Archer Limited · OSL:ARCH
Archer — Q3 2023 Earnings Presentation
18 slides from Archer's earnings presentation, Nov 3, 2023
Slide 1: Q3 2023 results
Q3 2023 results November 3, 2023 Dag Skindlo, Chief Executive Officer Espen Joranger, Chief Financial Officer
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: Record financial performance in Q3
Record financial performance in Q3 Revenue of $303 million; up 26% YOY Adjusted EBITDA of $32.3 million; up 37% YOY EBITDA of $30.7 million, or 10.1% of revenue EBIT-margin of 5.5%, totaling $16.6 million On track to meet upper range of our financial guidance for 2023 Adjusted net income of $ 3.7 mi
Slide 4: Well Services
A Well Services Revenues ($m) — sees co) Financials 85 9 14 + Revenue increased by 8% over the 80 quarter, ending at $82.9 million 13 75 + EBITDA increased by 5% from previous 70 12 quarter, to $13.9 million 65 ul + EBITDA margin, excluding 60 10 reimbursables of 22% ~ 9 + Best quarterly EBITDA from
Slide 5: Platform Operations
A Platform Operations _ Financials Revenues ($m +7% — EBITDA ($m) 150 [ 4 16 + Revenue increased by 7% over the 130.2 co mn quarter, ending at $139.0 million 12 * EBITDA increased by 46% from 100 10 previous quarter, to $14.0 million 8 6 * Revenue and EBITDA positively ED 86.6 931 961 eos A impacted
Slide 6: Archer uniquely positioned with a combination of drilling and a broad well services offering
Archer uniquely positioned with a combination of drilling and a broad well services offering for production and decommissioning of wells Archer with extensive experience and holds the most advanced portfolio of P&A tools in the industry 49 2 3 37 12 22 24 23 16 25 4 35 29 46 Source: Rystad Energy (a
Slide 7: $32B in North Sea decom before 2040! North Sea P&A market supports long term growth
$32B in North Sea decom before 2040! North Sea P&A market supports long term growth e Decom activity in the North Sea will be a strong foundation for Archer’s activity and growth in the next 20-30 years e Archer uniquely positioned for P&A and decom of wells, offering both drilling and well services
Slide 8: Land Drilling
A Land Drilling Revenues ($m) 100 {oe 80,2 80,2 80,0 80 74,0 60 40 20 fe) Q3-22 Q4-22 Q1-23 Q223 Q3-23 Operational revenue = EBITDA Number of active Archer rigs 50 44 44 43 44 43 40 30 20 10 10 10 10 " fe) Q3-22 Q4-22 Q1-23 Q2:23 Q3-23 Workover & Pulling units Drilling rigs EBITDA ($m) Financials +
Slide 9: Land Drilling - option for value creation
Land Drilling - option for value creation Increased drilling activity required for production growth in Vaca Muerta * Production scenario to reach 1 million bpd by 2030 as outlined requires significant increase in drilling activity in Vaca Muerta * The combination of investments in new infrastructur
Slide 10: Condensed profit & loss
Condensed profit & loss * Total revenue of $302.7 million in Q3 2023 represent an increase of $62.5 million from same quarter last year, driven by growth in all business areas * Adjusted EBITDA margin of 10.7% ¢ EBITDA of $30.7 million is an increase of $7.8 million or 34% compared to Q3 2022 * EBIT
Slide 11: Condensed balance sheet
A $ million aoa Supa Condensed balance sheet Cash and cash equivalents 758 82.1 . . ane Bacttibied cack 05 109 Cash and cash equivalents of $75.8 million Accounts receivables 173.4 152.6 . ee . ines _ ee Sec ae Giffen arent assets ea ae implementation of a guarantee for employee Investments and loan
Slide 12: Deleverage through growth, equity issuance and positive cashflow
A LTMEBITDA [$m] Deleverage through growth, equity issuance and positive cashflow +32% 130 M 120 12 121 * Steadily declining net interest- bearing debt and net leverage 100 90 aa re 113 ° Demonstrates the company’s 70 o 3 95 ability to de-leverage . * Consistently decreasing net Q322 Q422 Qr23 Q2-23
Slide 13: 2023e guidance
% ▪ 2022 2023e ▪ ▪ ▪ 30 2022 2023e 13 All guidance numbers estimates assumes stable USD/NOK and GBP/USD
Slide 14: Appendix
Appendix
Slide 15: Key financials
Key financials 2 Reimbursable Operational revenue 550 500 450 400 350 300 250 200 4; Prepaid debt fees NIBD 303 \ 2 Revenue [$m] 267 295 264 ; WB 240 VY te Wi We Z 210 219 227 250 0322 0422 «01230223 NIBD[Sml Q3-23 488 608 388 395 Wh: 487 505 387 367 Q322 04-22) QI23- 223 Q3-23 35 30 18 16 14 12 10
Slide 16: Figures in $ million by quarter
(Figures in $ million) Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 16
Slide 17: Condensed balance sheet (unaudited)
Condensed balance sheet (unaudited) Cash, cash equivalents & restricted cash Accounts receivables Inventories Other current assets Investments and loans in associates Property, plant and equipment, net Right of use assets Goodwill Other non-current assets Total assets Current portion of interest-bea
Slide 18: Condensed cash flow statement - last quarters (unaudited)
Condensed cash flow statement - last 5 quarters (unaudited) (Figures in $ million) Q3 22 Q422 Q123 Q223 Q3 23 Operating activities 247 87 30.2 17 02 Investing activities (4.3) (26.7) (17.7) (10.9) 26 Financing activities (4.4) (3.2) 947 (114.8) 05 FX effect (6.4) 5.4 (2.0) (1.2) 5 Total* 9.6 (15.8)