Archer Limited: Strong first quarter financial performance
Hamilton, Bermuda (May 10, 2023)
First Quarter 2023 Highlights
- Revenue of $267 million, up 22% from the same quarter last year
- Strong EBITDA of $25.2 million, up 55% from the same quarter last year
- Strong cash management contributed to reduced NIBD
- Integrated the P&A specialist Romar-Abrado during the quarter
- Completed the acquisition of Baker Hughes’ UK coil tubing and pumping business
- Completed the refinancing in April
On the strong first quarter, Dag Skindlo, CEO of Archer, comments:
“I am pleased to report strong financial results in the first quarter of the year. We delivered strong performance across all divisions, despite the first quarter historically having lower activity and fewer operating days. Our land drilling division delivered above expectations with additional well bonuses, lower non-productive time, and lower costs. We continue to see increased international demand for well services and we are well underway to meet our overall financial guidance for the year.
We have progressed well on integrating Romar-Abrado into our Well Services division, and we completed the acquisition of Baker Hughes coil tubing and pumping business in the UK. We will see the full financial benefits of the acquisitions from the third quarter onwards. We are excited to engage with new and existing customers and demonstrate how our combined offering can improve well performance.
Yesterday we announced the election of Richard Stables and Arne Sigve Nylund to the board of directors of Archer Limited. Both Arne and Richard bring extensive experience to the board. Arne has a background from management and operations through his 40 years in Equinor while Richard has a background from banking and corporate finance and was engaged as an advisor in the recent refinancing of Archer.
We have completed the refinancing of Archer with a proforma net debt of USD 395 million, equaling an opening leverage of 3.5x based on mid-point guidance of 2023 EBITDA. The new financing matures in 2027, offers competitive cash interest cost estimated at 7.5%, over the period and positions Archer to capitalize on the growing market we see ahead. “
Archer will host a conference call at 1:00 pm CEST on May 10, 2023. To follow the presentation, the following options are available:
A. Webcast
To register for the webcast please go to https://events.q4inc.com/attendee/153304395
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 2023 Earnings Release Call”
Participants dial-in:
Norway: +47 21984292
United Kingdom: +44 1612508206
United States: + 1 5617711427
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.
For additional information please contact:
Dag Skindlo, Chief Executive Officer, Mobile: +47 982 26 624 | Email: [email protected]
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)