Slide 1: Q4 2024 Trading Update
Archer Q4 2024 Trading Update Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 30 January 2025
Slide 2: Disclaimer – forward looking statements
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 are “fo
Slide 3: Agenda
1 Introduction Agenda 2 Market overview 3 Recent acquisitions 4 Business segments 5 Outlook and guidance 3 ©Archer ‘25
Slide 4: At a glance
At a glance Revenue EBITDA $m $m CAGR +14% CAGR +24% The Well Company 1,400-1,450 155-170 1,301 1,169 135 970 117 86 ’22 ’23 ’24 ’25G ’22 ’23 ’24 ’25G Pro forma3 $1.4bn $156m 2.3x Reported $1.3bn $135m 2.6x Cash contribution1 Leverage ratio2 ‘24 Revenue ‘24 EBITDA ’24 Leverage ratio $m CAGR +25% 100
Slide 5: Record Q4
Revenue ($m) +14% +11% Record Q4 1 500 1 301 350 305 349 1 169 300 1 000 250 Q4 Revenue of $349 million; up 14% YOY 200 Q4 EBITDA before exceptional $40.3 million, up 21% YOY 150 289 1 098 252 500 977 Record Q4 EBITDA of $36.2 million, up 17% YOY 100 50 2024 EBITDA of $134.8 million, up 15% YOY 0 0
Slide 6: Agenda
1 Introduction Agenda 2 Market overview 3 Recent acquisitions 4 Business segments 5 Outlook and guidance 6 ©Archer ‘25
Slide 7: Archer is positioned in resilient brownfield and energy transition market segments
Archer is positioned in resilient brownfield and energy transition market segments Main market exposure: ~90% of Archer revenue Brownfield operations Energy Transition Greenfield operations Renewables Late life production Well P&A and decom Archer’s role Services for exploratory wells Increase lifet
Slide 8: Solid spending outlook for Archer’s brownfield services in core markets
Solid spending outlook for Archer’s brownfield services in core markets E&P brownfield spending in key Archer markets Comments $bn North Sea1 US GoM Brazil offshore Main services within ‘25E-’30E: brownfield, which is less Shelf (<125m depth) sensitive to the oil price 20% ~$600bn 80% Deepwater (>12
Slide 9: Strong market outlook for Archer’s P&A services
Strong market outlook for Archer’s P&A services Global offshore decom. spending set to double to '50 Total offshore decom. spend of $240bn to '50 E&P abandonment costs '01-'50, $bn E&P abandonment costs '24-'50, $bn 55 50 52 45 40 39 39 ~2x 36 30 29 30 20 19 18 16 15 5 3 ’01-’05 ’06-’10 ’11-’15 ’16-
Slide 10: Production & drilling in Vaca Muerta set to grow from infrastructure investments
Production & drilling in Vaca Muerta set to grow from infrastructure investments Oil export capacity in Vaca Muerta to increase through infrastructure projects1 Comments kb/d • New legislation is opening up for multi-billion ~1,500 USD investments in pipeline expansions, increasing O&G capacity Vaca
Slide 11: Investments in gas pipeline and LNG to drive drilling and well service activity in Argentina
Investments in gas pipeline and LNG to drive drilling and well service activity in Argentina Argentina’s gas pipeline network Gas pipeline capacity is expanding Gasoducto ▪ ~$800m gas pipeline reversion project, finished in 2024 Norte ▪ Vaca Muerta to supply gas to Northern Argentina and to Brazil,
Slide 12: Geothermal market is expected to grow materially
Geothermal market is expected to grow materially Geothermal wells to be drilled Geothermal energy spending Growth drivers of geothermal power # of wells drilled and completed for geothermal Global expenditures on geothermal plants ($bn), power (in thousand), Rystad Rystad Energy transition Geotherma
Slide 13: Agenda
1 Introduction Agenda 2 Market overview 3 Recent acquisitions 4 Business segments 5 Outlook and guidance 13 ©Archer ‘25
Slide 14: Long track record of executing accretive acquisitions and driving further growth
Long track record of executing accretive acquisitions and driving further growth Acquisitions since start of Q3 ‘221 Estimated payback time of 3 years2 M&A focus areas Strengthened presence ~3 years in GoM by acquiring Disciplined and accretive M&A WFR $90-95m Q4 ‘24 Increased ownership in Iceland D
Slide 15: Agenda
1 Introduction Agenda 2 Market overview 3 Recent acquisitions 4 Business segments 5 Outlook and guidance 15 ©Archer ‘25
Slide 16: Well services: Strong organic growth combined with synergetic acquisitions
Well services: Strong organic growth combined with synergetic acquisitions High-end well intervention services and technology Strong EBITDA growth over time ▪ High-end solutions ensuring well performance to clients globally EBITDA ▪ Leading offering within well P&A services Recent ▪ Strong EBITDA gr
Slide 17: Well Services
Well Services Revenues ($m) EBITDA ($m) Financials +24% • Record revenue of $95 million, up $15 million 105 15 from last quarter 100 95 14 95 • EBITDA of $14.6 million, increased by $2.8 90 86 13 million compared to Q3 85 83 12 80 80 • 21.5% EBITDA margin1 76 75 11 75 71 70 69 10 65 65 65 62 63 9 60
Slide 18: Platform Operations: Leading platform drilling service provider in the North Sea
Platform Operations: Leading platform drilling service provider in the North Sea Platform Operations is production and late life operation Diverse service offering ▪ North Sea and Brazil focused operation based on long-term contracts with operators Platform Operation ▪ Close to 50% market share for
Slide 19: Platform Operations
Platform Operations Financials Revenues ($m) EBITDA ($m) • Total revenue decreased by 12%, ending at 200 25 $137 million, as we operated 2 fewer rigs 151 155 compared to Q3 142 140 20 150 137 15 • EBITDA of $12.8 million reflects a reduction 100 compared to Q3 due to additional cost linked 10 to sta
Slide 20: Land Drilling: Growing and cash positive drilling business
Land Drilling: Growing and cash positive drilling business A leading land drilling provider in Vaca Muerta Financial profile ▪ Among the leading providers of land drilling and workover services in Argentina EBITDA ▪ Self-sufficient and cash positive business $m 39 ▪ Market improving on the back of n
Slide 21: Land Drilling
Land Drilling Financials Revenues ($m) EBITDA ($m) • Revenue moderately increased by 2% over the quarter, to $100.8 million +73% 120 12 97.3 99.2 100.8 • EBITDA increased by 4% compared to Q3, and by 100 10 73% compared to Q4 2023, ending at $9.6 million 78.2 78.5 80 8 in the quarter on the back of
Slide 22: Renewables
Renewables Financials • Revenue contribution of $16.4 million in Q4 2024, primarily from Iceland Drilling. • EBITDA margin of 10% resulted in EBITDA of $1.6 million in Q4 2024 Renewables service offerings • Service offering with geothermal energy, carbon storage, wind and hydropower Geothermal Carbo
Slide 23: Agenda
1 Introduction Agenda 2 Market overview 3 Recent acquisitions 4 Business segments 5 Outlook and guidance 23 ©Archer ‘25
Slide 24: Delivered as promised for 2024
Status Delivered as promised for 2024 1 EBITDA 2024 at $135 mill (15% higher than 2023) (Guided 15-20% growth) 2 Pro forma EBITDA at USD 156 million (Guided USD 155-160 million) Capex 4.8% of revenue 3 (Guided 4-5% of revenue) 4 Leverage ratio at 2.6 (pro forma 2.3) (Guided between 2.4 and 2.7 by en
Slide 25: Strong growth in EBITDA and cash contribution expected in ‘25
Strong growth in EBITDA and cash contribution expected in ‘25 ‘25 Financial guidance1 Key takeaways $m 1,400-1,450 • Second half of ‘25 to be stronger than first half, due to seasonal activity and more calendar days Revenue 1,301 • Renewable Services is launched as a new reported division 8 - 12% gr
Slide 26: Appendix
Appendix
Slide 27: Key financials
Key financials Revenue [$m] EBITDA [$m] 349 350 335 38 Reimbursable 36.2 36 34.9 Operational revenue 305 308 309 300 34 32.8 32 30.9 30.9 250 289 30 284 260 265 252 28 200 26 Q4-23 Q1-24 Q2 24 Q3 24 Q4 24 Q4-23 Q1-24 Q2 24 Q3 24 Q4 24 NIBD [$m] CAPEX [$m] 24.7 25 400 391 392 386 385 382 20 18.2 18.1