Slide 1: Archer Q1 2025 results
Archer Q1 2025 results 15 May 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: Revenue, EBITDA, cash contribution and leverage ratio
Revenue EBITDA $m $m CAGR +11% CAGR +24% 1,301 1,300-1,350 155-170 1,169 135 970 117 86 Our products & services Platform Renewable Operations Services ’22 ’23 ’24 ’25G1 ’22 ’23 ’24 ’25G Cash contribution Leverage ratio $m Well Land CAGR +25% Services Drilling 5.3x 100-120 73 2.9x 64 2.6x 2.1x – 2.3x
Slide 4: Q1 Highlights and subsequent events
Revenue ($m) EBITDA ($m) +11% +9% Q1 Highlights 350 343 35 30.9 33.5 308 300 30 Q1 Revenue of $342.5 million; up 11% YOY 250 25 200 20 Q1 EBITDA of $33.5 million, up 9% YOY 150 295 15 260 Quarterly cash distribution to shareholder of $5.5 million 100 10 Awarded 7-year subsea P&A frame agreement with
Slide 5: Archer to pay $5.5 million in cash distribution
Archer to pay $5.5 million in cash distribution in Q2, equal to ~11% annual yield First cash distribution in May Archer with attractive direct yield Cash distribution yield for comparable companies1 May cash distribution Share buybacks Dividends Payout per share: NOK 0.63 per share ~14% Total distri
Slide 6: Archer is positioned in resilient 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 decommissioning Services for exploratory ✓ Services to optimize p
Slide 7: Archer's EBITDA remains robust throughout the market cycles
Archer’s EBITDA remains robust throughout the market cycles Robust historical EBITDA Strong Q1 vs. global oil service majors $m EBITDA Q1 2025 relative performance EBITDA Margin Oil service majors (avg.)1 Archer 155-170 EBITDA YoY-change (Q1 ’25 vs. Q1 ’24) 135 12% -12% 117 10% 10% 10% +9% 9% 10% 9%
Slide 8: Strong market outlook for Archer's P&A services
Strong market outlook for Archer’s P&A services Global offshore decommissioning/P&A market outlook Global offshore decom. spending set to double by 2050 Total offshore decom. spend of $240B to 2050 E&P abandonment costs 2001-2050, $bn E&P abandonment costs 2024-2050, $bn 55 52 UK 50 45 Asia 40 39 ~2
Slide 9: Adding more than $550 million in backlog
Adding more than $550 million in backlog – resilience and visibility Contracts awarded Estimated value1 Comments 7-year subsea P&A frame contract with Equinor • For P&A planning, engineering and execution of 27 subsea wells on Subsea P&A contract $150 million Snorre and Heidrun with Equinor • Frame
Slide 10: Milestone subsea well P&A contract with Equinor
Milestone subsea well P&A contract with Equinor Contract highlights Subsea P&A spending set to more than double Subsea P&A scope a new service line for Archer Global decom expenditures for subsea wells, offshore deepwater ($bn) 2 >2x P&A on 27 subsea wells 7 on Snorre and Heidrun 5 4 7-year frame ag
Slide 11: Estimated $150m contract with Repsol
Estimated $150m contract with Repsol for late life and P&A services Material late life and P&A scope in the UK Adding to Archer’s growing P&A backlog Scope to cover platform drilling, 5-year service contract, facilities engineering, coil tubing, with an additional two-year wireline and downhole tool
Slide 12: Favourable market backdrop in Vaca Muerta
Favourable market backdrop in Vaca Muerta, but activity reduction in the south Land Drilling activity by geography Vaca Muerta – Unconventional Neuquen • Vaca Muerta business accounts for ~55% of revenue and about 85-90% of EBITDA and cash contribution in Land Vaca Muerta South Drilling Revenue spli
Slide 13: Successful debt refinancing at improved terms in Q1
Successful debt refinancing at improved terms in Q1 New $425m senior secured bond Outstanding debt schedule Transaction details Scheduled debt repayments, $m $425m 9.5% fixed Bond issue Coupon Bond maturity in 2030 → 365 Upsized from $400m to $425m due to high demand Five-year term pushing debt matu
Slide 14: Financial guidance for 2025
Financial guidance for 2025 – minor changes to guiding for revenue and capex ‘25 Financial estimates1 Key takeaways $m 1,300-1,350 1,301 • Reiterate our financial guidance for 2025, with some Revenue minor adjustment Low single digit growth • Revenue set to increase by low single digits, following ’
Slide 15: The Well Company
The Well Company I Resilient business model with ~90% of revenues from stable brownfield operations and P&A II Strong and robust EBITDA development throughout the market cycles III Robust and simplified balance sheet following successful $425m bond refinancing IV Initiating shareholder return progra
Slide 16: Appendix
Appendix
Slide 17: Platform Operations
Platform Operations Financials Revenues ($m) EBITDA ($m) • Total revenue decreased by 4% from previous 200 25 quarter, ending at $131 million, which mainly 155 relates to the reimbursable revenue with 142 140 20 150 137 131 limited margins 15 100 • EBITDA of $11.6 million reflects a minor 10 reducti
Slide 18: Well Services
Well Services Revenues ($m) EBITDA ($m) Financials • Revenue of $86.5 million, at same levels as Q1 105 15 2024, but a reduction from previous quarter 100 mainly due to lower reimbursable revenue 95 14 95 90 86 86 13 • EBITDA of $12.1 million, a reduction compared 85 83 12 to same period last year o
Slide 19: Land Drilling
Land Drilling Financials Revenues ($m) EBITDA ($m) • Revenue in the quarter of $102.5 million is moderately up compared to previous quarter. 120 12 97.3 99.2 100.8 102.5 • EBITDA of $9m is up 6% compared to previous 100 10 quarter and 25% compared to same quarter 78.5 80 8 last year. 60 6 • Improved
Slide 20: Renewable Services
Renewable Services Financials • Revenue in the quarter of $22.5 million, up from $16.4 million report in the previous quarter. • EBITDA in the quarter of $2.5 million, is up from $1.6 million reported in previous quarter. • The main activity comes from our geothermal energy activity. Renewables Serv
Slide 21: Condensed profit & loss
Condensed profit & loss ($ million Q1 2025 Q1 2024 Operating revenues 294.3 260.2 Reimbursable revenue 48.3 48.1 • Total revenue of $342.5 million in Q1 2025 represent Total Revenues 342.5 308.3 an increase of $34.2 million from same quarter last 41.2 33.0 EBITDA before exceptional items year, drive
Slide 22: Condensed balance sheet
$ million 31.03.2025 31.12.2024 Condensed balance sheet Cash and cash equivalents 74.8 76.8 • Cash and cash equivalents of $74.8 million, Restricted cash 0.8 3.8 decreased by $2.0 million compared to year Accounts receivables 201.5 187.8 end 2024 Inventories 81.8 75.8 Other current assets 73.2 57.0
Slide 23: Key financials
Key financials Revenue [$m] EBITDA [$m] 349 350 343 38 335 Reimbursable 36.2 36 34.9 Operational revenue 308 309 300 34 33.5 32.8 32 30.9 250 289 295 30 284 260 265 28 200 26 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 NIBD [$m] CAPEX [$m] 20 18.2 18.1 440 433 16.5 420 15 400 392 Pre
Slide 24: Condensed profit and loss statement
Condensed profit and loss statement (unaudited) (Figures in $ million) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Operating revenues 260.2 265.4 283.5 287.9 249.3 Reimbursable revenue 48.1 43.7 51.6 60.4 48.3 Total Revenues 308.3 309.0 335.1 348.3 342.5 EBITDA before exceptional items 32.9 32.2 36.4 40.3 41.2 To
Slide 25: Condensed balance sheet
Condensed balance sheet (unaudited) $ million 31.03.2024 30.06.2024 30.09.2024 31.12.2024 31.03.2025 Cash, cash equivalents & restricted cash 57.8 58.4 58.6 80.6 75.5 Accounts receivables 182.5 173.6 188.2 187.8 201.5 Inventories 72.3 70.6 69.8 75.8 81.8 Other current assets 49.1 56.0 60.3 57.0 73.2
Slide 26: Condensed cash flow statement
Condensed cash flow statement – last 5 quarters (unaudited) (Figures in $ million) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Operating activities 14.3 24.4 19.7 39.4 (13.3) Investing activities (8.6) (23.4) (20.1) (61.9) (11.3) Financing activities (0.6) (0.5) (1.6) 52.2 13.0 FX effect (2.9) - 2.2 (7.6) 6.6 Tot
Slide 27: Archer's capital allocation strategy
Archer’s capital allocation strategy Balance sheet Capex M&A Shareholder returns Strong balance sheet and Capex maintained at Selective accretive Shareholder healthy debt levels moderate levels bolt-on acquisitions returns • Target a long-term leverage • Targeting total capex of 3-4% of • Discipline