Asian Oilfield Services Ltd. Investor Presentation February 2020 1 - PowerPoint PPT Presentation

Asian Oilfield Services Ltd. Investor Presentation February 2020 1

Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Asian Oilfield Services Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 2

Q3FY20 Financial Performance

Q3FY20 Consolidated Profit & Loss Statement  Updates on Q3FY20 performance: Particulars (in Rs. Crore) Q3FY20 Q3FY19 Y-o-Y Q2FY20 Q-o-Q  Ongoing execution of the Langley turnaround maintenance project is Revenue from Operations 86.4 49.8 73.6% 55.5 55.7% progressing very well and running at a heathy pace, which primarily Oilfield services related expense 54.2 30.1 35.1 contributed to robust performance in Q3FY20 . The project is likely to be Gross Profit 32.3 19.7 63.9% 20.4 57.8% completed in next fiscal year 37.3% 39.5% 36.8% Gross Margin  Field activity and seismic data acquisition of Arunachal Pradesh seismic 2.2 4.0 2.4 Employee expense project of Oil India Limited was completed in January 2020. The final Other expenses 3.4 3.2 5.5 report submission is under process EBITDA 26.6 12.5 112.8% 12.5 112.4%  Himalayan seismic project of ONGC is on track and is expected to be EBITDA Margin (%) 30.8% 25.2% 22.6% completed by end of February 2020 Other Income 1.4 0.6 1.3  One of our customers has encashed performance bank guarantee (PBG) 4.9 5.3 4.9 Depreciation of Rs. 12.25 crore provided for Manipur seismic project which was under 23.1 7.9 9.0 158.3% EBIT 193.3% force majeure since 2017. The management believes that the encashment of PBG is against the contractual terms . Hence, the matter EBIT (%) 26.8% 15.8% 16.1% has been referred for arbitration Finance Cost 0.6 1.5 0.1  During the quarter, the company received an order worth Rs. 570 crore Profit before exceptional items 8.9 22.6 6.4 and tax (excluding GST) from a reputed Indian Oil & Gas Company for acquisition of 2D and 3D seismic data of oil blocks located in Rajasthan -3.2 -2.7 0.0 Exceptional Items and Gujarat. The project is to be executed within two years 19.4 3.7 8.9 117.8% Profit before Tax 420.4%  PBT Margin (%) 0.0 7.5% 16.0% Free Cash and bank balance (net of outstanding debt) is ~Rs. 52 crore as on 31 st December 2019 Tax 19.4 0.0 2.6 Profit after Tax 22.4% 3.7 276.3% 6.3 122.6% Consolidated Net Worth as on 31 st December 2019 is ~Rs. 163 crore  PAT Margin (%) 5.4 7.5% 11.3% Cash PAT 14.0 9.0 11.2 69.0% 110.4% 16.2% 18.0% 20.1% Cash PAT Margin (%) 4

Consolidated Balance Sheet ASSETS (Rs. Crs) Sep-19 Mar-19 Mar-18 EQUITY AND LIABILITIES (Rs. Crs) Sep-19 Mar-19 Mar-18 Non-current assets 95 100 114 Equity 149 152 141 Property, plant and equipment 84 97 78 Equity share capital 38 38 38 Intangible assets 2 3 3 Other equity 114 102 111 Financial assets Non-Current Liabilities 2 0 14 Loans 0 0 0 Financial liabilities Other financial assets 0 9 0 Borrowings 0 0 14 Income tax assets 15 14 5 Other Financial Liabilities 2 0 0 Other non-current assets 0 0 0 Provisions 0 0 0 Current Assets 216 118 138 Current Liabilities 160 66 98 Inventories 1 2 0 Financial liabilities Financial assets Borrowings 4 4 18 Trade receivables 59 62 100 Trade payables 45 55 32 Cash and cash equivalents 3 8 51 Other financial liabilities 7 11 32 Bank balances other than above 22 16 36 Other current liabilities 1 2 95 Loans 1 8 3 Provisions 5 5 6 Other financial assets 2 20 3 Current tax liabilities 2 0 0 Other current assets 30 22 22 TOTAL - EQUITY AND LIABILITIES 311 218 253 TOTAL - ASSETS 311 218 253 5

Order Book Details (1/2) Total Outstanding Order Book ~Rs. 997 Cr (ex. GST) as on 31 st December 2019  Domestic: Client: ONGC & Oil India • Scope of work: 2D Seismic Data Acquisition & Basic Processing Services in Himalaya & North East Region o Seismic Order worth: ~Rs. 10 Cr Services o Client: Reputed Oil & Gas Company • Scope of work: Acquisition of 2D and 3D seismic data of oil blocks located in Rajasthan and Gujarat o Order worth: ~Rs. 570 Cr o  Client: Amni International (Nigeria) Production Facility  Scope of work: Upgradation of an existing Mobile Offshore Production Unit (MOPU) in Nigeria Construction and O&M  Order worth: US $52 Million. Have booked US $22 Million in revenue and balance will be booked in coming quarters  Client: Oilmax Energy Operations  Scope of work: Construction of Onshore facility + Provide O&M services for 10 years upon start of production at Charaideo & (Assam) Maintenance Services  Order worth: Rs. 210 Cr 6

Order Book Details (2/2)  Order Book: The total outstanding net order book is about Rs. 997 crore (ex. GST), of which seismic constitutes 58%, Production Assets constitutes 21% and O&M constitutes 21%. Domestic orders constitute 79% and International orders constitute 21%. From the order book, we have excluded the order worth USD 37 million (about Rs. 259 crore) which we had received in Q1FY20 for 2D and 3D COP Seismic Acquisition in Republic of Iraq, as the project is likely to get deferred due to the ongoing geo-political situation  New Projects: The execution of Nigeria Langley Project has been initiated in May 2019 and the execution is ongoing at a healthy pace. This project is expected to be completed by next year Mobilization for the recently awarded project for acquisition of seismic data of oil blocks located in Rajasthan and Gujarat is under progress and as per schedule  Existing Projects: We plan to complete the remaining work of seismic projects at Assam, Himachal Pradesh & Arunachal Pradesh in Q4FY20 Completion of projects will help Asian to secure additional work in seismic division and start execution of new projects immediately 7

Asian Oilfield Services – Oil & Gas Services Specialist

Introduction Asian Oilfield 5 Ongoing Projects 19 Projects Completed Incorporated in 1992 Asian is an oil & gas industry service provider, offering end-to- end services across the entire upstream value chain. Currently offering Geophysical data acquisition (seismic), Production 380 Facility Construction, Production Facility 0 People Strong LTIF Operation and Maintenance (O&M). It also Project Team plans to provide Turnkey Drilling and Enhanced Oil Recovery services going ahead Oilmax – New Promoter ~ Rs. 997 cr Oilmax became the New Promoter of 6 Countries Asian Oilfield in 2016-17 and Footprint transformed the company from O/S Order Book (ex. GST) Seismic service provider to being a wide scale service provider in Oil-Gas services Business 9

Advantage ASIAN Technology Driven Solutions Strong Balance Sheet & Asset Base Only Indian company to offer 3D wireless seismic Debt free Balance Sheet with Net Worth of technology Rs. 149 Cr Attractive option to potential customers who are Strong asset base of Seismic Survey looking to work in challenging environments equipment's Diverse Services Experience Across Challenging Terrains Seismic, Production Facility Construction, Production Extensive work experience across challenging Facility Operation and Maintenance (O&M) terrains and International geographies ASIAN also plans to provide Turnkey Drilling and Enhanced Oil Recovery services going ahead Experienced Management Team Diverse Geography & Strong Customer Base Operating in Domestic as well as International Markets Highly experienced Promoter Group & Professional Management Strong asset base of Seismic Survey equipment's 10