Archer Limited: Continued strong financial performance in first quarter
Hamilton Bermuda (May 7th, 2024)
First Quarter 2024 Highlights:
- Revenue of $308 million, up 16% YOY
- Adjusted EBITDA of $32.9 million, up 20% YOY
- EBITDA of $30.9 million, up 23% YOY
- Cash contribution of $21.8 million, up 39% YOY
- Grew backlog by 80% during the quarter, from USD 1.5 bn to 2.5 bn
- Improved adjusted net income in Q1 of $2.6 million compared to Q1 2023
- Leverage ratio reduced to 2.8 from 2.9 at year-end
- Completed the acquisition of 65% of the shares in Vertikal Service AS
- Executed share consolidation
CEO Dag Skindlo comments:
“I am pleased to report strong first-quarter financial results. We have performed well across all segments, with a solid revenue increase internationally. Increased activity and revenue resulted in an EBITDA growth of 23% from the same quarter last year. The first quarter underpins our ability to execute on our strategy of international growth with margin expansion, and is the direct result of the dedication and hard work of our team.
In the first quarter, Archer secured more than $1 billion in additional firm backlog, with large contracts on the Norwegian shelf as well as in the UK, Brazil, and Argentina. Consequently, Archer’s order backlog increased by 80% to approximately $2.5 billion in the quarter, providing strong visibility for 2024 and beyond.
This provides visibility and stability while improving our growth outlook. Our market view remains positive with our resilient cash flow profile and continued growth. We will focus on reducing our financial leverage in the coming years, adding financial flexibility and creating shareholder value,”
Archer maintains its estimate of 15-20% EBITDA growth in 2024 as well as a further reduction of leverage ratio to between 2.4 and 2.7 at year-end 2024.
Subsequent event
Archer completed the acquisition of 65% of the shares in Vertikal Service AS during May 2024. Vertikal Service AS provides inspection, installation, and maintenance services to energy customers in the oil and gas, offshore and onshore wind, and hydro power segments. The acquisition brings synergies for Archer and opens up new avenues for growth.
Additionally, the company executed a share consolidation in May 2024, which implies that 25 Archer shares are consolidated into one.
CONFERENCE CALL TODAY AT 09:00 CEST
Archer will host a conference call at 9:00 am CEST on May 7, 2024. To follow the presentation, the following options are available:
A. Webcast
To register for the webcast please go to https://events.q4inc.com/attendee/229675986
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 First Quarter 2024 Earnings Release Call”.
Participants dial-in:
- Norway: +47 815 03 308
- United Kingdom +44 20 3936 2999
- United States +1 646 787 9445
- Germany +49 32 221098334
- Access code: 194230
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.
About Archer Limited:
Archer Limited is a leading global provider of drilling and well services, offering a comprehensive range of solutions to the energy industry. With a focus on innovation, safety, and customer satisfaction, Archer Limited is dedicated to delivering superior results for its clients worldwide.
For more information, please visit www.archerwell.com or contact:
Espen Joranger, Chief Financial Officer | Mobile: +47 982 06 812 | Email: [email protected]
Joachim Houeland, Manager Treasury & Investor Relations | Mobile: +47 482 78 748 | Email: [email protected]
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
