EURASIA DRILLING COMPANY LTD EURASIA DRILLING COMPANY LTD Morgan Stanley Global Natural Resources Conference Barcelona, Spain September 16-17, 2013 1
Agenda 1. EDC at a glance 2. 2013 Outlook 3. Market 4. Operations 5. Financial performance 3
EDC at a glance The largest drilling company in Russia and the CIS 1H 2013 Change Revenues US 1.7 billion +7.6% EBITDA US 441 million +17% EBITDA margin 26% +2.1 pp Net Income US 217 million +14.8% Operating Statistics 3,039,245…
History constant steady growth Schlumberger (SLB) asset transaction Ordered MERCURY Meters drilled, thsd m and strategic alliance in Russia and CIS jack-up from Lamprell 20% CAGR (19 drilling, 23 sidetrack & 34 W/O rigs) (Q4 2014…
Geographic presence Head Office Regional/Branch Office Support Base Operational Areas TIMAN-PECHORA EASTERN Usinsk SIBERIA Kogalym WESTERN Moscow Russia SIBERIA Tyumen VOLGA-URALS Kaliningrad Tomsk Zhirnovsk Kazakhstan…
Agenda 1. EDC at a glance 2. 2013 Outlook 3. Market 4. Operations 5. Financial performance 7
2013 Outlook Summary 2013 financial guidance Total revenues for 2013 are expected to be in excess of US 3.55 billion. EBITDA margin should be approximately 26% for the full year of 2013. Onshore Drilling and Workover Services Onshore…
2013 Outlook continued Offshore Drilling The SATURN j/u continues drilling for Petronas under a new 3-year contract effective January 9, 2013 in Turkmen waters of the Caspian Sea. The ASTRA j/u is committed to a full 12 month…
1H 2013 Results Summary Financial update Operations update Top line revenue up 7.6% to US 1,695 million Drilling output was 3.039 mln m, + 5.9% vs 1H12; (1H12: US 1,575 million); Horizontal metres drilled was 492 th m, +19.6% vs…
Agenda 1. EDC at a glance 2. 2013 Outlook 3. Market 4. Operations 5. Financial performance 11
Russias oil industry Russian oil production Russian oil production by region(1) 26 Oil prices backdrop has 24 4% 5% 21 23 5% 5% 5% 5% 6% 6% 4% 5% 5% 5% been supportive for 19 5% 7% 15 15 17 21% 8% drilling activity…
Drilling market dynamics Onshore well construction & servicing market, bn Drilling volumes in Russia, mn m 26.5 CAGR +10% Russian drilling industry 22.1 24.4 has demonstrated 27.2 19.6 25.5 increased drilling 24.4 21.1 15.7…
Market structure Russias onshore drilling by footage, 2012 EDC market share dynamics EDC 29% SSK 7% 29% 29% RU-Energy 7% 25% Independent: 22% WFT 4% 60% 17% Eriell 2% Other major independent 3% Smaller independent 8%…
Agenda 1. EDC at a glance 2. 2013 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 1H13 EDC customers Capex of Russian oil majors, bn Brent consensus 110 110 Rosneft Others forecast, /bbl 8% 1% TNK-BP…
Rig fleet EDC is to maintain a competitive drilling fleet EDC drilling rig fleet EDC rig fleet by age 59% EDC fleet is younger than Russias average 34% 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. 2013 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 2016…
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 thsd 2010 Audited 2011 Audited 2012 Audited Assets Current assets Cash and cash equivalents 629,466 509,781 305,333 Accounts receivable, net 252,749 378,523 528,813 Inventories 127,918 190,727 213,058 Other current…
Income statement 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…
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