Hamilton, Bermuda (November 25, 2022)
Third Quarter 2022 Highlights
- Revenue of $240 million
- EBITDA before exceptional items of $23.7 million
- Strong cashflow reducing NIBD by $21 million
- Awarded new Equinor scope valued at $200 million
- Awarded a five-year platform drilling contract extension valued at $50 million
- Acquired 50% of renewable energy service company Iceland Drilling (closed November 16th)
Dag Skindlo, CEO of Archer, comments:
“We are pleased to have delivered a strong quarter, increasing our underlying quarterly EBITDA by 13%. Absent the unfavorable development of NOK and GBP in the quarter, our underlying EBITDA is estimated to have increased by 18%. The improvement is largely driven by a record quarter for our Well Services division with a third quarter EBITDA-contribution of $11.5 million.
Operating cashflow was very strong in the quarter, and we reduced our net interest-bearing debt by $21 million compared to Q2.
With the investment in international geothermal drilling and well service company Iceland Drilling, which closed on November 16th, Archer is entering a new chapter in our sustainability strategy. Geothermal energy is a renewable energy source that offers a stable base load and has direct overlap and synergies with Archer’s core services.
We reconfirm our guidance for the year, despite the weakening in European currencies. Looking beyond 2022, we remain optimistic as to the market activity and fundamentals for Archer. We believe demand recovery and the focus on energy security and diversification will have positive implications for energy investment over the next few years. Based on our backlog, our clients’ activity plans, and a supportive macro environment we see 2023 EBITDA 15-20% above 2022 levels and a continued strengthening outlook thereafter.”
For additional information please contact:
Espen Joranger | Chief Financial Officer | Mobile: +47 982 06 812 | Email: espen.joranger@archerwell.com
Joachim Houeland | Manager Treasury & Investor Relations | Mobile: +47 482 78 748 | Email: joachim.houeland@archerwell.com
Q3 Presentation
In connection with the earnings release, a presentation will be held at 9:00 am CET on November 25, 2022.
To follow the presentation, the following options are available:
A. Webcast
To register for the webcast please go to https://streams.eventcdn.net/archer/2022q3/
B. Conference call
To access the call, which is open to the public, please dial in at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time, and ask for the “Archer third quarter 2022 earnings release call”
Participants dial-in:
Norway: 81 503 308
United Kingdom: 020 3936 2999
United States: +1 646 664 1960
All other locations: +44 20 3936 2999
Participant Access code: 262965
The operator will ask for your name and company. Following the presentation there will be a Q&A session. Information on how to ask questions will be given at the beginning of the Q&A session.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act