Archer Limited · OSL:ARCH

Archer — Q4 2022 Earnings Presentation

23 slides from Archer's earnings presentation, 2023

  1. Slide 1: Dag Skindlo Espen Joranger

    Dag Skindlo Espen Joranger 1

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

    ~] = 7) a _ ) = mer - 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 tha

  3. Slide 3: At a glance

    Ata glance The Well Company $970 million $95 million $2.3+ billion ‘22 revenue Adj. EBITDA ‘22 Contract backlog 50 years @parditarel nerioent er eee experience ocations globally loba!l personnel Carbon neutral in '22 Scope 1 & 2 outside Argentina and Bolivia 1) On each year during 16°18 revenue excl

  4. Slide 4: Q4 Highlights

    A aa Revenue ($m) 24 2022 — Q4 Highlights e Revenue of $264 million, up 10% from last quarter e EBITDA before exceptional items of $29.2 million, up 23% from last quarter e Positive net results for Q4 of $16.4 million and full year 2022 of $9.8 million Q421 Qr22 Q2-22 93-22 WA Reimbursable Ml Operat

  5. Slide 5: Broader portfolio offering

    •    • • • • Broader portfolio Fill obvious offering gaps • Norway USA Increased New Technology • geo. footprint UK UAE

  6. Slide 6: Expands Archer's integrated P&A offering with Baker Hughes coil tubing business

    • Expands well service offering in the UK Baker Hughes coil tubing business Other players 28% • Expands Archer’s integrated P&A offering with 27% Platform operations and well services 22% 23% • Experienced employees & valuable fleet • Strong customer base ✓ ✓ 5 5 5 2 ✓ 1) Closing of the acquisition

  7. Slide 7: Platform Operations: 50% market share in the North Sea

    Q4 2022 — Platform Operations: 50% market share in the North Sea @ 2023 EBITDA Platform operations is brownfield and P&A operation Diverse service offering area + Stable annual cash contribution! of about $40m during the last three years Estimated firm backlog of $1.2bn ($2.8bn including options) +

  8. Slide 8: Well Services: Strong organic growth combined with recent acquisitions

    A 04 2022 Well Services: Strong organic growth combined with recent acquisitions own s . . ow 3 ; 2023e EBITDA Well intervention service and technology, largely within brownfield operations and P&A Share of total + Well services delivers high tech solutions for Ho ae nm ; ensuring safe wells when th

  9. Slide 9: Replacement value, new infrastructure projects

    • • • • • Replacement value New infrastructure projects • ©Archer '23

  10. Slide 10: Financial performance by division

    A Q4 2022 — Financial performance by division Platform Operations Revenues ($m) EBITDA ($m) 140 120.7 118.0 wD 120 1077 103.5 6 100 Wl 3 80 " 60 40 9 20 7 O+ +5 Q1-22 Q2-22 Q3-22 Q4-22 Operational revenue Reimbursable revenue —— EBITDA Land Drilling Revenues ($m) EBITDA ($m) 100 10 80.2 80 S 6 60 4

  11. Slide 11: Archer well-positioned in segments with attractive long-term outlook

    Archer well-positioned in segments with attractive long-term outlook Platform Drilling North Sea / Global Modular Rigs —_ North Sea/ Global Engineering North Sea Ciltools/Wireline Nay and Global offshore Romar / Baker's UK and Global UK Coil Tubing offshore Land Drilling Vaca Muerta LatAm onshore La

  12. Slide 12: Condensed profit & loss

    A Q4 2022 Condensed profit & loss * Total revenue of $264 million in Q4 2022 represent an increase of $12.4 million from same quarter last year, based on increased activity, offset by unfavorablee foreign exchange movements. * EBITDA reported of $27.4 million is an increase of $5.0 million or 22% co

  13. Slide 13: High revenue visibility evidenced by solid backlog coverage

    A o 2022 High revenue visibility evidenced by solid backlog coverage Revenue [lll] Firm Il Options 1,000 900 800 700 600 500 400 300 200 100 $m ‘2 ‘22E ‘23E ‘24E "25E Thereafter 4 Firm revenue backlog of $2.3 billion and additional $2.2 billion in options Considerations * As of Q4'22, the company ha

  14. Slide 14: Financial outlook for 2023

    aS 2022 inancial outlook for 2023 revenue development and distribution 2023e EBITDA estimates: = Constructive increase in global E&P activity driving demand for Archer's services Growth in heavy intervention and P&A market share Operators drilling plans in the North Sea Moderately higher rig utiliza

  15. Slide 15: Appendix

    Appendix 15

  16. Slide 16: Platform Drilling, Modular Rigs & Engineering

    Platform Drilling, Modular Rigs & Engineering Financials Platform Drilling contracted rigs [# of rigs] Revenues ($m) EBITDA ($m) Mo Ue 33 33 33 33 toa 118.0 16 120 7 14 100 e » 20 2 2 80 10 60 8 97.0 6 91.0 40 87.0 4 20 2 oO ° Q1-22 Q2-22 Q3-22 Q4-22 Q1-22 Q2-22 Q3-22 Q4-22 Operational revenue Reimb

  17. Slide 17: Well Services

    Well Services Financials #ofruns Revenues ($m) EBITDA ($m) 70 12 10 60 8 852 50 Y YY, 640 6 wy 631 40 4 491 30 40.6 413 2 20 ° Q1-22 Q2-22 Q3-22 Q4-22 Q1-22 Q2-22 Q3-22 Q4-22 Operational revenue Reimbursable revenue ——EBITDA ™Oiltool runs ™ Wireline runs

  18. Slide 18: Land drilling

    Land drilling Financials Number of active Archer rigs Revenues ($m) EBITDA ($m) 90 10 44 44 42 42 80.2 80 740 8 70 67.2 580 6 34 34 60 dM . 33 33 50 _ ~ Sy 4 . ’ 5 40 2 30 20 ie) Q1-22 Q2-22 Q3-22 Q4-22 Q1-22 Q2-22 Q3-22 Q4-22 — — -EBITDA before excpetionals —— EBITDA ™=Drilling rigs ~™Workover & Pu

  19. Slide 19: Estimated FX effect on revenue and EBITDA from adverse NOK and GBP movement

    +10% -10% Estimated FX effect on revenue from adverse movement in NOK and GBP against USD +4% 01.01.2021 01.07.2021 01.01.2022 01.07.2022 01.01.2023 2021 2022 -10% +8% Estimated FX effect on EBITDA from adverse movement in NOK and GBP against USD +3% 01.01.2021 01.07.2021 01.01.2022 01.07.2022 01.01

  20. Slide 20: Strong underlying growth muted by weaker NOK and GBP

    A Q4 2022 Strong underlying growth muted by weaking NOK and GBP impacting USD reported numbers 2022 revenue grew by 10% adjusted for unfavorable FX movement 2023 revenue mid point projection would have been 10% higher using pre- (using avg. 2021 rates) war exchange rates (2021 rates) +30% Y ] Estima

  21. Slide 21: Quarterly figures in $ million

    (Figures in $ million) Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 21 21 ©Archer 2022

  22. Slide 22: Condensed balance sheet (unaudited)

    )4 2022 - Appendix Condensed balance sheet (unaudited) 2022 31.12.2022 Cash, cash equivalents & restricted cash 655 1043 99.1 108.7 93.0 Accounts receivables 125.6 124.7 135.0 121.3 152.6 Inventories 52.1 52.7 52.9 51.0 EA) Other current assets 30.7 34.9 36.3 S25) 39.0 Investments and loans in assoc

  23. Slide 23: Condensed cash flow statement - last quarters

    Condensed cash flow statement - last 5 quarters (unaudited) sing ion) Q421 Qi22 Q222 Q322 0422 Operating activities 40.0 (8.7) 16.8 247 87 Investing activities (14.3) (7.8) (4.8) (4.3) (26.7) Financing activities 61 52.9 (8.2) (4.4) (3.2) FX effect 0.0 24 (8.9) (6.4) 5.4 Total* 31.8 38.9 G1) 9.6 (15

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