EURASIA DRILLING COMPANY LTD Goldman Sachs European Oil Services Symposium 2012 London May 25, 2012
Agenda EDC Overview Overview Outlook Outlook 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 2011 Growth Revenues US 2,752 million 51.9% Outlook EBITDA US 597 million 37.0% Net Income US 277 million 33.7% Market Share 25.4% by meters…
Geographic presence EDC Overview Head Office Regional/Branch Office Support Base Operational Areas Outlook TIMAN-PECHORA Usinsk EASTERN SIBERIA Kogalym Investment Case Moscow WESTERN SIBERIA VOLGA-URALS…
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 in line with total meters drilled and…
2012 Outlook- Offshore operations EDC Overview In February 2011, the Company acquired the Saturn (formerly Trident 20) jack up rig from Transocean which is currently contracted to Petronas Carigali Sdn Bhd in the Turkmen waters of…
Summary financial guidance EDC Overview Our expected total drilling volume for 2012 is 5.5 million meters Pricing in ruble terms has increased by 5-7% on average Outlook Horizontal meters drilled are expected to increase further…
1Q-12 Results Update EDC Overview Financial update Operations update Top line revenue up 50% to US 746 million Drilling output for 1Q-12 was 1,291,633 meters, (Q1 2011: US 498 million); 31% above 1Q-11 (985,137 meters); EBITDA…
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 y-o-y production decline 0.0% 9,400 Russian brownfield 9,300 production has virtually -0.5% 9,200 stopped declining since 1Q10. Outlook -1.0%…
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…
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)…
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 Investment…
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%…
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% Investment Case 76% 57% 55% In 2007 the share of non-Lukoil In 2010…
Rig fleet and CAPEX EDC Overview EDC rig fleet (drilling & sidetrack rigs) EDC capital expenditures (US mln) 470-500mm 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 1,000 debt late in 2010 and during 800 753 1H-11: 600 3-years ruble denominated US (million) Outlook 404 loan from Alfa bank…
Q&A EDC Overview Outlook Investment Strategic Focus Case Investment Positioning Case Fin. Positioning Highlights Summary Q&A 22
Appendix: IR contacts & Calendar EDC Overview 2012 upcoming events June 25-26 16th Annual Renaissance Capital Investor Conference August 1H 2012 Results Outlook Investment Case Investor Relations key contacts Richard Anderson…
Appendix: Worlds largest drillers EDC Overview --550-- Nabors Industries LTD M --5.5-- Helmrich & Payne, Inc R Outlook A I --364-- Precision Drilling Corp --4.5-- Nabors Industries LTD R G --350-- Patterson UTI Energy, Inc K…
Appendix: Income Statement EDC Overview 2007 2008 2009 2010 2011 in US thousands Audited Audited Audited Audited Audited Av. Exchange Rate RUB/USD 25.6 24.9 31.7 30.4 29.4 Total Revenue 1,492,189 2,101,779 1,382,203 1,812,156…
Appendix: Balance Sheet EDC Overview 2007 2008 2009 2010 2011 in US thousands Audited Audited Audited Audited Audited ASSETS Current Assets Cash 343,089 279,430 433,724 629,466 509,781 Accounts Receivable,net 230,888 230,147…
Appendix: Cash Flow Statement EDC Overview 2007 2008 2009 2010 2011 in US thousands Audited Audited Audited Audited Audited Net Income 168,544 220,933 165,490 207,353 277,237 Non-cash Adjustments (Depreciation) 58,705 101,777…
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