Hamilton, Bermuda (February 27, 2018)
Fourth quarter highlights 2017
John Lechner, CEO Archer comments:
“Throughout 2017, Archer had a dedicated focus on cash generation. In the fourth quarter, we delivered strong cash flow through effective operations and improvement in our working capital. This resulted in a reduction in Net Interest Bearing Debt of $21.3 million in the quarter. For the full year 2017, Net Debt was down $193 million, which is a reduction of 24% from end 2016.
Archer’s revenue continued to increase in the fourth quarter, ending at $223.7 million, or 5% higher than the previous quarter. Platform Drilling successfully renewed the contract with Statoil on the Peregrino A and B platforms located offshore Brazil. The extension awarded is the second of the two options included in the original four year contract which commenced in 2009. During 2017, Platform Drilling was able to renew all contracts up for renewal, representing an estimated $260 million of additional backlog.
In Latin America, Land Drilling in DLS North continues to deliver strong operational and financial performance. However, the mobilization costs of rigs in Argentina and Bolivia contributed negatively to our EBITDA during the fourth quarter. EBITDA before exceptional items ended at $16.5 million, a $1.3 million sequential decrease from the previous quarter.”
Dag Skindlo, CFO Archer comments on the IPO of QES:
“The IPO of QES amid large financial market turbulence represents a milestone for Archer. Archer’s share of QES is approximately 28.7%, or $95 million at the IPO price of $10 per share. Archer decided to convert its outstanding debt in QES and invest another $10 million in the IPO as Archer sees great value in the growth story of QES”.
John Lechner, continues:
“On the back of a higher oil price relative to a year ago, we believe that market activity will increase in 2018, albeit at different levels within the segments where Archer operates. Overall, we are aiming for both higher revenue and 1-2% increase in EBITDA margin relative to 2017. We continue to remain committed to de-leveraging and strengthening our balance sheet through strict capital discipline and focus on efficient operations.”
A conference call will be held at 7:00 Houston time, 13:00 London time, 14:00 Oslo time on February 27, 2018. To listen to the conference call, the following options are available:
To register for the webcast please go to https://edge.media-server.com/m6/p/abe2g4rn
B. Conference call
To access the call, which is open to the public, please contact the conference call operator at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time, and ask for the “Archer Fourth Quarter 2017 Trading Update Conference Call.”
Participant Telephone Numbers:
|UK:||+44 (0)330 336 9105|
|Norway:||+47 2100 2610|
The operator will ask for your name, company and the confirmation code. 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.