Hamilton, Bermuda (February 27, 2019)
Fourth quarter highlights 2018 – Best operational results since 2015
- Revenue of $233.2 million, an increase of 9% from third quarter.
- EBITDA before exceptional items of $26.9 million, an increase of $10.4 million or 63% relative to Q4 2017.
- EBITDA of $24.3 million, an increase of $9.6 million or 65% relative to Q4 2017.
- EBIT of $10.7 million or 4.6% of revenue.
- Net Interest Bearing Debt reduced to $585.8 million.
John Lechner, CEO Archer comments:
“Archer is pleased to deliver the strongest quarterly operational results since 2015. Overall, 2018 has been a year of growth for Archer, and we ended the year with strong financial performance. I would like to thank all of our employees who have contributed to this success.
Well services increased both revenue and margins in the quarter, materially driven by a record number of plug runs. Fourth quarter revenue for Well services is up 38% compared to the same quarter last year. We view this as a testament to our new product developments, advanced technologies and broader service offerings, combined with improved market conditions.
On October 1, 2018, we started work under the new contract with Equinor for the provision of Platform Drilling Services. We successfully onboarded approximately 400 employees for the four additional active platforms awarded: Gullfaks A, B and C as well as Grane. The increase in active platforms had a material effect on our revenue from this segment in the quarter.
Lastly, Land Drilling continued its improved operating performance in the fourth quarter, delivering strong financial results, with the second quarter in a row with EBITDA margin above 13%.”
Outlook 2019
Archer expects continued growth in 2019 on the back of strong backlog:
- Revenue set to increase 4-6% over 2018;
- EBITDA margin about 10-12%;
- Capex 3-4% of revenue;
- Robust liquidity and strong operational cash flow generation.
A conference call will be held at 08:00 London time, 09:00 Oslo time on February 27, 2019. To listen to the conference call, the following options are available:
A. Webcast
To register for the webcast please go to https://archer.eventcdn.net/q42018
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 2018 Earnings release.”
Participant Telephone Numbers:
| Norway: | +47 2350 0254 |
| UK: | +44 (0)203 194 0544 |
| USA: | +1 855-269-2604 |
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.