EURASIA DRILLING COMPANY LTD UBS Russia and CIS 1-1 Conference New York, USA 3-4 March, 2014 1
Agenda 1. EDC at a glance 2. 2014 Outlook 3. Market 4. Operations 5. Financial performance 3
EDC at a glance The largest drilling company in Russia and the CIS 2013 Change Revenues* US 3.5 billion +7.5% EBITDA margin* 26.7% +2.3 pp Operating Statistics 6,263,885 meters drilled +3.5% 1,296,143 horizontal meters drilled…
History constant steady growth Meters drilled, thsd m Schlumberger (SLB) asset transaction Ordered MERCURY and strategic alliance in Russia and CIS jack-up from Lamprell 18% CAGR (19 drilling, 23 sidetrack & 34 W/O rigs) (Q4 2014…
Geographic presence 2013 EDC onshore drilling results Meters Wells Horizontal Region drilled, drilled, meters, thsd m units thsd m Western & Eastern 5,411 1,636 1,087 Siberia Volga-Urals 472 224 126 Timan-Pechora 353 126 78…
Agenda 1. EDC at a glance 2. 2014 Outlook 3. Market 4. Operations 5. Financial performance 7
2014 Outlook Summary 2014 financial guidance Positive trends in the drilling activity will continue in 2014. Horizontal metres drilled is expected to increase further though not at the very high 2012 growth rate. EDC expects total…
2014 Outlook continued Offshore Drilling Services 2014 Outlook The SATURN j/u continues operations in the Turkmen sector of the Caspian Sea for Petronas Carigali Sdn Bhd under a new 3-year contract effective January 2013. The ASTRA…
9M 2013 Results Summary Financial update Operations update Top line revenue up 9.5% to US 2,631 million Drilling output was 4.732 mln m, + 3.3% vs 9M12; (9M12: US 2,402 million)*; Horizontal metres drilled were 894 th m, +35.3% vs…
Agenda 1. EDC at a glance 2. 2014 Outlook 3. Market 4. Operations 5. Financial performance 11
Russias oil industry Russian oil production Russian oil production by region(1) Oil prices backdrop has 25 4% been supportive for 22 23 5% 5% 5% 4% 5% 20 5% 5% 6% 6% 5% 5% 17 19 5% 8% 7% drilling activity over 14 15 15 21% 21% 12…
Drilling market dynamics Onshore well construction & servicing market, bn Drilling volumes in Russia, mn m CAGR +11% Russian drilling industry CAGR+7% 22.4 has demonstrated 20.9 25.9 19.2 22.6 24.2 increased drilling 16.5 17.2…
Market structure Russias onshore drilling by footage, 1H 2013 EDC market share dynamics 29% 29% All others 25% 26% EDC 22% 29% 17% Surgut NG 24% 2005 : first year 2007:IPO 2011 2012 2013 of independent operations…
Agenda 1. EDC at a glance 2. 2014 Outlook 3. Market 4. Operations 5. Financial performance 15
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 EDC drilling volume…
Customer portfolio Well balanced customer mix dominated by oil majors/long-term contracts 2007 EDC customers 2013 EDC customers Others TNK-BP (1)1% Rosneft 1% 8% Rosneft 24% Others 6% Gazprom Neft 15% Gazprom Neft 12%…
Rig fleet EDC is to maintain a competitive drilling fleet EDC drilling rig fleet EDC rig fleet by age 59% EDC fleet is younger 34% than Russias average 33% 24% 15% 10% 12% 6% 4%…
Offshore assets Quality assets in a tight market Caspian Sea jack-up market EDC assets Approx. 3% of world oil reserves ASTRA 3 jack-up rigs currently in operation BMC-150-H jack-up rig Barriers to entry: time and costs to deliver…
Capital expenditures Capex program focused on evolving fleet to meet the most demanding and complex customer needs apex, mn EDCs fleet modernisation programme: Capex/ 21% 16% 8% 16% 14% 19% 11% revenues 1. Refurbishment of Medium…
Agenda 1. EDC at a glance 2. 2014 Outlook 3. Market 4. Operations 5. Financial performance 21
Debt profile EDC retains conservative debt profile Leverage dynamics Debt repayments as of 30.06.2013, mn 1,219 753 700 527 753 404 395 244 211 145 63 41 6 2010 2011 2012 30-Jun-2013 41455 1-Jul-13 to 1-Jul-14 to 2015…
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 Invest…
Appendix 25
Balance sheet 31.12.2010 31.12.2011 31.12.2012 30.06.2013 thsd Audited Audited Audited Unaudited Assets Current assets Cash and cash equivalents 629,466 509,781 305,333 691,951 Accounts receivable, net 252,749 378,523 528,813…
Income statement Income statement 2010 2011 2012 1H 2012 1H 2013 thsd Audited Audited Audited Unaudited Unaudited Drilling and related services 1,808,905 2,734,444 3,222,830 1,569,045 1,682,545 Other sales and services 13,275 32,305…
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