Confidential

UMW WORKOVER

SIT PRESENTATION
18th DECEMBER 2014

Agenda
1

C o mpany Overview

Business S trategies

Strategic Roadmap

Financial Overview

1. Company
Overview

Overview
Background

1988

Establishment of UMW Oilpipe Services Sdn Bhd marks

our foray into the oil and gas business

2002

UMW Oil & G as division was established

12 November 2012

UMW Oil & G as C orporation Sdn Bhd incorporated in

Malaysia as a private limited company

14 May 2013

UMW Oil & G as C orporation Sdn Bhd converted into a

public company

1 November 2013

UMW Oil & G as C orporation Bhd Listed in Bursa Malaysia

Staff Strength

719 (as at 31 Dec 2013)

Financial Performance 2013

Revenue

RM 737 Million / USD 234 Million

PBT

RM 205 Million / USD 65 Million

PAT

RM 192 Million / USD 61 Million

3

Exchange rate 31.12.2013 : RM 3.1504 = US D 1

Share price performance

Key Data as at 24.2.2014
Issue Price

RM 2.80

52 Week High
52 Week Low

RM 4.63
RM 3.10

Issued shares

2.62 Billion

Market Capitalisation

52 week high:
RM 4.63
10.2.2014

RM 9.4 Billion

Business overview
We are a Malaysian-based multinational oil & gas (O&G) player focused on
providing drilling and oilfield services for the upstream sector of the O&G industry
Oilfield services

Drilling services

Offshore drilling

Provide drilling services for both

exploration and development activities

Semi-submersible drilling rig

- Jointly-own and operate one semisubmersible drilling rig

Premium jack-up drilling rigs

- Currently owns seven premium jack-up
drilling rigs

UMW-OGs market share(2)

SEA
5%

OCTG threading,
Inspection & repair services

Hydraulic workover

Malaysia
11%

Provide workover, repair and

maintenance services for oil ad gas
wells

Also provides agency services for

specialised equipment and services for
overseas clients

Provide OCTG threading, inspection and

repair services

Facilities in Malaysia, Thailand, China

and Turkmenistan

6 plants in 4 countries

Own and operate four Hydraulic

Workover Units(1)

UMW-OGs market share(3)

UMW-OGs market share(4)

Threading Malaysia

Malaysia

SEA
11%

36%

Threading China

29%

< 1%

Portfolio of high quality assets and premium-focused business

Source:
(1)
10 February 2014 : UMW Petrodril puchased an advanced hydraulic workover unit (HWU) from Canadian Energy Equipment Manufacturing (CEEM). UMWOG expects to take delivery of the HWU by
Q42014
(2)
ODS petrodata as at 21 February 2014
(3)
Douglas-Westwood annual average contracted rig count from 2009-2012
(4)
Douglas Westwood: Based on threading market share on average over 2009-2012.

UMWOG at a glance
First domestic owner
and operator of jack-up
drilling rigs in Malaysia

1 semi-submersible drilling rig

7 premium jack-up drilling rigs(1)
PETRONAS-licensed

5 Hydraulic Workover Units (HWUs) (2)

Sole Malaysian Owner &

Operator of HWUs

Complementary oilfield
services business

PETRONAS-licensed provider of HWU services

Provides OCTG(3) threading, inspection and repair services

6 Plants in 4 countries (Malaysia, Thailand, Turkmenistan
and China)

Oilfield services
6%
International
34%

Revenue breakdown
for 2013

Local
66%
Drilling services
94%

(1)

(2)
(3)

6 February 2014: UMWOG entered into a Vessel Construction Agreement with Keppel FELS Limited ("Keppel FELS") for the design, engineering and construction of a Rig
Vessel, KFELS B Class jackup rig, for a cash consideration of US$218 million. UMWOG expects to take delivery of the drilling rig by the end of September 2015.
12 February 2014: UMWOG entered into a Sale and Purchase Agreement with Tianjin Haiheng for the purchase of two jack-up drilling rigs for a total purchase consideration of
US$434 Million. UMWOG expects to take delivery of the drilling rigs by September 2014 and December 2014.
10 February 2014 : UMW Petrodril puchased an advanced hydraulic workover unit (HWU) from Canadian Energy Equipment Manufacturing (CEEM). UMWOG expects to take
delivery of the HWU by Q42014
OCTG = Oil country tubular goods

Our assets : Drilling Operations

NAGA 1
Semisubmersible Rig
Water depth: 1000ft

NAGA 2
Jack-up Rig
Water depth: 350 ft

NAGA 3
Jack-up Rig
Water depth: 350 ft

NAGA 5
Jack-up Rig
Water depth: 400 ft

NAGA 4
Jack-up Rig
Water depth: 400 ft

NAGA 6
Jack-up Rig
Water depth: 375 ft
Delivery : Q32014

8 Offshore Rigs
NAGA 7
Jack-up Rig
Water depth: 375 ft
Delivery : Q42014

Gait I
Workover rig hp: 400

NAGA 8
Jack-up Rig
Water depth: 400 ft
Delivery : Sept 2015

Gait II
Workover rig hp: 600

5 Workover rigs

Gait III
Workover rig hp: :600

Gait V
Workover rig hp: 600

Gait VI
Workover rig hp: 600
Delivery: Q4 2014

Our assets : Oilfield Services Operations

UMW Oilpipe Services Sdn Bhd

Year
: 1988
Location : Labuan West Plant & East Plant

UOT (Thailand) Ltd

Year
: 1997
Location : Songkla & Sattahip, Thailand

UMW Oilfield Services (Tianjin) Co., Ltd

Year
: 2002
Location : Tianjin, China

UMW Oilpipe Services (Turkmenistan) Ltd.

Year
: 2006
Location : Turkmenbashi, Turkmenistan

Our presence

Turkmenistan

China

Semi-submersible rig
NAGA 1 Offshore Sarawak

Oilfield services operations

UOS
Labuan, Malaysia
UOT
Songkhla and Sattahip, Thailand

Jack-up rigs

Thailand

UOS-TJ Tianjin, PRC

Vietnam

UOS-TK
Turkmenbashi, Turkmenistan

NAGA 2 Offshore Vietnam

NAGA 3 Offshore Labuan
NAGA 4 Offshore Sarawak

Malaysia

Hydraulic workover units

GAIT I KSB, Malaysia
GAIT II ASB, Malaysia
GAIT III KSB, Malaysia
GAIT V Bongkot Field, Songkhla, Thailand

International experience and platforms facilitate further

growth overseas
International presence

Accumulate
China
Oilfield
services

Thailand
Oilfield
services

Indonesia
Offshore
drilling

Vietnam
Offshore
drilling

Workover
units

Workover
units

Workover
units

Turkmenistan
Oilfield
services

Experience with international oil and gas companies

PETRONAS
Carigali

knowledge of local
regulations and
relationships

Track record
enables UMW-OG
to be competitive in
bids for contracts
from international oil
and gas companies

Familiarity with
operations and
HSE(1) requirements
of international oil &
gas companies

In a favourable position to undertake projects for international customers as well

as Malaysian customers operating internationally
(1)

HSE = Health, Safety and Environment

10

Build Asset Base

Recent Rigs Acquisition
UMW NAGA 6, UMW NAGA 7, UMW NAGA 8 and GAIT VI

UMW
NAGA 6

UMW
NAGA 7

UMW
NAGA 8

GAIT VI

Design: MSC CJ-46-X 100D

Delivery: Sept 2014
Cost: US$217 Million
Vendor: Tianjin Haiheng Shipbuilding & Offshore
Engineering Service Co

Design: MSC CJ-46-X 100D

Delivery: Dec 2014
Cost: US$217 Million
Vendor: Tianjin Haiheng Shipbuilding & Offshore
Engineering Service Co

Design: KFELS B Class

Delivery: Sept 2015
Cost: US$218 Million
Design, engineering and construction: KEPPEL Fels
Ltd

Design: CEEM 460K AHW U

Delivery: Q4 2014
Cost: US$2.8 Million
Vendor: Canadian Energy Equipment Manufacturing
FZE

To further expand into the

broader Asia-Pacific region as
part of our plan to be a global
player
To capitalise on favourable
industry conditions with an
enlarged asset capacity
To be more efficient in our
operation and maintenance due
to common equipment and
spare parts since we have four
of similar specifications rigs in
our fleet
To capitalise on the strong
market demand for our rigs

14

Build Capabilities

Drilling academy was established

in collaboration with INSTEP

Objectives:
Building Capabilities & Competencies
Addressing shortage of skilled
personnel

Rig Simulator

Land Rig

The Academy will be fully operational by the first quarter of 2014

Building Capabilities and Competencies

15

Secure Market Share

GAIT 2

NAGA 3

NAGA 5

PetroVietnam
Country: Vietnam
Date: June 2013

PetroVietnam
Country: Vietnam
Date: April 2014

NIDO
Country: Philippines
Date: June 2014

GAIT V

UOS Tianjin

UOS Turkmenistan

PTTEP
Country: Thailand
Date: July 2013

Baosteel
Country: China
Date: August 2013

Scomi Oiltools
Country: Turkmenistan
Date: January 2014

16

Secure Contracts
2012

2013

2014

2015

2016

2017

2018

Delivery
(2009)

Contracted with PCSB until Aug 2018

Contracted with Petrovietnam

Drilling till Mar 2015

Contracted with PCSB till Mar 2014

PETRONAS
Carigali
Petrovietnam
for two wells
(Sept 2013)

PETRONAS
Carigali

Contracted with PCSB till Apr 2013

Delivery
May 2014

400ft

2011

PETRONAS
Carigali

Delivery
(2010)

NAGA
1
NAGA
3

400ft

NAGA
5

350ft

NAGA
4

350ft

NAGA
2

1000ft

2010

Delivery
2013

Rated
Water
depth

Optional
extension
until
Apr 2018

Awarded
6 week
contract
(December 2013)

Rigs fully contracted out to blue chip customers

17

Manage Day Rates and Utilisation

PETRONAS
Carigali
75%

NAGA 1

C ontract
till Nov
2015

Extension
to Aug
2016

30%
>25%

Extension
to Aug
2018

Extension to Oct
2014 + option till
Mar 2015

NAGA 2

>15%

~5%

PETRONAS
C a rigali

NAGA 3

C ontract for 2
wells : estimated
till Sept 2014

NAGA 4

PETRONAS
C a rigali :
NAGA 3

PETRONAS
C a rigali

C ontract till Apr

2016 + option
till Apr 2018

>15%

NAGA 5

PETR O NAS
C a rigali :
NAGA 3

C ontract for 6 weeks :

estimated till July 2014

Securing contracts with higher day rates

18

Health, Safety and Environment

UMW-OG has demonstrated a strong operational track record and a focus on Health, Safety and Environmental compliance:

Policies

Certifications

Quality
Health, Safety & Environment
Drugs & Alcohol
Stop Work
Smoking

Commitment to Safety Practices

Total Recordable Case Frequency (TRCF)(1)
0.8

2012

0.24

0.21

2013

Jan-2014

Committed to the health and safety of personnel, protection of the environment and
compliance with applicable laws and regulations
(1)

For a period, the total recordable case frequency is equal to the number of recordable cases multiplied by 1,000,000 and divided by actual man hours worked. Recordable
cases consist of fatalities, permanent total or partial disabilities and lost workday cases (excluding restricted workday cases).

19

3. Strategic Roadmap
20

Fleet Expansion & Geographical Expansion

Growing our fleet to capture the demand in SEA and ASEAN region
Planned

21

Balancing Long Term & Short Term Contract

Long Term

Earnings visibility
Revenue stability

Short Term

Higher Day rates

NAGA 1 :
Contracted till 2018

NAGA 2 :
6+6+4+
5 (option) months

NAGA 4 :
Contracted till 2016,
extension 2018

NAGA 3:
~5 months

NAGA 5 :
6 weeks

Balancing for sustainability and capitalising on the high demand for rigs
22

4. Financial overview

23

2013 Financial Results

RM Million

Revenue

Profit /(Loss) Before Tax

Profit /(Loss) After Tax

2012

2013

2012

2013

2012

2013

Drilling Services

678

692

99

191

88

176

Oilfield Services

43

44

Others

(21)

(21)

10

TOTAL

724

737

84

205

72

192

2% growth

144% growth

737

205

724

167% growth

192

84
2012
Drilling

2013
Oilfield

72

Others

2012
Drilling

2013
Oilfield

Others
2012
Drilling

2013
Oilfield

Others

24

Financial Performance
RM Million

RM Million
800

724

700
600

400

102

205

200
150
100

84
72

79

349

250

192

550

500

737

50

300
200
100

(41)
(50)

(48)

(100)
2010

2011
Oilfield

Drilling

Others

PBT

2013
PAT

Rig Utilisation

Rig

O wnership

NAGA 1

50%

NAGA 2

100%

NAGA 3

100%

NAGA 4

100%

Hakuryu 5

BBC

0 25%
utilised

2012

26% 50%
utilised

51% 75%
utilised

76% 99%
utilised

100%
utilised

Increase in number of rigs in operations contributing to the growth

25

Revenue development
Revenue segmentation (RM Million)

724
3
43

Revenue by geography (RM Million)

737
1
44

550

550
3
35

2-4

41

161

124

2-1

678

66

145

349

349
110

737

724

692
101
36

512

539

506

385
236

2010

212
2011
Drilling

2012
Oilfield

Others

2013
2010

2011

Malaysia

Indonesia

2012
Vietnam

2013

Others

Robust revenue growth driven by UMWOGs execution capabilities

(1)
(2)
(3)

Others segment is involved in investment holdings, provision of support services, management and corporate services.
Other countries include Turkmenistan, Thailand, China, Singapore and others.
Totals may not form an arithmetic aggregate of their components due to rounding.

26

Earnings development
EBITDA (RM Million)

9.1%

33.2%

Profit / (Loss) after tax (RM Million)

25.6%

43.3%

-13.7%

14.4%

9.9%

26.1%

319
192

182

185
79

72

32
2010

2010

2011

2012

2011

2012

2013

2013

(48)
EBITDA

EBITDA margin

PAT/(LAT)

PAT/(LAT) margin

27

Gearing Ratio
Figures in times

2012
6.3

Q3 2013

2013

After internal
reorganisation

After IPO

2.9

0.9

0.7

0.3

-0.1
Include inter-company advance

Net Gearing

Exclude inter-company advance

Gross Gearing

RM 1.2 Billion cash in hand significantly reduced the gearing ratio

28

Capital expenditure (as at 18.2.2014)

Plant &
machinery
RM 10.9 Million

Others RM
8.5 Million
0.4%

0.6%

Rigs & HWUs

RM 1.9 Billion
99.0%

Developing and further expanding our asset base

2014 TOTAL CAPEX = RM 1.9 Billion
29

Q&A

30

Thank You

31