Archer Limited · OSL:ARCH
Archer — DNB Oil, Offshore & Shipping Conference 2019
16 slides from Archer's conference presentation, Mar 6, 2019
Slide 1: Archer overview
Archer overview DNB Oil, Offshore & Shipping Conference 2019 6 March 2019
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: A global oil service company with more than 5,000 employees
A global oil service company with more than 5,000 employees Platform Drilling & Land Drilling Well Services Engineering A people business An asset business Technology & services • Operates 45 platforms • Owns and operates 81 • Provides well integrity • Owns and operates 2 land rigs in Argentina and
Slide 4: A global oil service company with more than 5,000 employees
A global oil service company with more than 5,000 employees Platform Drilling & Land Drilling Well Services Engineering 140 12% 120 16% 35 18% 120.3 30.4 97.6 14% 16% 120 10% 100 30 26.5 99.7 14% 97.4 82.3 12% 100 79.4 25 8% 80 22.0 12% 10% 80 20 10% 6% 60 8% 60 15 8% 6% 4% 40 6% 40 10 4% 4% 20 2% 2
Slide 5: Fourth quarter highlights 2018 – Best operating result since 2015
Fourth quarter highlights 2018 – Best operating result since 2015 • Revenue of $233.2 million, up 9% from third quarter. • EBITDA before exceptional items of $26.9 million, up 63% from Q4 2017. • EBITDA of $24.3 million, up 65% from Q4 2017. • EBIT of $10.7 million or 4.6% of revenue. Revenue [$m] E
Slide 6: We delivered on our promises for 2018
We delivered on our promises for 2018 Status All business units in the Eastern Hemisphere experiencing increased 1 demand with combined expected revenue growth of 15% over 2017. 18% above Average EBITDA margin before restructuring expected to improve 1- 2% points 2 2% points over 2017. improvement I
Slide 7: Platform Drilling & Engineering: North Sea market leader
Platform Drilling & Engineering North Sea market leader • Operates and maintains operator Secures production on 45 owned drilling equipment. offshore platforms globally • Engineering services and rental of #1 in Norway drilling tubulars #1 in UK • Long-term contracts and strong cash flow generating
Slide 8: Platform Drilling & Engineering: $1 billion of firm backlog
Platform Drilling & Engineering $1 billion of firm backlog Contract backlog 2019-2021* Nr. of 2019 2020 2021 2022 Country Operator platforms Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Apache 6 Chevron 2 Fairfield 1 Life of Field P&A expected to finish Marathon 2 Shell 2 Shell 1 P&A expected to
Slide 9: Land Drilling: A leading player in the largest unconventional play outside US
Land Drilling A leading player in the largest unconventional play outside US • Leading provider of land drilling and workover services in Argentina and Bolivia. • Strong market position and long-term contracts in the Vaca Muerta play. • Currently ~2100 employees. • Operations split into: - North (Va
Slide 10: Land Drilling: We believe the 2018 operational improvements are sustainable
Land Drilling We believe the 2018 operational improvements are sustainable Leading market share Operational improvement Ambitious goals set by (2018 vs 2017) Argentine Government1) Vaca Muerta Double the oil and 20% ~8% headcount natural gas reduction in Argentina production within five years ~18 %
Slide 11: Well Services: Provides high-end well integrity technologies and services
Well Services Provides high-end well integrity technologies and services Well services is a global business • A global technology provider of tools and equipment for oil & gas wells. Norway UK • Industry leader for gas-tight well Newfoundland Denmark Romania Sakhalin Holland integrity products. Azer
Slide 12: Strong liquidity position and improving credit metrics
Strong liquidity position and improving credit metrics • Main credit facilities mature Q3 2020 with Debt amortization profile [$m] subordinated loan from Seadrill maturing in 800 2021. 700 600 93 • Archer operates well within all covenant 500 requirements including liquidity, EBITDA and 400 300 Cape
Slide 13: Outlook
Outlook • Archer expects continued growth in 2019 on the back of strong backlog: • Revenue set to increase 4-6% over 2018 - Eastern Hemisphere set to further increase 15-20% from 2018 • EBITDA margin about 10-12% • Capex 3-4% of revenue • Robust liquidity and strong operational cash flow • Beyond 20
Slide 14: Appendix
Appendix Private and Confidential 14
Slide 15: Associated investments: QES and C6 Technologies
Associated investments QES and C6 Technologies • QES is a growth-oriented provider of diversified • C6 Technologies is an oilfield technology oilfield services focused on U.S. unconventional company offering new solutions for well resources. intervention and conveyance: • Operate via four segments:
Slide 16: Archer is positioned in segments with positive outlook in rebounding markets
Archer is positioned in segments with positive outlook in rebounding markets Business units Key drivers Key region Outlook* Platform Drilling • Lowest Northcost Sea North Sea production drilling for platforms with Platform Drilling & drilling facilities Engineering North Sea Engineering • P&A market
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