Slide 1: Fourth Quarter 2020 results
Fourth Quarter 2020 results Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 25 February 2021 1
Slide 2: Disclaimer – forward looking statements
Q4 2020 Disclaimer – forw ard looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends tha
Slide 3: Q4 Highlights
Revenue EBITDA before exceptionals Q4 2020 240 Q4 Highlights 250 237 30 27.5 28.1 25.4 22.3 23.3 211 200 193 25 184 • Revenue increased by 15% 150 20 15 • Solid quarter with increase in 100 10 EBITDA of $3.5 million compared to 50 Q3 5 0 0 • EBITDA before exceptional items of Q4-19 Q1-20 Q2-20 Q3-20
Slide 4: Platform Drilling, Modular Rigs & Engineering
Q4 2020 Platform Drilling, Modular Rigs & Engineering Financials Operations • Revenue increased by 16% compared to Q3 • Active drilling rigs in the portfolio increased by 3 platforms from Q3 • Additional EBITDA contribution primarily from platform • Modular rigs; drilling − Topaz demobilized after s
Slide 5: Well Services
Q4 2020 W ell Services Financials Operations • EBITDA increased by $0.5 million compared to • Activity picking up in Wireline over the quarter Q3 • Stable level of runs compared to Q3 • EBITDA margin increased by 1.8 percentage • Integrated wireline contract with Equinor will impact results from Q2,
Slide 6: Integrated wireline contract
Q4 2020 In t e g ra t e d w i re l i n e Ar c h e r W L contract Innovative Conveyance and logging solutions Gross contract value Welltec Schlumber ger WL • NOK 2.5 billion ($300m) firm period Pioneers in powered The benchmark in Contract commencement mechanical services advanced logging services •
Slide 7: Land drilling
Q4 2020 Land drilling Financials Operations • Revenue increased 25% • Continued increase in activity level in the quarter as additional rigs are reactivated • EBITDA increased by $2.3 million to $1.1 million in the quarter − Activity in Neuquen (North) approaches pre-covid activity levels • EBITDA b
Slide 8: Archer Sustainability agenda
Q4 2020 AR C H E R S U S TAI N AB I L I T Y Low carbon Resilient Financial Green agenda O&G offering performance energy ▪ Support clients net zero ▪ Approximately 90% of Archer ▪ Continuous positive cash ▪ Review and explore emission objectives by revenue from brownfield flow opportunities developin
Slide 9: Condensed profit & loss statement
Q4 2020 Condensed profit & loss statement Condensed profit & loss Full Full ($ million Q4 19 Q4 20 2019 2020 • Operational revenue of $210.6 million, is a Operating revenues 207.1 185.3 833.6 715.1 decrease of $29.1 million or 12% YOY due to a Reimbursable revenue 32.6 25.2 95.0 108.9 significant dr
Slide 10: Condensed balance sheet
Q4 2020 Condensed balance sheet Condensed balance sheet $ million 31.12.19 30.09.2020 31.12.20 Cash and cash equivalents 31.4 47.4 41.2 • Accounts receivables increased by $14 million Restricted cash 12.7 7.2 12.4 following increased activity Accounts receivables 145.4 95.2 109.2 Inventories 53.0 53
Slide 11: Financial position
Q4 2020 Fi n a n c i a l p o s i t i on NIBD [$m] Liquidity 800 Archer has in 2020; 700 600 • Generated free cash flow 796 500 • Reduced committed credit lines 603 586 582 400 504 • Repaid debt prior to schedule 300 2016 2017 2018 2019 2020 • Extended final maturity of main facilities to 2023 Debt m
Slide 12: Summary Q4 2020 and Financial outlook 2021
Q4 2020 Summary Q4 2020 • Solid quarter with increase in EBITDA • Positive net income • Positive free cash flow • Secured integrated wireline contract with Equinor Financial outlook 2021 • Revenues for 2021 expected to increase moderately from run-rate second half 2020 • EBITDA for 2021 expected 10-
Slide 13: Q&A
Q&A 13
Slide 14: Platform drilling contract backlog
Q4 2020 Platform drilling contract backlog Platform Drilling 2021 2022 2023 2024 Field Operator Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bery l A/B Apache • Leading platform driller in the North Forties A/B/C/D Apache Ithica Energy Sea Alba, Captain Dunlin Alpha Fairf ield • Backed by long te
Slide 15: Segment key financials
Ap p e n d i x Segment key financials Eastern Hemisphere Revenues ($m) EBITDA (%) 200 167,0 167,2 15,0 % 160,2 164,2 146,4 150 10,0 % 100 Platform drilling & 5,0 % Engineering 50 0 0,0 % Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 $m Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Well Services Revenues 167.0 167.2 160.2 146.4 164
Slide 16: Condensed profit and loss statement
Ap p e n d i x Condensed profit and loss statement (Figures in $ million) Q4 19 Q1 20* Q2 20* Q3 20 Q4 20 Operating revenues 207.1 207.6 161.9 160.2 185.3 Reimbursable revenue 32.6 29.5 30.9 23.3 25.2 Total Revenues 239.7 237.1 192.8 183.6 210.6 EBITDA before exceptional items 27.5 28.1 25.4 22.3 23
Slide 17: Condensed balance sheet
Ap p e n d i x Condensed balance sheet $ million 31.12.19 31.03.20* 30.06.20 30.09.20 31.12.20 Cash, cash equivalents & restricted cash 44.1 107.5 55.5 54.6 53.6 Accounts receivables 145.4 150.2 115.4 95.2 109.2 Inventories 53.0 52.0 51.0 53.2 54.2 Right of use assets current - - - - - Other current
Slide 18: Condensed cash flow statement – last 5 quarters
Ap p e n d i x Condensed cash flow statement – last 5 quarters (Figures in $ million) Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Operating activities 47.0 1.6 41.3 10.9 16.1 Investing activities (17.3) (4.5) (8.4) (0.3) (18.3) Financing activities (4.4) 75.8 (85.6) (15.4) (3.9) FX effect (0.2) (9.4) 0.6 4.0 (2.4