Gas Arabian Services Co · TADAWUL:4146
Gas Arabian Services — Investor Presentation (November 2023)
58 slides from Gas Arabian Services's investor presentation, November 2023
Slide 1: Investor Presentation
GAS ol essW anysl jL > GAS ARABIAN SERVICES Investor Presentation
Slide 2: Table of contents
Table of contents Section Page Company overview 4 Investment highlights 6 Appendix 32 2
Slide 3: Company Overview
Company Overview 3
Slide 4: Company Overview
Company Overview History and evolution Key metrics • GAS Arabian Services Company was established in 1992 32 Global principals with 1,245 Total employees 2 Operational1 as a trading house in Dammam. exclusive distribution • Over 31-years, GAS diversified its offering, evolving into a total technical
Slide 5: Investment Highlights
Investment Highlights 5
Slide 6: Investment highlights
Investment highlights 1 Robust operating model 2 Strong financial performance 3 Clear path forward 4 Experienced and capable leadership 5 Attractive market fundamentals and outlook 6
Slide 7: Robust operating model
1 Robust operating model Overview • Project management / EPC Technical • Field services: shut down, turn 1 services around and rotating equipment It has diverse revenue • Engineered electrical and streams from its varied instrumentation products and solutions 2 Trading • Engineered mechanical produc
Slide 8: Technical services – Project management
1 Robust operating model Technical services – Project management Project management • GAS technical services deliver projects • GAS is an approved vendor for Aramco, SABIC, and the spanning a range of complexity, organized Saudi Electricity Company, Royal Commission of Jubail into and Yanbu, among o
Slide 9: Technical services – Field services
1 Robust operating model Technical services – Field services Field services • GAS technical services deliver projects Rotating equipment overhauling spanning a range of complexity, organized • Pump maintenance into • Extruder maintenance • Alignment on foundations • Fin fan cooler maintenance • Pre-
Slide 10: Trading: Instrumentation & Mechanical
1 Robust operating model Trading Evolution of principle set 32 • Expanding on its expertise within trading, GAS exclusively represents 32 11 world class principles1 in Saudi Arabia, 6 1 2 2 3 delivering instrumentation, electrical and mechanical products and solutions 1992 1997 2002 2007 2012 2017 2
Slide 11: GAS Arabian Metal Tech Factory
1 Robust operating model GAS Arabian Metal Tech Factory • GAS Arabian Metal Tech Factory was launched in 2019. With total land area of 30,000 square meters, its capabilities are: − Manufacturing − Fabrication − Storage − Sand blasting − Painting and testing • It is an approved vendor1 of Aramco and
Slide 12: Joint ventures (JVs)
1 Robust operating model Joint ventures (JVs) Evolution of GAS’ JV portfolio • GAS identifies opportunities within the value chains of its offerings, and 8 develops JVs around them to enhance 5 6 1 3 0 2 its portfolio. 1992 1997 2002 2007 2012 2017 2023 • GAS has 8 JVs with world class partners, eac
Slide 13: Income contribution from JVs
1 Robust operating model Joint ventures (JVs) Income contribution from JVs (SARmn) • Given COVID-19 supply chain disruptions and lockdowns in 2020, income from JVs was subdued that year. • However, GAS income from JVs is steadily increasing and expected to remain strong. 31 23 24 22 • Approximately
Slide 14: Sales and profitability - Historical
2 Strong financial performance Sales and profitability - Historical Revenue (SARmn) Gross Profit (SARmn) Net Income (SARmn) Gross Profit Margin Net Income Margin 25% 36% 27% 24% 15% 17% 23% 16% 14% 10% 496 446 117 117 386 112 105 74 73 351 67 322 60 54 35 2019 2020 2021 2022 H1'23 2019 2020 2021 202
Slide 15: Revenue contribution by sector
2 Strong financial performance Revenue contribution by sector Average revenue contribution by sector (2018-H1 2023) • GAS’ clients are diversified across 10+ sectors. Petrochemicals 37% • Petrochemicals and oil & gas contributed an average Oil & gas 28% of 37% and 28% of GAS’ revenue, respectively.
Slide 16: Revenue contribution by segment
2 Strong financial performance Revenue contribution by segment Revenue contribution by segment • Over the period 2019 – H1’23, GAS’ revenues segmental contribution on average was: 1% 2% 3% 3% 3% − Trading: 59% − Technical services: 39% 47% − Manufacturing (launched in 2019): 2% 58% 56% 62% 73% • Wit
Slide 17: Balance sheet - Historical
2 Strong financial performance Balance sheet - Historical Assets (SARmn) Liabilities (SARmn) Equity (SARmn) Assets / Liabilities ratio Debt1 / Assets ratio Debt1 / Equity ratio 2.1 2.5 2.6 2.7 2.4 0.15 0.14 0.10 0.07 0.08 0.29 0.24 0.16 0.11 0.15 540 226 317 315 499 201 454 182 41 278 420 398 178 29
Slide 18: Healthy order book and backlog
2 Strong financial performance Healthy order book and backlog Evolution of order book backlog, SARmn • GAS won SAR585mn in new contracts and purchase orders in H1’23 (vs. SAR474mn in FY’22), growing its order book which stood at a backlog of SAR677mn at the end of H1’23. • Given average project exec
Slide 19: Dividends
2 Strong financial performance Dividends Given the importance of generating healthy returns to its equity investors, GAS has distributed dividends over the last three years, at an average dividend payout ratio of 48% In 2022, GAS amended its bylaws to add interim dividends on a 2020 2021 2022 semi-a
Slide 20: Clear path forward: technical services and trading
3 Clear path forward GAS continuously seeks opportunities to grow and compete in its markets more effectively and efficiently. Accordingly, listed below are some of the key initiatives to drive its growth. Technical services Trading • Expanding internal engineering capabilities • Increasing the port
Slide 21: Clear path forward: manufacturing and JVs
3 Clear path forward GAS continuously seeks opportunities to grow and compete in its markets more effectively and efficiently. Accordingly, listed below are some of the key initiatives to drive its growth. Manufacturing Joint ventures • Increasing utilization of the recently launched • Continue to e
Slide 22: Executive team
4 Experienced and capable leadership Executive team Faisal K. AlDabal Aref K. AlDabal Faisal A. Al-Sunaid Vice Chairman and CEO Chief Operating Officer Vice President Khalid Jamal AlDabal Kirubakaran Parthasarathy Mahesh Kumar General Manager General Manager General Manager Investor Relations Mechan
Slide 23: Board of directors
4 Experienced and capable leadership Board of directors Abdulrahman K. AlDabal Chairman Non-Executive Faisal K. AlDabal Vice Chairman and CEO Executive Mohammad S. AlHarbi Fawaz A. Danish Aref K. AlDabal Saeed Atef Saeed Board Member Board Member Board Member Board Member Independent Independent Exe
Slide 24: Oil and gas
5 Attractive market fundamentals and outlook Oil and gas • There is SAR52.5bn worth of oil and gas projects in Saudi Arabia put forth by Aramco in 2023 and 2024 • These projects are primarily for the Jafurah gas field and Zuluf oil field Saudi Aramco oil and gas projects1 for award in 2023 and 2024
Slide 25: Petrochemicals
5 Attractive market fundamentals and outlook Petrochemicals Chemical projects in Saudi Arabia - SARbn 139 • Chemical projects currently under construction in Saudi Arabia total SAR14bn in value. • There are over 30 chemical projects for award in 2023 and 2024 that are valued at SAR139bn. 14 Under co
Slide 26: Renewable energy
5 Attractive market fundamentals and outlook Renewable energy Solar energy production capacity in Saudi Arabia - Gigawatts • Renewable energy is expected to contribute 50% of electricity production in Saudi Arabia by 2030. • The renewable energy market is expected to register a compound annual growt
Slide 27: Water desalination
5 Attractive market fundamentals and outlook Water desalination • Seawater desalination contributes more than 90% of daily water use in countries of the Gulf Cooperation Council (GCC). KSA desalination capacity, million cubic meters per day • Saudi Arabia’s population is expected to reach 40mn by 20
Slide 28: Cement
5 Attractive market fundamentals and outlook Cement • Production capacity of the Saudi cement industry grew at a CAGR of 4% from 2011 to 2022, whereas cement KSA concrete market, MMT production grew at a CAGR of 1%. • Sluggish demand during the period is attributed to volatility in oil prices and pr
Slide 29: Appendix
Appendix 29
Slide 30: List of Aramco oil and gas projects – 2023 and 2024 awarding
List of Aramco oil and gas projects – 2023 and 2024 awarding Project value Award Completion No. Project Industry (SARbn) year year 1 Jafurah - Second phase: Package 1 - Gas processing plant and main process units Gas 2023 2027 10.9 2 Jafurah - Second phase: Package 2 - Utilities and offsites Gas 202
Slide 31: Technical Services
Technical Services 31
Slide 32: Technical Services – Project Summary – EPC
Technical Services – Project Management Project Summary – EPC Total Projects 32 61 ❑ SAUDI ARAMCO DIRECT PROJECTS ❑ SAUDI ARAMCO JOINT VENTURE PROJECTS Completed 52 ❑ SAUDI ARAMCO 3RD PARTY PROJECTS Ongoing PRIVATE & PUBLIC SECTOR 09 16 4 1 1 7 32 32
Slide 33: Project Highlights - EPC
Technical Services – Project Management Project Highlights - EPC Khursaniyah Gas Plant Water Supply Upgrade Project – BI-10-10221 Scope: Engineering Procurement & Construction Contract for upgrade of water pipeline to Khursaniyah RO plant with pipeline from Marafiq to WGP and from WGP to KGP with po
Slide 34: Project Highlights - EPC
Technical Services – Project Management Project Highlights - EPC SEC PP-11 Sales Gas Delivery System Project – BI-21-00044 Scope: Construction, Design and Project Management Activities: LDS, Metering Skid, Construction of Scrapper Launcher and receiver SEC QIPP Sales Gas Delivery System Project – BI
Slide 35: Project Highlights - EPC
Technical Services – Project Management Project Highlights - EPC Royal Commission Sales Gas Network for Plaschem Park – Jubail II Scope: Procurement, Construction and Project Management Activities: Cold Tie in on 20” Saudi Aramco Sales Gas header, 2 Nos of 16” approx 8 kms. pipeline to Plaschem Park
Slide 36: Field Services Project Highlights
Technical Services – Field Services Project Highlights – Shut down –Turn around -Rotating Saudi Aramco Zuluf PJ Onshore Project – Mechanical Package 2 (MC2) Scope: Steel Structure Installation, Mechanical Equipment Erection, Piping Installation, Painting and Steel Structure Pre-Assembly Works. SADAR
Slide 37: Field Services Project Highlights
Technical Services – Field Services Project Highlights – Shut down –Turn around -Rotating PE12 MJSD 2022 Machinery Overhauling in SABIC Sharq Scope: Machinery overhauling of steam turbine, mixer gear reducers melt pump, rotary valves, etc. 53TK6 Tank Inspection and Repair in SABIC Petrokemya North S
Slide 38: Trading
Trading 38
Slide 39: Trading
Trading Instrumentation & Electrical Mechanical Providing Pioneering Products and Solutions in: Sourcing Mechanical Products and Solutions in: ▪ Pressure ▪ Steam Turbines ▪ Corrosion Monitoring System ▪ Flow ▪ Compressors ▪ Flow Control System ▪ Level ▪ Pumps ▪ Control & Monitoring Equipment ▪ Tempe
Slide 40: Trading: Instrumentation & Electrical
Trading Instrumentation & Electrical 40
Slide 41: Trading: Instrumentation & Electrical
Trading Instrumentation & Electrical 41
Slide 42: Trading: Mechanical
Trading Mechanical ELLIOTT EBARA CORPORATION eS LL 0 THE SNIFFERS @J TRILLIUM Realing your Environmental and Sustainability Ambon FLOW TECHNOLOGIES™
Slide 43: Trading: Mechanical
Trading Mechanical ELGi:. #eHIMD KonTRO Marelli Always Better *Sealless Pumps Bombas eo 1 ; jg ww Sta x sScune SPXFLOUW | ae EE yale: gp sas wy rf
Slide 44: Trading: Mechanical
Trading Mechanical CY . NGY sscnimnen & SCHWARZ ANION corendvis me Hoschion
Slide 45: Manufacturing
Manufacturing GAS Arabian Metal Tech Factory 45
Slide 46: GAS Arabian Metal Tech Factory Workshop
Manufacturing – GAS Arabian Metal Tech Factory Workshop Total Land Area: 30,000 M 2 ▪ Manufacturing ▪ Fabrication Facility Capabilities: ▪ Storage ▪ Sand Blasting ▪ Painting and Testing 46
Slide 47: GAS Arabian Metal Tech Factory Approvals
Manufacturing – GAS Arabian Metal Tech Factory Approvals Approved Vendor Approved Vendor 47
Slide 48: Manufactured Products (Aramco approved)
Manufacturing – GAS Arabian Metal Tech Factory Manufactured Products (Aramco approved) ▪ Chemical Injection Skid, Well Tie-Ins App ▪ Chemical Injection Skid, Non-Well Head Tie-Ins ▪ Structural Steel ▪ Spool; Pipe; All Sizes; Flanged; BW; FT ▪ Spool; Pipe; BW; Fabricated, Any Metal ▪ Gas Modular Skid
Slide 49: Joint ventures
Joint ventures 49
Slide 50: Joint ventures: Manufacturing Services
Joint ventures MANUFACTURING SERVICES 50
Slide 51: Joint ventures
Joint ventures Yokogawa Services Elster Instromet Saudi Arabia Saudi Arabia Factory After-sales service, training and life-cycle maintenance for Yokogawa systems and products, as well as construction and installation of electrical and instrumentation systems. Saudi Aramco Approved Vendor Total Land
Slide 52: Elliott GAS Services Saudi Arabia
Joint ventures Area of Expertise: • Engineering Services Elliott GAS Services • Rotor Repair Rerates & Upgrades Saudi Arabia • • Remanufacturing • Repairs After-sales care for Elliott Group products and • Turnarounds • Commissioning equivalents, including repair, re-rating, modification, • Trainings
Slide 53: Service Center
Joint ventures Service Center Total Land Area 6,700 M2 Investment (Facility /Building Cost) SAR 37 Million Offers full range in-shop turbomachinery inspection and repair services for all kinds of: • Single and Multi-stage steam turbines. • Single and Multi-stage steam compressors. • Axial compressor
Slide 54: FS-Elliott Saudi Arabia
Joint ventures FS-Elliott Saudi Arabia FS-Elliott Services Saudi Arabia Full spectrum after-sales service for centrifugal air compressors & plant air packages, including personnel training, inspection, refurbishment, repair, spare parts, overhauling, upgrades and field services. Total Land Area 1,00
Slide 55: Weidmuller Saudi Arabia Factory
Joint ventures Weidmuller Saudi Arabia Factory Saudi Aramco Approved Vendor Electrical and electronic interconnection components and technologies. Areas of Expertise: Stainless steel junction boxes designed and customized to client requirements. 55
Slide 56: Workshop
Joint ventures Workshop Total Land Area 1,500 M2 Investment (Facility /Building Cost) SAR 4.5 Million 56
Slide 57: GAS Vector and TubeFit Engineering
Joint ventures GAS Vector Saudi Arabia TubeFit Engineering Arabian Factory LLC After-sales service and training for Vector Manufacturing and supplying industrial communication products and systems. of various instrumentation fittings and valves. Areas of Expertise: Areas of Expertise: • Fiber optics
Slide 58: Thank You
Thank You UFI.
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