Slide 1: Third Quarter 2021 results
Third Quarter 2021 results Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 5 November 2021
Slide 2: Disclaimer – forward looking statements
Q3 2021 Disclaimer – forward 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 that
Slide 3: Q3 Highlights
Revenue ($m) Adjusted EBITDA ($m) Q3 2021 Q3 Highlights 250 243 25 23.3 23.5 22.3 22.3 228 21.5 • Revenue continue to increase in third 213 211 20 quarter on the back of increased activity 200 in Eastern Hemisphere 184 15 • EBITDA before exceptional items increased by $1.2 million over the quarter 1
Slide 4: Well Services
Q3 2021 Well Services Financials Operations • Solid increase in Revenue of 32% from Q2, primarily • Successful ComTrac operation on Visund reducing carbon explained by the full quarter of new Wireline contracts footprint by 960 tons compared to traditional wireline and DeepWell • First full quarter
Slide 5: Oiltools annual growth of 19% since 2017, fueled by innovation and geographical expansion
Q3 2021 Oiltools annual growth of 19% since 2017, fueled by innovation and geographical expansion Oiltools journey Global reach ~40 countries “Archer continue to invest in innovative technologies, products and solutions in combination with international expansion” 5
Slide 6: Platform Drilling, Modular Rigs & Engineering
Q3 2021 Platform Drilling, Modular Rigs & Engineering Financials Operations • Revenue reduced by 4.0% compared to previous quarter, • Modular rig Emerald with solid well delivery, achieving performance following the lower number of platform drilling contracts bonus of $1 million in the quarter in th
Slide 7: Archer demonstrate P&A success on Gyda
Q3 2021 Archer demonstrate P&A success on Gyda P&A campaign OneArcher Gyda • P&A scope 32 wells • OneArcher project including Platform Drilling, • Gyda in production since 1990 Engineering, Wireline and Oiltools • Pulled tubing/casing > 190,000 m • A total of 32 wells drilled, including 8 tie- • Pro
Slide 8: Land drilling
Q3 2021 Land drilling Financials Operations • Revenue increased 10% compared to Q2 • Drilling activity flat, and lower than pre-covid 19 levels in Argentina • EBITDA, negatively impacted by severance payments, cost • Macro-environment in Argentina remains challenging as country for idle personnel an
Slide 9: Condensed profit & loss
Q3 2021 Condensed profit & loss ($ million Q3 2021 Q3 2020 YTD 2021 YTD 2020 Operating revenues 206.1 160.2 602.4 529.8 • Operational revenue of $206.1 million represent an increase of $45.2 million or 28% YOY Reimbursable revenue 36.6 23.3 81.8 83.7 Total Revenues 242.8 183.6 684.2 613.5 • EBITDA o
Slide 10: Condensed balance sheet
Q3 2021 Condensed balance sheet $ million 30.09.2021 30.06.2021 30.09.2020 Cash and cash equivalents 26.6 28.3 47.4 • Accounts receivables only increased by $1.4 million, despite the Restricted cash 10.0 18.3 7.2 7% increase in revenue. Accounts receivables 125.0 123.6 95.2 Inventories 53.4 54.7 53.
Slide 11: Summary Q3 2021 and 2021 financial outlook
Q3 2021 Summary Q3 2021 • Increased activity with increased revenue of 32% YOY • Well Services increased revenue by 39% YOY with healthy growth in Wireline . Well Services set to benefit from international growth as oil companies are increasing spending • Argentina expected to continue with low dril
Slide 12: Q&A
Q&A 12
Slide 13: Segment key financials
Appendix Segment key financials Eastern Hemisphere Revenues ($m) EBITDA (%) 200 164.2 166.0 178.0 187.6 13% 146.4 12% 150 11% 100 Platform drilling & 10% Engineering 50 9% 0 8% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 $m Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Well Services Revenues 146.4 164.2 166.0 178.0 187.6 EBITDA
Slide 14: Condensed profit and loss statement
Appendix Condensed profit and loss statement (Figures in $ million) Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Operating revenues 160.2 185.3 194.1 202.2 206.1 Reimbursable revenue 23.3 25.2 19.3 25.8 36.6 Total Revenues 183.6 210.6 213.4 228.0 242.8 EBITDA before exceptional items 22.3 23.3 21.5 22.3 23.5 Sever
Slide 15: Condensed balance sheet
Appendix Condensed balance sheet $ million 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Cash, cash equivalents & restricted cash 54.6 53.6 45.5 46.6 36.6 Accounts receivables 95.2 109.2 113.8 123.6 125.0 Inventories 53.2 54.2 53.6 54.7 53.4 Other current assets 34.1 28.0 23.4 26.3 32.6 Inv
Slide 16: Condensed cash flow statement – last 5 quarters
Appendix Condensed cash flow statement – last 5 quarters (Figures in $ million) Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Operating activities 10.9 16.1 (4.0) 15.3 1.5 Investing activities (0.3) (18.3) (3.3) (16.0) (9.0) Financing activities (15.4) (3.9) (3.5) 5.1 (1.8) FX effect 4.0 (2.4) (0.4) (0.2) (0.9) Tot