EURASIA DRILLING COMPANY LTD Goldman Sachs Global Natural Resources Conference London September 12-13, 2012
Agenda EDC Overview Overview Summary Summary 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% Summary Net Income US 187 million 24.3% EBITDA margin 23.9% 2.8pp…
Geographic presence EDC Overview Head Office Regional/Branch Office Support Base Operational Areas Summary TIMAN-PECHORA Usinsk EASTERN SIBERIA Kogalym Investment Case Moscow WESTERN SIBERIA Tuymen VOLGA-URALS…
Summary financial guidance EDC Overview Our expected total drilling volume for 2012 is at least 5.6 million meters Pricing in ruble terms has increased by 5-7% on average Summary Horizontal meters drilled are expected to increase…
1H-12 Results EDC Overview Financial update Operations update Top line revenue up 24% to US 1,564 Drilling output for 1H-12 was 2.871 mln meters, 23% million (1H-11: US 1,265 million); above 1H-11 (2.325 mln meters); EBITDA margin…
Russian market EDC Overview Russias onshore market by meters drilled (mln) Drilling volumes in Russia 26 grew at more than 8% Others 24 Volga-Urals between 2006-2011 22 Western Siberia Eastern Siberia As per REnergyCo, demand 20…
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…
Drilling impact EDC Overview Russian brownfield production, kbpd Russian Brownfield production 1H-12 Update In 1H 2012 the output growth from Greenfields began to 9,400 Russian brownfield slightly decelerate, which makes it more…
Drilling complexity is increasing EDC Overview Average Depth (MD) of Wells Drilled by EDC Horizontal Drilling (th. meters) 1,000 2,600 900 879 2,650 2,700 800 Summary Average Measured Well Depth (meters) 2,750 700…
Caspian Sea jack-up market EDC Overview STATOIL Demand for jack-ups growing in all Exploration Caspian sectors served by EDC: NCOC (Exxon) In the Russian sector, Lukoil has made Exploration a number of discoveries and has several…
Operating performance EDC Overview EDC drilling volume performance 6,000 LUKoil-Bureniye 5,600 5,000 EDC Actual Drilled Meters (thousands) Summary Outlook 4,777 EDC Forecasts 4,000 4,041 4,103 4,065 * 3,753 3,000…
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%…
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…
Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs) EDC capital expenditures (US mln) about 500mm 500 Actual 450 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 2012F 400 0 400 1,000 350 320 327…
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…
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…
Q&A EDC Overview Summary Outlook Investment Strategic Focus Case Investment Positioning Case Fin. Positioning Highlights Summary Q&A 20
Appendix: IR contacts & Calendar EDC Overview 2012 upcoming events September 10-11 Sberbank/Troika Dialog Russia: The Inside Track 1-1 Conf., London September 12-13 Goldman Sachs Global Natural Resources Conference, London Summary…
Appendix: Worlds largest drillers EDC Overview --550-- Nabors Industries LTD M --4.7-- Helmrich & Payne, Inc R Summary A I --364-- Precision Drilling Corp --4.3-- 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…
Loading...
