Archer Limited · OSL:ARCH
Archer — Q1 2019 Earnings Presentation
17 slides from Archer's earnings presentation, May 9, 2019
Slide 1: Archer First Quarter 2019
Archer First Quarter 2019 Executive Chairman Kjell-Erik Østdahl and CFO Dag Skindlo 9 May 2019
Slide 2: Disclaimer – forward looking statements
Disclaimer – forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this press release contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “f
Slide 3: Key highlights
Key highlights • Strong financial and operational quarter • Received two separate tenders for Modular Rigs projects in 2020 • Well Services shipped first Mechanical Packer (Mcap) • Land Drilling on track 3
Slide 4: Archer – strong first quarter financial results
Archer – strong first quarter financial results • Revenue of $225.7 million • EBITDA of $25.0 million or 11.1% of revenue, which is an increase of 89% relative to the same period last year. • EBIT of $11.9 million or 5.3% of revenue versus a loss in same period last year • Net Interest Bearing Debt
Slide 5: Platform Drilling & Engineering
Platform Drilling & Engineering Revenue and EBITDA [$m and %] Financial highlights Revenues ($m) EBITDA (%) 150 12% • Good operational performance with 9.4% 101.4 120.3 115.5 10% EBITDA margin 96.0 99.7 100 8% 6% • 20% increase in Revenue compared to Q1 2018 50 4% • 39% increase in EBITDA relative t
Slide 6: Well Services
Well Services Revenue and EBITDA [$m and %] Financial highlights Revenues ($m) EBITDA (%) 40 20% • 20% increase in Revenue compared to Q1 2018 30.4 30 24.7 26.9 26.5 29.7 15% • 80% increase in EBITDA relative to Q1 2018 20 10% • New technology in Oiltools accounts for 16% of 10 5% revenue in the qua
Slide 7: Land Drilling
Land Drilling Revenue and EBITDA [$m and %] Financial highlights Revenues ($m) EBITDA (%) 100 20% • Completed restructuring leading to strong results 89.2 86.2 82.3 79.4 80.4 80 15% • 239% increase in EBITDA relative to Q1 2018 due 60 to strong drilling performance and lower cost base 10% 40 5% • Th
Slide 8: Archer Group – financial highlights first quarter 2019
Archer Group – financial highlights first quarter 2019 Revenue [$m] EBITDA [$m, %] 250 233 30 218 224 226 214 14% 24 25 25 22 200 12% 20 10% 150 13 8% 15 12 100 6% 10 4% 50 5 2% 0 0 0% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Capex [$m] Net Interest Bearing Debt [$m] 14 700 12 620
Slide 9: Condensed profit and loss statement
Condensed profit and loss statement (Figures in $ million) Q4 18 1) Q1 19 2018 1) • First quarter revenue of $225.7 million, a decrease of Operating revenues 212.7 210.3 811.2 3.2% relative to fourth quarter 2018 largely due to less Reimbursable revenue 20.5 15.4 78.4 working days in the quarter and
Slide 10: Condensed balance sheet
Condensed balance sheet (Figures in $ million) 31/12/18 1) 31/03/19 Assets . ASSETS • Total non-current assets increased by $20.9 million due to the Cash, cash equivalents & restricted cash 31.5 32.2 implementation of right of use assets, offset by decrease in value of Accounts receivables 137.0 142
Slide 11: Summary and outlook
Summary and outlook • Operating efficiencies and restructuring efforts completed over the last couple of years is paying dividends – strong quarter with no restructuring costs • Expecting strong stable margin performance going forward, with H2 EBITDA higher than H1 2019 • Reiterate guidance given: •
Slide 12: Appendices
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Slide 13: Segment key financials
Segment key financials Eastern Revenues ($m) EBITDA (%) Hemisphere 200 12.0 % 150.8 145.2 10.0 % 150 120.8 128.3 126.2 8.0 % Platform 100 6.0 % drilling & 4.0 % Engineering 50 2.0 % 0 0.0 % Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Well $m Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Services Revenues 120.8 128.3 126.2 150.8
Slide 14: Condensed profit and loss statement – last 5 quarters
Condensed profit and loss statement – last 5 quarters (Figures in $ million) Q1 18 Q2 18 Q3 18 Q4 18 1) Q1 19 2018 1) Operating revenues 201.6 204.0 192.9 212.7 210.3 811.2 Reimbursable revenue 16.7 20.4 20.8 20.5 15.4 78.4 Total Revenues 218.3 224.4 213.7 233.2 225.7 889.6 EBITDA before exceptional
Slide 15: Condensed balance sheet – last 5 quarters
Condensed balance sheet – last 5 quarters (Figures in $ million) 31/03/18 30/06/18 30/09/18 31/12/18 1) 31/03/19 ASSETS Cash, cash equivalents & restricted cash 50.8 33.2 27.3 31.5 32.2 Accounts receivables 145.6 140.0 124.4 137.0 142.8 Inventories 58.9 57.7 51.8 51.9 52.2 Right of use assets curren
Slide 16: Right of use operating assets-/lease liability - details
Right of use operating assets-/lease liability - details March, 2019 • The company has historically leased some operating March, 2019 Lease assets, office and warehouse facilities and office (Figures in $ million) Right of use assets liability equipment under operating leases. With effect from Opera
Slide 17: Condensed cash flow statement – last 5 quarters
Condensed cash flow statement – last 5 quarters (Figures in $ million) Q1 18 Q2 18 Q3 18 Q4 18 2018 Q1 19 Operating activities (2.6) 4.9 (1.5) 36.1 36.9 4.0 Investing activities (13.2) (5.0) 25.1 (8.6) (1.7) (2.4) Financing activities 0.8 (11.4) (30.3) (15.2) (56.1) (0.8) FX effect (1.9) (6.1) 0.8 (