2010 annual results - todayir · 4 total revenue rmb (million) business review in 2010 net profit...
TRANSCRIPT
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2010 Annual Results
21 March 2011
1
These materials have been prepared by Anton Oilfield Services Group
(the “Company”, together with its subsidiaries, the “Group”) and have not
been independently verified. No representation or warranty, expressed or
implied, is made and no reliance should be placed on the accuracy,
fairness or completeness of the information presented or contained in
these materials. The Company or any of its affiliates, advisers or
representatives accept no liability whatsoever for any loss howsoever
arising from any information presented or contained in these materials.
The information and data presented or contained in these materials is
subject to change without notice and its accuracy is not guaranteed.
Disclaimer
2
Agenda
Business Review in 2010
Operational and Financial Review
Outlook
Q & A
33
Business Review in 2010
4
Total revenue
RMB (million)
Business Review in 2010
Net profit
37.6
125.9
0
50
100
150
2009 2010
Earnings per share (basic)
Total revenue increased by 37.8% to RMB950.7 million.
Net profit increased by 234.9% to RMB125.9 million.
Net profit attributable to equity holders increased by 264.3% to RMB117 million.
Earnings per share increased by 264.1% to RMB0.0557.
Benefited from the factors such as global economic recovery and increase in real
economic demand, the oil industry fully recovered in 2010. By seizing the
opportunities arising from the acceleration of natural gas investment of oil
companies, the scaled application of horizontal well technologies, the growth of
demand for integrated services and increased overseas investments,
the Group has returned to its track of high speed growth.
0.0153
0.0557
0
0.02
0.04
0.06
2009 2010
690
950.7
0200400600800
10001200
2009 2010
RMB (million) RMB
5
Improvement of
business
structure
Promotion of
integrated
services
Established an oil and gas reservoir assessment division, which supported the integrated development of the
drilling, well completion and oil production businesses of the Group in the course of oil and gas field
development.
Established the Integrated Project Business Unit to provide integrated general contracting services to customers.
The Group was successful in promoting its self-developed new technologies and its overall gross profit margin
rose due to a higher proportion of revenue contribution from products falling into the technical services category.
Industry recovery
Increased efforts
in R&D
Research on new services and products surrounding the technological features of natural gas exploration,
horizontal well operation and integrated services.
Establish a R&D centre in Houston, U.S, to enhance the global research system.
Business Review in 2010
Breakthroughs in
overseas market
The follow-up overseas strategy achieved remarkable results and revenue recorded from the overseas markets
reached RMB160 million, increasing by 85.5% from 2009 with the contribution to total revenue increased from
12.5% to 16.8%.
Seized the opportunities in the post war reconstruction of the Middle East and focused on developing the Middle
East market and achieved breakthroughs.
In 2010, China’s oilfield services industry fully recovered. By seizing the opportunities arising from the
acceleration of natural gas investment of oil companies, the scaled application of horizontal well technologies, the
growth of demand for integrated services and increased overseas investments of Chinese investors, the Group
returned to its track of high speed growth.
66
Operational and Financial Review
7
Business Segments
Drilling Technology
Cluster
Well Completion
Cluster
Down-hole
Operation Cluster
Tubular Services
Cluster
Oil & gas development services Tubular Services
8
Well Completion
Business OverviewWell completion
Revenue increased by 52.1% in 2010
Well completion
EBITDA increased by 53.3% in 2010
Integrated Well Completion Technology and
Screen Well Completion Technology Services
The Group combined the integrated well completion technology
division and screen well completion technology division to achieve
centralized management, revenue of the combined division was
RMB181 million, representing a growth of 61.4%.
The self-developed tool design, testing and assembling
capabilities have been achieved as the base of the Group for
assembling the well completion tools commenced operation. The
products enjoy cost advantage when compared to international
products.
Gravel Packing Well Completion
Revenue of gravel packing well completion services was
RMB117.0 million, representing a growth of 40.3%.
Gravel packing well completion services were operated by
Shandong Precede, in which the Group was a controlling
shareholder. The gravel packing technology of the Group has
already established a stable position in its existing market and has
expanded to domestic and overseas oilfield markets.
213.9
325.3
2009 2010
91.5
140.3
2009 2010
RMB (million)
RMB (million)
9
Down-hole Operation
100.0
344.0
2009 2010
Down-hole Operation
Revenue increased by 243.8% in 2010
37.8
138.8
2009 2010
Down-hole Operation
EBITDA increased by 267.2% in 2010
Business Overview
Production Enhancement Services
The revenue of production enhancement services increased by
255.4%, to RMB221 million, attributed by the marketing efforts of
multistage fracturing technology for horizontal wells.
Coiled Tubing Operation
Revenue amounted to RMB61.2 million in 2010.
Established 3 coiled tubing operation teams for the southwestern
China region, the Changqing region the Middle East market. The
coiled tubing operation has been successfully applied in the domestic
market and expanded into the Middle East.
Tubular Helium Testing Services
Revenue increased 87% to RMB28.8 million.
Established a leading position in China and the services are ready to
launch in major gas fields and gas storage facilities.RMB (million)
RMB (million)
10
Drilling Technology
Drilling Technology
Revenue increased by 10.7% in 2010
Drilling Technology
EBITDA increased by 53.6% in 2010
Business Overview
Integrated Project Business Unit Achieved revenue of RMB26.8 million
In August 2010, the Group won the bid for drilling and related
works contract of the Carbon Capture and Storage (“CCS”) model
project of Shenhua Group, under which, the Group provided
Shenhua Group with integrated technical services and started to
provide integrated technical services for coal seam gas.
Directional Drilling Division Revenue was RMB70.7 million, dropped by 19.8%.
Established a directional drilling division which included various
technological features of high temperature and high pressure
directional drilling, casing exiting sidetracking and drilling
acceleration which had been successfully applied in oil and gas
fields.
88.1
97.5
2009 2010
22.4
34.4
2009 2010
RMB (million)
RMB (million)
11
Business Overview
Tubular Services
Tubular Services
Revenue increased by 36.1% in 2010
Tubular Services
EBITDA increased by 16.0% in 2010
Revenue of the tubular services cluster was RMB184.0 million,
which represented a decrease of 36.1%, primarily due to the
Group’s initiative in adjusting its business structure to increase the
proportion of tubular testing and repair technology and lowered the
weighting of sales of tubular production. The profitability of the
cluster has been enhanced.
Developed its mobile production line of tubular testing and repair,
and obtained a mandate to repair tubular premium connections
from Baoshan Iron & Steel Company Limited.
288.0
184.0
2009 2010
51.2
59.4
2009 2010
RMB (million)
RMB (million)
12
Breakdown of Business Clusters
Revenue Breakdown in 2010
EBITDA in 2009EBITDA in 2010
Well Completion
31.0%
Down-hole Operation
14.5%Drilling
Technology12.8%
Tubular Services41.7%
Well Completion
45.1%
Down-hole Operation
18.6%
Drilling Technology
11.0%
Tubular Services 25.2%
Well Completion
34.2%
Down-hole Operation
36.2%
Drilling Technology
10.3%
Tubular Services 19.4%
Well Completion
37.6%
Down-hole Operation
37.2%
Drilling Technology
9.2%
Tubular Services 15.9%
Revenue Breakdown in 2009
13
EBITDA margin by clusters
43.1%40.4%
35.3%32.3%
42.8%
37.8%
25.4%
17.8%
0%
10%
20%
30%
40%
50%
Well Completion Down-hole
Operation
Drilling Technology Tubular Services
2010
2009
14
(RMB Thousand)
2010 2009
Revenue 950,715 690,030
Other gains, net 575 3,748
Operating costs
Material costs (395,050) (368,240)
Staff costs (123,533) (115,140)
Operating leases expenses (12,741) (7,496)
Depreciation and amortisation (50,827) (34,547)
Sales tax and surcharges (18,619) (13,547)
Others (205,104) (117,317)
Operating profit 145,416 37,491
Interest income 3,119 3,403
Finance expenses (5,816) (1,602)
Share of loss of a jointly
controlled entity(424) (961)
Profit before income tax 142,295 38,331
Income tax expense (16,369) (725)
Net income 125,926 37,606
Income Statement
15
Sales revenue in 2010: RMB950.7 million
Sales revenue in 2009: RMB690.0 million
Cost Analysis
Costs of Materials
The increase in absolute value was mainly due to
business growth. Its proportion to revenue has
decreased due to the optimization of business structure.
Staff Costs
In 2010, staff costs increased due to an improvement in
the talent structure of the Group with a higher proportion
of talents with high academic qualifications and quality.
Operating Lease Expenses
The increase was due to an increase of equipment
leases resulted from the rapid business growth
Depreciation and Amortisation
The increase was mainly attributable to higher
depreciation resulting from the increased use of the
equipment in various clusters.
Sales Tax and Surcharges
The increase was due to a significant increase of
revenue.
R&D, Marketing, Administration and Others
The increase was mainly attributable to increased
revenue and increased R&D efforts.
Proportion of costs to sales revenue
16
Balance Sheet
(RMB Thousand)
31 December 2010 31 December 2009
Property, plant and equipment 419,471 334,240
Land use rights 25,486 26,051
Intangible assets 345,858 312,087
Investment in a jointly controlled
entity
50,244 50,668
Deferred income tax assets 3,008 639
Inventories 265,423 211,613
Trade and notes receivables 671,993 429,985
Prepayments and other
receivables
70,118 82,509
Restricted bank deposits 144,353 3,120
Term deposits with initial terms
of over three months
6,000 67,609
Cash and cash equivalents 188,960 272,959
Total assets 2,190,914 1,791,480
Capital and reserves
attributable to the
Company’s equity holders
1,614,014 1,511,365
Non-controlling interests 36,547 34,714
Non-current liabilities 2,150 2,479
Current liabilities 538,203 242,922
Total liabilities 540,353 245,401
Total equity and liabilities 2,190,914 1,791,480
17
Inventory Turnover DaysTrade Receivables Turnover Days
Trade Payables Turnover Days
Working Capital Management
214
195
2009 2010
173
160
2009 2010
87
97
2009 2010
18
Capital Expenditure
The Group’s capital expenditure for 2010 was approximately RMB137.5 million for
building up each business cluster.
Details of investment Amount (RMB million)
Investments in fixed assets 89.5
Investments in intangible assets 39.5
Payment for the equity investments of
prior years8.5
Total 137.5
1919
Outlook
20
New Market
Opportunities
Content
Increase in investment of natural
gas
Development of conventional gas
Development of unconventional natural gases
Construction of underground gas storage facilities
Scaled application and
development of horizontal well
technology
Scaled application of horizontal well technology in major oil and gas
fields
Demand for integrated services General contracting services in oilfields
Overseas investments in
oilfields of Chinese investors
continue to increase
The Middle East and the Middle Asia will become the foci of the
overseas investments of Chinese investors
Better Market Opportunities in 2011
21
Our goal To become a leading global oilfield technology
services provider with a strong foothold in China
Focus on wellbore technologies as its core technologies to establish an integrated oil and gas field
service system, which includes the drilling technology cluster, well completion technology cluster,
down-hole operation cluster and oil production technology.
Develop the tubular services business independently by designing a focused development strategy.
Continue to increase investment in R&D.
Elaborately develop its featured technologies of intelligent well completion, flow control, multistage well
completion, multistage fracturing, coiled tubing, tubular helium testing, pumping services, gas lift oil
production, directional drilling, sidetracking drilling operation, integrated drilling, and tubular services.
Domestic: Firmly seize the opportunities arising from natural gas investments, scaled application of
horizontal well technology and the increasing demand for integrated services. The Group will rapidly
develop its business in key markets where oil companies heavily invest.
Overseas: Continue to adopt the follow-up strategy and set the overseas oilfields of the Chinese
investors as its target markets. It will seize the opportunities in the post war reconstruction of the
Middle East and make efforts to develop the Middle East market. Meanwhile, the Group will continue
to consolidate its Middle Asian and African markets and be in a position to develop the American
market.
Strategic
Positioning
Target Markets
Building of
Technology
Outlook
22
Human Resources
Technical talents, especially the talents of core and high-end technology,
will be further recruited and retained in strength.
Place more emphasis on campus recruitments and training and plan to
recruit 238 fresh graduates in 2011.
Put more investment in training and nurture and recruit talents to
facilitate the sustainable development of the Group.
Human resources is the most important key
to achieve rapid growth of the Group
23
With the full recovery of China’s oilfield services industry,
Anton has entered a new track of high speed growth.
Conclusion
24
Q & A