Slide 1: Second Quarter 2021 results
Second Quarter 2021 results Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 13 August 2021 1
Slide 2: Disclaimer – forward looking statements
Q2 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: Q2 Highlights
Revenue ($m) EBITDA ($m) Q2 2021 250 25 Q2 Highlights 228 21.0 21.2 • Revenue increased by 18.3% from Q2 213 20 19.0 19.2 211 2020 200 193 15.6 • EBITDA of $21.2 million despite 184 15 challenging situation in Argentina due to Covid-19 150 10 • Positive net income of $1.6 million, Q2-20 Q3-20 Q4-20
Slide 4: Backlog additions
Q2 2021 Backlog additions Wireline Land Drilling Oiltools • Archer secured a 5 year frame • Pan American Energy extended • Oiltools was awarded a P&A campaign agreement by ConocoPhillips, with Archer’s contract in southern Argentina for Wintershall in Netherlands option for additional 6 years for 2
Slide 5: Well Services
Q2 2021 Well Services Financials Operations • Revenue increased by $11.2 million or 31.7% from Q1 • Integration of Deepwell progressing well • EBITDA increased by $0.7 million or 10% from Q1, • Successful start-up of Equinor contract during May. Full impact in impacted by start-up cost of new contra
Slide 6: Archer's Wireline division repositioned on the NCS
Q2 2021 Archer ’s Wireline division repositioned on the NCS NOK 3.5 billion of backlog Acquired DeepWell Market leader • Successful commencement of the • Fast tracked acquisition of • Archer established as market Equinor contract with our alliance DeepWell to secure access to leader for mechanical w
Slide 7: Platform Drilling, Modular Rigs & Engineering
Q2 2021 Platform Drilling, Modular Rigs & Engineering Financials Operations • Revenue increased by 0.5% compared to Q1 and by 2.5% • Several performance bonuses achieved in Platform Drilling following YOY successful well delivery • EBITDA decreased by $1.4 million quarter on quarter and • Modular Ri
Slide 8: Land drilling
Q2 2021 Land drilling Financials Operations • Revenue increased 5.4% compared to Q1 and by 53.6% YOY • Complex environment with several disruptions to operation, most notable a major strike with roadblocks during the quarter impacting • EBITDA stable at $3.2 million compared to Q1. Compared to opera
Slide 9: Condensed profit & loss statement
Q2 2021 Condensed profit & loss statement Condensed profit & loss ($ million Q2 2021 Q2 2020 YTD 2021 YTD 2020 Operating revenues 202.2 161.9 396.3 369.5 • Operational revenue of $202.2 million, is an increase of $41.0 Reimbursable revenue 25.8 30.9 45.1 60.3 million or 25% YOY Total Revenues 228.0
Slide 10: Condensed balance sheet
Q2 2021 Condensed balance sheet Condensed balance sheet $ million 30.06.2021 30.12.2020 30.06.2020 Cash and cash equivalents 28.3 41.2 41.2 Restricted cash 18.3 12.4 14.3 Accounts receivables 123.6 109.2 115.4 • Accounts receivables increased by $14.4 million compared to Inventories 54.7 54.2 51.0 y
Slide 11: Summary Q2 2021 and 2021 financial outlook
Q2 2021 Summary Q2 2021 • Increased activity with 18% YOY and delivered positive net income • Gained market leader position on the NCS for Wireline with ConocoPhillips contract and acquisition of DeepWell • Awarded major contract extension for Land Drilling in Argentina with customer planning to inc
Slide 12: Q&A
Q&A 12
Slide 13: Segment key financials
Appendix Segment key financials Eastern Hemisphere Revenues ($m) EBITDA (%) 200 164,2 166,0 178,0 15,0 % 160,2 146,4 150 10,0 % 100 Platform drilling & 5,0 % Engineering 50 0 0,0 % Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 $m Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Well Services Revenues 160.2 146.4 164.2 166.0 178,0 EBI
Slide 14: Condensed profit and loss statement
Appendix Condensed profit and loss statement (Figures in $ million) Q2 20* Q3 20 Q4 20 Q1 21 Q2 21 Operating revenues 161.9 160.2 185.3 194.1 202.2 Reimbursable revenue 30.9 23.3 25.2 19.3 25.8 Total Revenues 192.8 183.6 210.6 213.4 228.0 EBITDA before exceptional items 25.4 22.3 23.3 21.5 22.3 Seve
Slide 15: Condensed balance sheet
Appendix Condensed balance sheet $ million 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 Cash, cash equivalents & restricted cash 55.5 54.6 53.6 45.5 46.6 Accounts receivables 115.4 95.2 109.2 113.8 123.6 Inventories 51.0 53.2 54.2 53.6 54.7 Other current assets 31.7 34.1 28.0 23.4 26.3 Inv
Slide 16: Condensed cash flow statement – last 5 quarters
Appendix Condensed cash flow statement – last 5 quarters (Figures in $ million) Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Operating activities 41.3 10.9 16.1 (4.0) 15.3 Investing activities (8.4) (0.3) (18.3) (3.3) (16.0) Financing activities (85.6) (15.4) (3.9) (3.5) 5.1 FX effect 0.6 4.0 (2.4) (0.4) (0.2) Tot