EURASIA DRILLING COMPANY LTD Deutsche Bank CEEMEA 1-1 Conference London January 23-25, 2013
Agenda EDC Overview Overview Outlook Investment Case Positioning Fin. Highlights Summary Outlook Investment case Performance and positioning Financial Highlights Summary 3
EDC at a glance EDC Overview THE LARGEST DRILLING COMPANY IN RUSSIA AND THE CIS Outlook 2012 Change Investment Case Positioning Revenues US 3.2 billion* +16% Fin. Highlights EBITDA margin 24.3%* +2.6 pp Summary Market Share…
Geographic presence EDC Overview Outlook Investment Case Positioning Fin. Highlights Summary 5
2013 Outlook EDC Overview Outlook Summary 2013 financial guidance Investment Case Total revenues for 2013 are expected to be in excess of US 3.6 billion. Positioning EBITDA margin should be approximately 24.8% for the full year of…
2013 Outlook continued EDC Overview Offshore Drilling The SATURN j/u continues drilling for Petronas under a new 3-year contract effective Outlook Investment Case January 9, 2013 in Turkmen waters of the Caspian Sea.…
EDC Consistent Profitable Growth EDC Overview Leadership - market leading position in innovation and growth Outlook Investment Case Secure fundamentals stable core market environment less volatile than other major Positioning…
Russian oil industry EDC Overview Expanding prospects Outlook Russian economy highly dependent upon oil and gas industry (ca. 50% State revenues) Investment Case Positioning Sustaining oil production requires more aggressive…
Russian market EDC Overview Russias onshore market by meters drilled (mln) Drilling volumes in Russia Outlook 30 grew at more than 8% Western Siberia Investment Case Volga-Urals between 2006-2011 25 Eastern Siberia Positioning…
Russian drilling rig market EDC Overview Outlook Industry Issues The Russian Drilling Fleet Investment Case Positioning Many existing onshore rigs approaching end of 25 EDC Total Russian Fleet year useful life Fin. Highlights…
Drilling complexity is increasing EDC Overview Average Depth (MD) of Wells Drilled by EDC Upstream capex per boe Outlook Investment Case 2,600 Positioning /boe 2,650 Fin. Highlights 20.0 2,700 18.0 Average Measured Well Depth…
Drilling impact EDC Overview Russian Brownfield production, kbpd Russian Brownfield production Outlook During 2012 the output growth from Greenfields slightly Investment Case 9,400 Russian brownfield decelerated, which makes it more…
Caspian Sea jack-up market EDC Overview STATOIL Demand for jack-ups growing in all Outlook Exploration Caspian sectors served by EDC: Russia Investment Case NCOC (Exxon) In the Russian sector, Lukoil has made Positioning…
Operating performance EDC Overview EDC drilling volume performance Horizontal drilling volumes Outlook 7,000 1,000 Investment Case Positioning 6,050 900 879 862 LUKoil-Bureniye 6,000 Fin. Highlights 800 Drilled Meters…
Market share (by meters drilled) EDC Overview Outlook 1H 2012 Investment Case Positioning EDC market share for 2012 amounted to 29.5% Fin. Highlights The Russian market grew 10% in 2012 in drilling volume terms vs. 2011 EDC…
Customer diversification EDC Overview Outlook In 2012 Lukoil increased drilling volumes by 30% vs. 2011 Investment Case Rosnefts drilling volumes went up by 60% vs. 2011 Positioning Schlumberger deal has increased importance of…
EDC capital expenditures EDC Overview Outlook Significant CAPEX program focused on evolving fleet to meet the most Investment Case demanding and complex customer needs. Positioning Fin. Highlights CAPEX (US mln) Starting from…
Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs as of Dec 31, 2011) EDC rig fleet by age category Outlook Investment Case Positioning 100-125 T 160-175 T 200-225 T 250-270 T 320-400 T 450 T 0 28% 34%…
Debt profile EDC Overview Debt structure To finance acquisitions the Outlook Company raised the following debt Investment Case 1,000 late in 2010 and during 1H-11: Positioning 800 753 670 3-years ruble denominated Fin.…
3Q-12 Results EDC Overview Financial update Operations update Outlook Investment Case Top line revenue up 17% to US 2,402 Drilling output for 9M-12 was 4.583 mln metres, 25% Positioning million (9M-12: US 2,042 million); above 9M-11…
Key strategic focus- Scorecard EDC Overview Outlook Acquire in-house and/or independent drilling SLB drilling assets add 3-4% market share on contractors a full-year basis Increase market Investment Case Invest in fleet expansion…
Q&A EDC Overview Outlook Investment Case Positioning Fin. Highlights Summary 24
Appendix: IR contacts EDC Overview Outlook Investor Relations key contacts Investment Case Richard Anderson Kim Kruschwitz Positioning Chief Financial Officer Vice President, Marketing and Investor Relations Fin. Highlights Tel:…
Appendix: Income Statement EDC Overview 2007 2008 2009 2010 2011 1H 2011 1H 2012 Outlook in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Investment Case Av. exchange rate RUB/USD 25.6 24.9 31.7 30.4 29.4…
Appendix: Balance Sheet EDC Overview 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 30-Jun-12 Outlook in US thousands Audited Audited Audited Audited Audited Unaudited ASSETS Investment Case Current Assets Positioning Cash…
Appendix: Cash Flow Statement EDC Overview Outlook 2007 2008 2009 2010 2011 1H 2011 1H 2012 in US thousands Audited Audited Audited Audited Audited Unaudited Unaudited Investment Case Positioning Net Income 168,544 220,933 165,490…
Loading...
