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UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited

Eurasia Drilling Company Limited · Feb 28, 2012 · 26 slides

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Slides

  1. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 1
    EURASIA DRILLING COMPANY LTD UBS Russia & CIS Conference New York February 28-29, 2012
  2. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 2
    Agenda EDC Overview Overview Outlook Outlook Strategic Focus Strategic Focus Investment case Performance and positioning Investment Case Q&A Positioning Q&A 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 2011 Growth Revenue US 2.7 billion* +50% vs. 2010 Outlook Operating statistics: 4,777,433 meters drilled +16% vs. 2010 879,090 horizontal meters…
  4. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 4
    Geographic presence EDC Overview Head Office Regional/Branch Office Support Base Operational Areas Outlook TIMAN-PECHORA Usinsk EASTERN SIBERIA Kogalym Strategic Focus Moscow WESTERN SIBERIA VOLGA-URALS…
  5. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 5
    2012 Outlook- Onshore operations EDC Overview Drilling volume forecast is approx. 5.5 million Horizontal drilling volumes are expected to meters for 2012, implying growth of about 15% increase further in line with total meters…
  6. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 6
    2012 Outlook- Offshore operations EDC Overview In February 2011, the Company acquired the Trident 20 jack up rig from Transocean which is currently contracted to Petronas Carigali Sdn Bhd in the Turkmen waters of the Caspian Sea.…
  7. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 7
    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…
  8. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 8
    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 Exploration made a number of discoveries and CMOC (Shell)…
  9. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 9
    Russian market EDC Overview Russias onshore market by meters drilled (mln) Drilling volumes in Russia 24 grew at more than 8% Eastern Siberia 22 Timan-Pechora between 2006-2010 Volga-Urals 20 Western Siberia As per REnergyCo,…
  10. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 10
    Russian oil industry EDC Overview Russias crude oil production (bpd) Crude oil production from 12 60 Brownfields accounts for 85- 90% of Russias total output, 10 50 Production from Greenfields but has been declining since 8 40…
  11. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 11
    Drilling volumes in context EDC Overview Drilling volumes growth in Russia and EDC (th. meters) EDC has established itself as 3,000 the premier drilling company +18% 2,500 +19% in Russia +22% 2,000 Historically EDCs drilling…
  12. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 12
    Drilling complexity is increasing EDC Overview Average Depth (MD) of Wells Drilled by EDC Horizontal Drilling 879 2,600 2,650 Outlook 2,700 Meters drilled ('000) Average Measured Well Depth (meters) 2,750 2,800…
  13. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 13
    Operating performance EDC Overview EDC drilling volume performance 6,000 LUKoil-Bureniye 5,500 5,000 EDC Actual Drilled Meters (thousands) Outlook 4,777 EDC Forecasts 4,000 4,041 4,103 3,753 3,000 3,269 Strategic…
  14. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 14
    Rig fleet and CAPEX EDC Overview EDC capital expenditures (US mln) EDC rig fleet (drilling & sidetrack rigs) 400 Actual about 350m 350 327 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 2011E 320 0 300 284 1,000…
  15. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 15
    Market share (by meters drilled) EDC Overview 2007 (at IPO) 2010 2011 EDC EDC EDC 22% 24% 25% Outlook All others All others All others 40% 30% 32% SGK 4% * SSK SSK SSK 8% 8% 8% SurgutNG SurgutNG SurgutNG WFT WFT 26%…
  16. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 16
    Customer diversification (by meters drilled) EDC Overview 2007 (at IPO) 2010 2011 Other 1% 2% Other 1% 3% Other 6% 8% 11% 21% Outlook 15% 29% 15% Strategic Focus 76% 57% 55% In 2007 the share of non-Lukoil In 2010…
  17. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 17
    Key financial highlights EDC Overview 2007 2008 2009 2010 1H 2010 1H 2011 (US thousands) Audited Audited Audited Audited Unaudited Unaudited Revenue 1,492,189 2,101,779 1,382,203 1,812,156 862,013 1,265,282 % growth 37.2% 40.9%…
  18. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 18
    Debt profile EDC Overview Debt structure To finance acquisitions the Company raised the following 1,000 899 debt late in 2010 and during 800 1H-11: 3-years ruble denominated US (million) 600 Outlook 404 loan from Alfa bank…
  19. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 19
    Q&A EDC Overview Outlook Strategic Focus Investment Case Positioning Q&A 20
  20. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 20
    Appendix: IR contacts & Calendar EDC Overview 2012 upcoming events March 13-14 JP Morgan Russia Corporate Access Day, London April 2011 Results Outlook May 1Q12 Results May Management non-deal road show Strategic Focus…
  21. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 21
    Appendix: Worlds largest drillers EDC Overview --550-- Nabors Industries LTD M --6.7-- Helmrich & Payne, Inc R Outlook A I --364-- Precision Drilling Corp --5.8-- Nabors Industries LTD R G --350-- Patterson UTI Energy, Inc K…
  22. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 22
    Appendix: Market dynamics EDC Overview The Russian oil industry entering a new phase mbd Phase 1 Phase 2 Phase 3 Phase 4 12,000 Collapse of Soviet Well re-activation and Growth stalls Tax reform Union leads to huge fall…
  23. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 23
    Appendix: Income Statement EDC Overview 2007 2008 2009 2010 1H 2010 1H 2011 in US thousands Audited Audited Audited Audited Unaudited Unaudited Av. Exchange Rate RUB/USD 25.6 24.9 31.7 30.4 30.1 28.6 Total Revenue 1,492,189…
  24. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 24
    Appendix: Balance Sheet EDC Overview 2007 2008 2009 2010 30-Jun-11 in US thousands Audited Audited Audited Audited Unaudited ASSETS Current Assets Cash 343,089 279,430 433,724 629,466 533,607 Trade Accounts Receivable, net 230,888…
  25. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 25
    Appendix: Cash Flow Statement EDC Overview 2007 2008 2009 2010 1H 2010 1H 2011 in US thousands Audited Audited Audited Audited Unaudited Unaudited Net Income 168,544 220,933 165,490 207,353 104,810 150,601 Non-cash Adjustments…
  26. UBS RUSSIA AND CIS CONFERENCE – Eurasia Drilling Company Limited – slide 26

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