Slide 1: Q1 2024 results
Q1 2024 results May 7, 2024
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: Track record of growth in positive oil and gas market
Revenue ($m) EBITDA ($m) 1,169 +12% 117 Track record of growth in 936 970 +16% positive oil and gas market 824 85 86 76 Midpoint 2024 guidance $1,169m $117m $2.5bn 2023 revenue 2023 EBITDA reported Contract backlog ’20 ’21 ’22 ’23 ’20 ’21 ’22 ’23 ’24G Platform Operations Land Drilling Well Services
Slide 4: Continued strong financial performance in Q1
Revenue ($m) +16% 350 Continued strong financial 300 +22% 267 308 performance in Q1 250 219 200 150 Revenue of $308 million; up 16% YOY 260 227 100 196 Adjusted EBITDA of $32.9 million; up 20% YOY 50 EBITDA of $30.9 million, up 23% YOY 0 Q1-22 Q1-23 Q1-24 Reimbursable Operational revenue Cash contri
Slide 5: Acquisition of Vertikal Service
Acquisition of Vertikal Service • Archer have agreed to acquire 65% of the shares in Vertikal Service AS • Vertikal’s business aligns with Archer’s core capabilities while opening avenues for growth in renewable sectors such as wind and hydropower. • The combination of Archer’s offshore construction
Slide 6: $4 billion in total backlog
$4 billion in total backlog Grew firm order backlog by 80% during the quarter $m 4.0 • 4-year platform drilling contract extension for the operation of 9 installations in the North Sea for Equinor (reduction 3.5 from currently 12 installations) 3.0 • 2-year platform drilling contract with Trident En
Slide 7: Market outlook
Market outlook Well-positioned in segments with attractive long-term outlook Business Area Archer sentiment1 Outlook Selected recent developments Strong growth as we expand service offering and growing P&A market ✓ TAQA P&A project with MDR Topaz in exectution • Production focused with intervention
Slide 8: Strong market outlook for Archer's P&A service the next 30 years
Strong market outlook for Archer’s P&A service the next 30 years Global offshore decommissioning market outlook (incl. P&A) Global offshore decom. spending set to double to 2050 Total offshore decom. spend exceeding $240B to 2050 E&P abandonment costs 2011-2050, $bn 58 E&P abandonment costs 2024-205
Slide 9: Summary of business segment and drivers
Summary of business segment and drivers Well Services Business characteristics Financials and outlook ✓ Extensive light and heavy well ✓ Strong EBITDA growth 2017-2023 with intervention portfolio CAGR of 29%, of which 26% organic ✓ Broadest tools portfolio for P&A ✓ Continued growth in International
Slide 10: Well Services
Well Services Revenues ($m) EBITDA ($m) Financials +91% 105 15 • Operational revenue increased by 10% 100 over the quarter, ending at $68.8 14 95 million 13 90 86 • Compared to same quarter last year, 85 83 12 EBITDA grew by 91% 80 76 75 75 11 • EBITDA increased by 16% from 70 69 10 previous quarter
Slide 11: Platform Operations
Platform Operations Financials Revenues ($m) EBITDA ($m) 160 151 15 • Operational revenue moderately increased, 139 142 ending at $111.6 million 140 130 118 120 10 • EBITDA of $12.0 million in-line with the same 100 quarter last year, and with a reduction of $2.9 80 60 million compared to Q4 mainly
Slide 12: Land Drilling
Land Drilling Financials Revenues ($m) EBITDA ($m) 100 9 • Revenue increased moderately to $78.5 million 88.2 80.2 80.0 78.2 78.5 8 compared with previous quarter 80 7 • EBITDA increased by $1.7 million, ending at $7.2 60 6 million in the quarter on the back of strong 5 40 operational performance 4
Slide 13: Condensed profit & loss
Condensed profit & loss ($ million Q1 2024 Q1 2023 • Total revenue of $308.3 million in Q1 2024 represent an increase of $41.7 million from same quarter last Operating revenues 260.2 226.9 year, driven by growth in all business areas Reimbursable revenue 48.1 39.7 Total Revenues 308.3 266.6 • Adjust
Slide 14: Condensed balance sheet
$ million 31.03.2024 31.12.2023 Condensed balance sheet Cash and cash equivalents 57.4 52.1 • Cash and cash equivalents of $57.4 million, Restricted cash 0.4 3.5 increased by $5.3 million compared to year end Accounts receivables 182.5 183.8 2023 Inventories 72.3 75.0 Other current assets 50.9 40.4
Slide 15: Financial outlook for 2024 – continued growth and reduced leverage
Financial outlook for 2024 – continued growth and reduced leverage 2024 Guidance (unchanged) Key financial takeaways Figures in USD million ▪ Continued EBITDA growth of between 15% and 20% for Archer in 2024 134-140 ▪ Well Services continue with organic EBITDA growth above 20% EBITDA 116.8 ▪ Platfor
Slide 16: Appendix
Appendix
Slide 17: Key financials
Key financials Revenue [$m] EBITDA [$m] 350 35 Reimbursable 295 303 305 308 30.0 30.7 30.9 30.9 300 267 Operational revenue 30 250 25.2 200 25 150 20 250 248 252 260 100 227 15 50 0 10 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 NIBD [$m] CAPEX [$m] 395 24,7 400 392 25 388 387 385 38
Slide 18: Condensed profit and loss statement (unaudited)
Condensed profit and loss statement (unaudited) (Figures in $ million) Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Operating revenues 226.9 249.8 248.1 252.4 260.2 Reimbursable revenue 39.7 45.1 54.6 52.7 48.1 Total Revenues 266.6 294.9 302.7 305.1 308.3 EBITDA before exceptional items 27.4 31.9 32.3 33.4 32.9 Se
Slide 19: Condensed balance sheet (unaudited)
Condensed balance sheet (unaudited) $ million 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 Cash, cash equivalents & restricted cash 198.2 73.1 76.3 55.6 57.8 Accounts receivables 147.1 161.2 173.4 183.8 182.5 Inventories 62.1 68.5 71.8 75.0 72.3 Other current assets 41.3 36.4 36.8 38.7 49.
Slide 20: Condensed cash flow statement – last 5 quarters (unaudited)
Condensed cash flow statement – last 5 quarters (unaudited) (Figures in $ million) Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Operating activities 30.2 1.7 0.2 18.7 14.3 Investing activities (17.7) (10.9) 2.6 (22.7) (8.6) Financing activities 94.7 (114.8) 0.5 (19.3) (0.6) FX effect (2.0) (1.2) - 2.6 (2.9) Total*
Slide 21: Archer's renewables ambitions
Iceland Drilling Archer’s renewables ambitions Geothermal drilling District heating Carbon storage delivers high delivers shallower deliver wells for temperature deep wells for district carbon storage in Archer combats emissions Energy Transition initiatives geothermal wells heating basalt Very limi