Hamilton, Bermuda (August 14, 2020)
Second quarter 2020 highlights
- Revenue of $192.8 million
- Reduced activity following Covid-19
- EBITDA before exceptional items of $25.4 million
- Refinanced completed with robust liquidity
- Net interest bearing debt reduced to $520 million
- Awarded modular rig contract for Topaz
Dag Skindlo, CEO of Archer, comments:
“Archer’s operational and financial results were solid in the second quarter. Despite being negatively impacted by the Covid-19 pandemic and low oil price, our financial performance was better than we expected in the beginning of the quarter. We are also pleased to report positive net income on a YTD basis despite the market turbulence.
I am proud of all Archer employees around the world, who showed commitment and dedication in difficult times with lockdowns and working from home. The solid operational performance is primarily due to our ongoing operation in the North Sea including contribution from our modular rigs this quarter. The reduction in activity is predominantly related to our land drilling operations in Argentina, where the government-imposed lockdown has significantly impacted our ability to operate.
Market conditions will remain volatile going forward. We will continue to monitor the development of the pandemic and are prepared to swiftly adapt further measures to ensure the safety of our colleagues, customers and stakeholders, as well as to adjust our cost base and investments to safeguard our liquidity”.
Archer financial outlook for 2020 improved
Despite the significant market uncertainty, we currently estimate the following for 2020:
- Revenues expected 15-18% lower than in 2019
- Capex expected at about 3% of revenue
- Net interest bearing debt estimated at $515-520 million end of 2020
For additional information please contact:
Espen Joranger, Chief Financial Officer
Mobile: +47 982 06 812 | Email: espen.joranger@archerwell.com
Joachim Houeland, Corporate Treasurer
Mobile: +47 482 78 748 | Email: joachim.houeland@archerwell.com
In connection with the earnings release, a presentation will be held at 9:00 am CET on August 14, 2020.
To follow the presentation, the following options are available:
A. Webcast
To register for the webcast please go to https://archer.eventcdn.net/2020Q2/
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 Second Quarter 2020 Earnings Release”
Norway: +47 23 96 36 88
UK: +44 333 300 9034
USA: + 1 833 526 8347
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.