 4% * SSK SSK 8% SSK 9% SurgutNG SurgutNG 24% 7% SurgutNG 23%…
  16. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 16
    Customer diversification (by meters drilled) EDC Overview 2007 (at IPO) 1H 2011 1H 2012 Other 1% 3% 1.5% Other 7.5% 8% 20% Other 4% 27% Summary 15% 8% 19% Investment Case 76% 54% 56% In 2007 the share of non-Lukoil…
  17. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 17
    Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs) EDC capital expenditures (US mln) 550-600mm 600 Actual 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 500 2012F 0 1,000 400 400 Summary…
  18. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 18
    Key strategic focus 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, roughly one in…
  19. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 19
    Key financial highlights 2007 2008 2009 2010 2011 1H-11 1H-12 EDC Overview (US thousands) Audited Audited Audited Audited Audited Unaudited Unaudited Revenue 1,492,189 2,101,779 1,382,203 1,812,156 2,752,417 1,265,282 1,564,185 %…
  20. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 20
    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 Summary 404…
  21. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 21
    Q&A EDC Overview Summary Outlook Investment Strategic Focus Case Investment Positioning Case Fin. Positioning Highlights Summary Q&A 22
  22. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 22
    Appendix: IR contacts & Calendar EDC Overview 2012 upcoming events December 3-4 Dahlman Rose & Co 2nd Annual Ultimate Oil Services & Drilling Conf., NYC Summary Investor Relations key contacts Richard Anderson Kim…
  23. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 23
    Appendix: Worlds largest drillers EDC Overview --550-- Nabors Industries LTD M --5.3-- Helmrich & Payne, Inc R Summary A I --364-- Precision Drilling Corp --4.5-- Eurasia Drilling Company Ltd R G --350-- Patterson UTI…
  24. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 24
    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…
  25. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 25
    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…
  26. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 26
    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…
  27. WOODS WINTER IN PRAGUE EMERGING EUROPE CONFERENCE – Eurasia Drilling Company Limited – slide 27

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