2025
Archer Norge ASAnnual Report
Table of Contents
Board of Director's Report 1
Report of Independent Auditors 8
Consolidated Statements of Operations 11
Consolidated Balance Sheet 12
Consolidated Statements of Cash Flows 13
Notes 14
Board of Director's Report
Business Overview
About Archer Norge AS and the Archer Norge Group
Archer Norge AS (the "Company") was established in 2007, and its registered address is in Sandnes. The Company owns directly and indirectly the following subsidiaries (the "Subsidiaries"); Archer AS (Norwegian), Archer Oiltools AS (Norwegian), Archer Consulting AS (Norwegian), Archer Wind AS (Norwegian), Archer Well Connection AS (Norwegian), Archer Well Machining AS (Norwegian) Archer Poland Sp.zo.o. (Polish), Ziebel US Inc., (American) DLS Archer Ltd. S.A. (Argentinean), DLS Sada S.A. (Argentinean) and DLS Argentina Fluidos S.A. (Argentinean). In addition, Archer Norge AS owns 65% of Vertikal Service AS (Norwegian, consolidated), 60% of Archer Elemental Norway AS (Norwegian, non-consolidated), 30% of Archer Well Oil and Gas Services LLC (UAE, non-consolidated) and 20% of dSolve AS (Norwegian, non-consolidated). The Company together with the Subsidiaries (the "Archer Norge Group") constitute the basis for the consolidated financial statement herein.
The Archer Norge Group is part of the wider Archer group, which is constituted by Archer Limited and its direct and indirect subsidiaries ("Archer"). Archer provides drilling and well services to the global energy industry employing close to 4,500 globally. Archer operates in over 40 countries, providing sustainable high-quality services and innovative technology to optimize Archer's customer's energy solutions. Archer is publicly traded on the Oslo Stock Exchange under the ticker ARCH. Archer's main operations currently take place in the major basins within Europe, Asia Pacific, North and South America and Archer is expanding throughout the Middle East, and West Africa.
The Archer Norge Group offers services within platform operations, land drilling and well services. The platform operation services performed by the Archer Norge Group includes platform drilling and engineering. The land drilling services include drilling rigs, pullover units and workover units, while the well services include oiltools and wireline.
Further information about the services provided by the Archer, and the Archer financials, can be found in the annual report (the "Archer Annual Report") available on the Archer webpage; https://www.archerwell.com.
Investments during 2025
Set out below is an overview of material investments which have been made by the Company since 31 December 2024:
Acquisition of Wellconnection Norway AS and Well Machining AS
In June 2025, Archer AS agreed to acquire Well Machining AS and Wellconnection Norway AS (together "Wellconnection") from Wellconnection Group AS, an unrelated third party. Wellconnection provides Inspection, Maintenance and Repair (IMR) services within Platform Operations and has historically supported Archer's Platform Operation division. The acquisition strengthens continuity of critical IMR services and enhances Archer's integrated offering through inspection, maintenance, repair and machining of drilling equipment, delivered through a centralized, one-stop-shop service model focused on efficiency, reuse and reduced environmental impact.
Refinancing
In February 2025, the Group successfully completed a refinancing through the issuance of a $425 million senior secured bond with maturity in February 2030. The bond carries a fixed coupon of 9.5% per annum and was issued by Archer Norge AS, an indirect subsidiary of Archer Limited. The net proceeds from the bond issue were used to refinance existing debt and for general corporate purposes.The refinancing strengthened the Group's capital structure, extended debt maturities and enhanced financial flexibility, providing a stable platform to support future operations, investments and shareholder distributions.
Subsequent events
On 7 January 2026, Archer announced the award of an integrated plug and abandonment ("P&A") contract with Equinor for 30 subsea wells in Norway. The firm contract term is 3 years, and includes 2 options of 2 years each, with an estimated total contract value of up to $140 million. Approximately 50% of the contract value relates to services delivered by Archer's alliance partners.
On 10 March 2026, Archer announced the extension of a wireline contract for an additional three years in Norway.
On 27 April 2026, Archer was awarded a three-year contract extension by Equinor ASA for the provision of wireline and intervention services on the Norwegian Continental Shelf.
Outlook
The outlook for the Archer Norge Group is aligned to that of Archer. The demand for the Group's services is driven by operator activity levels within drilling, well services, and late-life field operations. In the medium to long term, demand is influenced by the global energy transition, while in the short to medium term it remains subject to cyclical variations in oil and gas markets, including commodity price levels, capital allocation priorities, and broader macroeconomic conditions.
Archer shares the view that global energy consumption is expected to continue to grow, with oil and gas remaining an important part of the energy mix for decades as the energy transition progresses. Offshore and onshore producing reserves are expected to remain critical to future energy supply and energy security, supporting continued demand for Archer's service offerings. The Group's core activities are primarily focused on the brownfield segment of the oil and gas value chain, which is generally less volatile than greenfield developments and characterized by production drilling, well intervention, and plug and abandonment (P&A) activity.
While macroeconomic uncertainty, volatile oil prices, and with trade and tariff developments continue to present challenges for the energy sector and oilfield services industry, Archer expects operators in the near term to maintain a strong focus on production-related activity in existing fields, both offshore and onshore. Over time, the number of production facilities in mature regions such as the North Sea is expected to decline, resulting in a structural shift from exploration and development towards late-life operations, P&A, and decommissioning. The pace and magnitude of the transition from hydrocarbons to renewable energy sources remain uncertain and dependent on regulatory, technological, and economic factors.
At the same time, the energy transition is creating new market opportunities for Archer. The Group is advancing its OneArcher operating model and leveraging its market position and integrated service offering to capture a significant share of the substantial P&A and decommissioning activity expected in the North Sea and other mature offshore basins over the coming decades. Archer's ownership interest in Iceland Drilling provides exposure to the geothermal drilling market and operational synergies with the Group's land drilling and well services capabilities.
Within the Land Drilling division, Archer continues to position itself as a preferred drilling contractor in the Vaca Muerta shale oil and gas formation in Argentina. Although the operating environment in Argentina has been challenging in recent years due to macroeconomic instability and capital restrictions, ongoing infrastructure development and regulatory initiatives support a more constructive medium-term outlook for activity in the basin. Portfolio adjustments have been undertaken to focus the business on scalable, higher-return drilling operations.
Strategy
The strategy for the Archer Norge Group is aligned to that of Archer. The Group's strategy is to deliver better wells and be the supplier of choice for drilling services, well intervention, and plug and abandonment. This is achieved through continuous improvement in service quality, operational efficiency, and safety performance, supported by skilled personnel who demonstrate the Group's values and commitment to excellence.
Archer seeks to deliver sustainable, long-term profitable growth by leveraging its core drilling and well expertise across resilient brownfield oil and gas markets while selectively expanding into energy transition-related services, including geothermal energy, carbon capture and storage, wind, and hydropower. The Group will continue to pursue economies of scale, selectively strengthen its geographical footprint, and develop proprietary technologies and integrated service offerings that enhance customer value and reinforce Archer's competitive position.
Financial Review
Change in accounting principles
Reimbursable Revenues
Effective from 1 January 2025, the Archer Norge Group has changed its accounting policy for reimbursable revenues. Reimbursable revenues comprise costs incurred by the Group on behalf of customers, which are subsequently reimbursed at cost without mark-up.
Based on a reassessment of the underlying contractual terms and the Group's role in these arrangements, management has concluded that the Group does not bear the primary risks and rewards related to these costs and acts solely as an intermediary between supplier and customer. In accordance with NGAAP and generally accepted principles for gross versus net presentation, such transactions should be presented on a net basis to reflect their economic substance.
Previously, reimbursable revenues were presented gross in revenue, with corresponding reimbursable costs included in operating expenses. From 2025, reimbursable revenues are presented net, with reimbursements offset against the related reimbursable costs in the income statement.
Comparative figures for 2024 have been restated accordingly (netting reimbursable of NOK 1,661.1 million) to reflect this change in accounting principle. Consequently, the 2024 figures presented in this financial review deviate from those previously reported for that year.The change has no impact on operating profit, net profit, or equity, but improves the comparability and transparency of the Group's revenue presentation.
Cash Flow Statement - Reclassification
In addition, the Group has changed the presentation of certain cash flows in the cash flow statement. Funding provided to other group companies that is long-term in nature is now classified as investing activities.
Previously, repayments related to such funding were presented under financing activities, primarily as "repayment of loans to group companies." Following a review, management concluded that these cash flows relate to long-term financial investments in group companies rather than to changes in the Group's external financing. To better reflect the nature of the transactions and ensure a consistent classification, these cash flows are now presented as investing activities. Accordingly, repayments amounting to NOK 342.6 million in 2024 have been reclassified from financing activities to investing activities for the group. For the parent company Archer Norge AS repayments of NOK 150.8 million has been reclassified.
Interest calculated and capitalised to the loan balance, and subsequently settled together with the related loan repayment, has been reclassified and presented on a combined basis in the cash flow statement. As a result, an amount of NOK 148.7 has been reclassified from operating activities to investing activities for Archer Norge Group and Archer Norge AS.
The reclassification represents a change in presentation only and has no impact on net profit or total cash flows, but affects the allocation between investing and financing activities in the cash flow statement.
Revenue
Revenue for the Archer Norge Group for the year ended 31 December 2025 amounted to NOK 7,592.1million, compared to NOK 7,516.2 million for the restated 2024 figures. Revenue development reflects stable activity levels across core service lines, with reimbursable revenues netted in accordance with the updated accounting principle.
Expenses and operating result
Total expenses, including reimbursable expenses and depreciation, amounted to NOK 7,210.9 million in 2025, compared to NOK 7,193.6 million for the restated 2024 figures. Employee benefit expenses and depreciation increased in line with activity levels, while other operating expenses were reduced compared to the prior year.
Operating income for 2025 amounted to NOK 381.3 million, compared to NOK 322.6 million for 2024 figures.
Financial items and result for the year
Net financial costs amounted to NOK 442.9 million in 2025, compared to NOK 431.8 million in 2024.
The net loss for 2025 amounted to NOK 78.4 million, compared to a net loss of NOK 103.7 million for the restated 2024 figures.
The board proposes the following allocation of the year's profit:
The Board proposes that the net loss for the year of NOK 78.4 million be covered by transferred from other equity.
Transferred from other equity NOK 78.4 million
Total allocated in 2025 NOK 78.4 million
Balance sheet
Total assets amounted to NOK 7,872.6 million at 31 December 2025, compared to NOK 8,438.9 million at 31 December 2024. The decrease primarily reflects lower cash balances and changes in working capital.
Total cash and bank deposits amounted to NOK 191.2 million at 31 December 2025, compared to NOK 524.0 million at the end of 2024.
Total current liabilities amounted to NOK 3,115.2 million at 31 December 2025, compared to NOK 3,229.8 million at 31 December 2024. Total non-current liabilities amounted to NOK 4,543.1 million, compared to NOK 4,890.4 million in 2024, and consisted primarily of bond debt.
Cash flows
Cash flows for the year resulted in a net cash outflow, primarily driven by foreign exchange effects, payments related to the refinancing completed during the year, and funding provided to group companies.
In NOK millions | 2025 | 2024 |
Net cash provided by operating activities | (24.0) | 562.8 |
Net cash used in investing activities | (384.7) | (463.0) |
Net cash provided by/(used in) financing activities | 81.3 | 106.4 |
Cash and cash equivalents, including restricted cash at the beginning of the year | 524.0 | 315.1 |
Cash and cash equivalents, including restricted cash, at the end of the year | 191.2 | 524.0 |
Cash flow from operating activities decreased in 2025 to an outflow of NOK 24.0 million, compared with an inflow of NOK 562.8 million in 2024. The deterioration mainly reflects foreign exchange effects and cost related to refinancing.
Cash flow from investing activities totalled outflow of NOK 384.7 million in 2025 compared to a cash outflow of NOK
463.0 million in 2024.
In 2025 cash outflow from financing activities amounted to NOK 81.3 million, compared to a cash flow in 2024 of NOK
106.4 million.
Health, Safety and Environmental
The approach towards HSE for the Archer Norge Group is aligned to that of Archer. Archer's HSE philosophy is to establish and maintain an incident-free workplace where accidents, injuries or losses do not occur. Safety is one of our key values. The value is embedded in the way we work in compliance with our procedures, with the authority to 'stop work' if safety is compromised, planning before we act, evaluating performance to ensure we improve, and maintaining a positive working environment.
The main element in the Archer 2025 HSE plan has been the further follow-up of the Archer safety culture program; The big 5 & the broken window. Via different initiatives during the year, Archer reinforced the message in these two programs. The Big 5 is an Archer initiated safety culture program, the focus for the program is the personal motivation each of us must stay incident free. The main theme is to stay incident free so that we can go back home and do what we love the most. The Big 5, are each employee's most important reasons to stay safe at work. The question we ask is, how will a serious injury impact your life and your Big 5.
For the Archer Norge Group, the number of accidents at work that led to absence amounted to 0.73 per 200,000 man-hours in 2025, compared to 0.36 in 2024. In total there were 7 reportable absenteeism injuries in 2025 compared to 7 in 2024.
Absenteeism
Average sickness absence varies between companies from 0.9% to 13.2%. There is lower sickness absence where the employees have the option of a home office due to work tasks and where there are geographical differences.
Sustainability
The Archer Norge Group's approach to sustainability is aligned with that of Archer. Archer's Annual Report 2025 incorporates its sustainability statement, which has been prepared in compliance with the requirements of the EU Corporate Sustainability Reporting Directive (CSRD). The disclosures are prepared in accordance with the European Sustainability Reporting Standards (ESRS). The sustainability disclosures enable the Group to identify, manage and report on material ESG factors relevant to its industry, and provide investors, banks and other stakeholders with consistent, comparable and decision-useful non-financial information. Further information is available in the sustainability section of the Annual Report 2025, available on Archer's website: https://www.archerwell.com/
Social Governance
The offshore oil and gas industry has traditionally been male dominated. Of the Archer Norge Group's 3,354 employees as of 31 December 2025, 7% are women and 93% men. The Company has a goal of increasing the proportion of women among its employees. Both the board and the Company's management are aware of societal expectations for measures to promote equality in the business and the board. The Company and its Subsidiaries uses various schemes to retain and promote employees of both sexes. Such arrangements are flexible working hours, the possibility of part-time work, redeployment and less physical work during pregnancy, liberal maternity leaves. Equality is an important part of the employment process. The purpose of the Discrimination Act is to promote equality, ensure equal opportunities and rights and to prevent discrimination on grounds of gender, pregnancy, leave at birth or adoption, care duties, ethnicity, religion, outlook on life, functional impairment, sexual orientation, gender identity and gender expression and combinations of these bases. The Company and its Subsidiaries works actively, purposefully, and according to plan to promote the law's purpose within the business. The Company's and its Subsidiaries' objectives, measures and results are dealt with in more detail in Archer Annual Report, available on the webpage.
Transparency act
Archer respects and acknowledges the principles of fundamental human rights and decent working conditions as defined in the Norwegian Transparency Act ("NTA"). Archer Norge AS's assessments in accordance with the requirements of the NTA for 2025 will be made available on the Company's website when it is approved prior to June 30, 2026, in compliance with the requirements of the NTA. The 2024 assessment is available on our website.
Risk factors
The Archer Norge Group's operations and financial position are subject to a number of risk factors. The risk factors described below should be read in conjunction with the Risk factors section included in the annual report of Archer Limited, which provides a more comprehensive and exhaustive description of the risks applicable to the Archer Group as a whole.
Market Risk
The Archer Norge Group's business depends on the level of activity of oil and gas exploration, development and production in the North Sea and internationally, and in particular, the level of exploration, development and production expenditures of the Archer Norge Group's customers. The North Sea is a mature oil and natural gas production region that has experienced substantial seismic survey and exploration activity for many years. Because a large number of oil and natural gas prospects in this region have already been drilled, additional prospects of sufficient size and quality could be more difficult to identify in the future. The decrease in the size of oil and natural gas prospects and a decrease in production may result in reduced drilling activity in the North Sea. As a significant portion of the Archer Norge Group's business is conducted in the North Sea, such decrease may reduce the demand for the Archer Norge Group's services, which would adversely affect the Archer Norge Group's business, results of operations, cash flows, financial condition and prospects. However, the energy transition and the permanent abandonment of existing fields and wells will mitigate some of the risk in the short to medium term. The risk for the Archer Norge Group's business is the timing of when the decline in development and production of oil and gas in the North Sea and Internationally are materialising and when the Archer Norge Group experiences uptick in the volume of permanent abandonment and decommission. Further, although the pace and magnitude of the demand for a shift from hydrocarbons to renewable
energy sources is uncertain and difficult to predict, such energy transition could lead to a decline in the demand for the Archer Norge Group's services and thus negatively affect the Archer Norge Group, and there can be no assurance that the Archer Norge Group will be able to successfully adapt to such energy transition.
The demand for the Archer Norge Group's drilling and well services is adversely affected by declines in exploration, development and production activity associated with depressed oil and natural gas prices. Historically, oil and gas prices have been highly volatile and subject to large fluctuations in response to relatively minor changes in the supply of and demand for oil and gas, market uncertainty and a variety of other economic and political factors, as seen in connection with the COVID-19 pandemic, the war in Ukraine and in Iran. Lower oil prices typically result in significant reductions in capital expenditure budgets, cancellation or deferral of projects and reductions in discretionary expenditures. Certain development projects could also become unprofitable as a result of price declines, which could in turn result in the Archer Norge Group postponing or cancelling a planned project or, if it is not possible to cancel the project, carrying out the project with negative economic impact. In addition, the Archer Norge Group may face property impairments if prices fall significantly. However, higher prices do not necessarily translate into increased drilling activity since clients' expectations about future commodity prices typically drive demand for the Archer Norge Group's services. As such, no assurance can be given that oil prices will remain at levels which will enable the Archer Norge Group to do business profitably or at levels that make it economically viable to produce from certain wells and any material decline in such prices could result in a reduction of net production volumes and revenue and a decrease in reserves and in the valuation of exploration, appraisal, development and production properties.Additionally, adverse changes to commodity prices could reduce the Archer Norge Group's ability to refinance outstanding indebtedness in the event lenders or investors reduce access to liquidity in response to such adverse changes. Consequently, changes in oil and gas prices may adversely affect the Archer Norge Group's business, results of operations, cash flow, financial condition and prospects.
Financial Risk
The Archer Norge Group is exposed to several financial risk factors in the ordinary course of its business, including credit risk, interest rate risk and currency risk. The Archer Norge Group's revenues are largely generated in Norwegian kroner and Argentine pesos, while its interest-bearing debt is predominantly denominated in US dollars, resulting in exposure to foreign exchange fluctuations.
Liquidity risk is managed at group level within the Archer Group. The Board assumes that the Archer Norge Group will be able to obtain liquidity support from the Archer Group if required. Archer Norge AS is one of several guarantors under the Archer Group's overall financing arrangements. As part of these arrangements, the shares in Archer Norge AS, as well as the shares in its subsidiaries Archer Oiltools AS and Archer AS, are pledged as security in favour of the lenders. The senior secured bonds are issued by Archer Norge AS and form part of the overall financing of the Archer Group.The financial covenants under these financing arrangements are measured at Archer Group level. Consequently, a failure by the Archer Group to comply with the applicable financial covenants could have a material adverse effect on the financial position, results of operations and liquidity of the Archer Norge Group, irrespective of Archer Norge AS's standalone financial performance.
Operational Risk
Substantially all of the Archer Norge Group's operations are subject to hazards that are customary for exploration and production activity, including blow outs, reservoir damage, loss of well control, cratering, oil and gas well fires and explosions, natural disasters, pollution and mechanical failure. Any of these risks could result in damage to or destruction of drilling equipment, personal injury and property damage, suspension of operations, or environmental damage, and may subject the Archer Norge Group to claims and litigation.
To the extent that the Archer Norge Group is unable to transfer risks such as the above-mentioned to customers by contract or indemnification agreements, the Archer Norge Group generally seeks protection through customary insurance to protect its business against these potential losses. However, there is no assurance that such insurance or indemnification agreements will adequately protect the Archer Norge Group against liability from all of the consequences of the hazards and risks described above. The occurrence of an event for which the Archer Norge Group is not fully insured or indemnified against, or the failure of a customer or insurer to meet its indemnification or insurance obligations, could result in substantial losses.
The Archer Norge Group's land drilling subsidiaries provide drilling and workover services to operators in Argentina, and these operations represent a significant portion of the Archer Norge Group's total revenues. Argentina's has in the past defaulted on its sovereign debt, and from time-to-time imposed capital restrictions, both leading to a challenging situation for the oil and gas sector in the country, including the oil service industry. How the government
of Argentina invests in the energy sector, makes changes to employment and labour legislation, and formulates policy around taxation, currency control and exchange, national debt repayment and commodity pricing could all have a significant effect on the Archer Norge Group's business in Argentina.
Going Concern
Joachim Houeland (Chairman)
The Board of Directors confirms their assumption of the Group as a going concern for the foreseeable future, being a period of not less than 12 months from the date of this report. This assumption is based on the liquidity position of the Archer Group in general and the Archer Norge Group in particular, forecasted operating results for the Archer Group in general and the Archer Norge Group in particular, the debt maturity being extended to 2030 following the refinancing in 2025 and the market outlook for the energy service sector as at December 31, 2025. The Board believes the annual report provides a fair presentation of the Group's assets and debt, financial position and financial performance.
Sandnes April 28, 2026
Espen Joranger (Director/Managing Director)
The Board of Archer Norge AS
Einar Aage Vae (Director)
Report of Independent Auditors
To the General Meeting of Archer Norge AS
Independent Auditor's Report
Opinion
We have audited the financial statements of Archer Norge AS, which comprise:
the financial statements of the parent company Archer Norge AS (the Company), which comprise the balance sheet as at 31 December 2025, the statements of operations and statements of cash flows for the year then ended, and notes to the financial statements, includinga summary of significant accounting policies, and
the consolidated financial statements of Archer Norge AS and its subsidiaries (the Group), which comprise the balance sheet as at 31 December 2025, the statements of operations and statements of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion
the financial statements comply with applicable statutory requirements,
the financial statements give a true and fair view of the financial position of the Company as at 31 December 2025, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and
the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2025, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Information
The Board of Directors and the Manag ing Director (management) are responsible for the information in the Board of Directors' report. The other information comprises information in the annual report, but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors' report.
In connection with our audit of the financial statements, our responsibility is to read the Board of Directors' report. The purpose is to consider if there is material inconsistency between the Board of Directors' report and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors' report otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors' report. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors' report
is consistent with the financial statements and
contains the information required by applicable statutory requirements.
Pricewaterh ou seCoopers AS, org .no.: 987 009 713 MVA, Stats aut oriserte revisorer og m edlemm er av D en norske Revisorforenin g Advokatfl rm aet Pricewaterhouse Coop ers AS, Org .n o. : 988 371 084 MVA , Medlem mer av Advokatforeningen. advokatfl rmaet@pwc.com PwC Tax Services AS, Org .no. : 962 066 321 MVA, A ut orisert regnskap sforersel skap, Medlem av Re gnsk ap Norge
Kanalsletta 8, Postb oks 8017, NO-4068 Stavang er, T: 02316 (+47 952 60 000) https://www.pwc.n o
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. For further description of Auditor's Responsibilities for the Audit of the Financial Statements reference is made to: https://revisorforeninqen.no/revisionsberetninqerStavanger, 28 April 2026 PricewaterhouseCoopers AS
Gunnar Sletteba
State Authorised Public Accountant (This document is signed electronically)
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Consolidated Statements of Operations
Archer Norge AS | (In NOK millions) | Archer Norge Group | |||
2025 | 2024 | Note | 2025 | 2024 | |
Revenues | |||||
1,008.2 | 893.0 | Operating revenues | 7,560.1 | 7,445.5 | |
- | - | Reimbursable revenues | 30.2 | 28.7 | |
- | - | Other operating income | 1.9 | 42.0 | |
1,008.2 | 893.0 | Total Revenues | 2,3 | 7,592.1 | 7,516.2 |
Expenses | |||||
523.9 | 482.5 | Employee benefits expense | 4 | 3,572.4 | 3,488.2 |
- | - | Cost of goods | 1,280.0 | 831.8 | |
66.4 | 28.3 | Depreciation and amortisation | 7,8 | 360.7 | 324.0 |
429.6 | 356.3 | Other operating expenses | 3,4 | 1,997.7 | 2,549.6 |
1,019.9 | 867.2 | Total Expenses | 7,210.9 | 7,193.6 | |
(11.8) | 25.8 | Operating Income | 381.3 | 322.6 | |
Financial items | |||||
434.9 | 492.5 | Interest income | 3 | 363.4 | 445.7 |
(547.9) | (690.1) | Interest expenses | 3 | (559.5) | (674.3) |
(2.7) | (5.5) | Impairment financial items | 9 | - | (5.5) |
14.1 | 18.2 | Share of results in associated companies | 9 | 1.6 | 18.2 |
2.4 | 246.1 | Other financial items | 5 | (248.4) | (215.8) |
(99.2) | 61.2 | Total Financial items | (442.9) | (431.8) | |
(110.9) | 87.0 | (Loss) / Income from continuing operations before taxes | (61.7) | (109.2) | |
(35.1) | 17.1 | Income tax expense | 6 | 16.8 | (5.5) |
(75.8) | 70.3 | (Loss) / Income from continuing operations | (78.4) | (103.7) | |
(75.8) | 70.3 | Net (Loss) / Income | (78.4) | (103.7) | |
- | - | - Attributable to non-controlling interest | 5.1 | (2.3) | |
- | - | - Attributable to controlling interest | (83.5) | (101.4) |
Consolidated Balance Sheet
Archer Norge AS (In NOK millions) Archer Norge Group
Dec. 31, 2025 | Dec. 31, 2024 | Note | Dec. 31, 2025 | Dec. 31, 2024 | |
- | - | Goodwill | 18 | 59.4 | 47.4 |
- | - | Intangible Assets | 7 | 123.4 | 57.4 |
114.1 | 78.9 | Deferred tax asset | 6 | 244.5 | 257.6 |
152.4 | 181.2 | Property plant and equipment, net | 8 | 1,455.7 | 1,391.4 |
2,696.8 | 2,545.0 | Investments in subsidiaries | 9 | - | - |
3,710.9 | 3,339.3 | Loans to related parties long term | 12 | 2,957.0 | 2,762.6 |
39.8 | - | Investments in associated companies | 9 | 63.1 | 21.9 |
9.9 | 26.3 | Other receivables | 126.1 | 130.3 | |
6,723.9 | 6,170.7 | Total Fixed Assets | 5,029.1 | 4,668.4 | |
- | - | Inventories | 10 | 348.7 | 377.4 |
- | - | Trade receivables | 974.9 | 943.2 | |
581.5 | 1,664.7 | Other receivables related parties | 12 | 1,045.9 | 1,713.0 |
51.7 | 92.4 | Other receivables | 16 | 282.8 | 212.6 |
84.6 | 460.2 | Cash and bank deposits | 13 | 191.2 | 524.0 |
717.8 | 2,217.3 | Total Current Assets | 2,843.5 | 3,770.3 | |
7,441.6 | 8,388.0 | Total Assets | 7,872.6 | 8,438.9 | |
1,849.4 | 1,923.4 | Shareholders' equity | 206.9 | 316.5 | |
- | - | Non-controlling interest | 7.4 | 2.3 | |
1,849.4 | 1,923.4 | Total Equity | 14 | 214.3 | 318.7 |
- | - | Badwill | 18 | 19.7 | 25.1 |
4,222.7 | 4,644.0 | Liabilities to financial institutions | 11 | 4,489.7 | 4,836.7 |
33.7 | 28.5 | Liabilities to related parties long term | 11 | 33.7 | 28.5 |
4,256.4 | 4,672.6 | Total Non-current Liabilities | 4,543.1 | 4,890.4 | |
165.3 | - | Liabilities to financial institutions | 11 | 165.3 | - |
786.1 | 1,395.5 | Liabilities to related parties | 12 | 760.8 | 1,158.9 |
76.9 | 66.6 | Trade creditors | 797.2 | 795.3 | |
- | - | Tax payable | 6 | 1.1 | - |
79.1 | 72.4 | Public duties payable | 463.7 | 469.5 | |
228.5 | 257.6 | Other current liabilities | 17 | 927.2 | 806.2 |
1,335.8 | 1,792.1 | Total Current Liabilities | 3,115.2 | 3,229.8 | |
7,441.6 | 8,388.0 | Total Equity and Liabilities | 7,872.6 | 8,438.9 |
The Board of Archer Norge AS, Sandnes April 28, 2026
Espen Joranger (Director/Managing Director)
Joachim Houeland (Chairman)
Einar Aage Vae (Director)
Consolidated Statements of Cash Flows
Archer Norge AS (In NOK millions) Archer Norge Group
2025 | 2024 | 2025 | 2024 | ||
(110.9) | 87.0 | Net (loss)/profit from continuing operations | (61.7) | (109.2) | |
- | - | Taxes paid | 6 | (5.9) | (9.3) |
Adjustment to reconcile net loss to net cash provided by operating activities | |||||
65.9 | 28.3 | Depreciation and amortisation | 7,8 | 360.7 | 324.0 |
(108.2) | - | Impairment of investments | - | - | |
1.8 | 1.0 | Share-based compensation expenses | 2.8 | 1.3 | |
- | - | (Gain)/loss on assets disposals | (14.4) | (10.9) | |
(14.1) | (357.5) | Group contribution recognized as income | - | - | |
(0.1) | (18.2) | Share of losses of unconsolidated affiliates | 9 | (1.6) | (18.2) |
42.2 | 22.6 | Change in accounts receivable | (14.1) | 117.3 | |
- | - | Change in inventories | 10 | 34.2 | 40.5 |
26.4 | 11.2 | Change in accounts payable | (47.8) | 68.0 | |
(352.2) | 103.3 | Non-cash fx effects | 5 | (264.2) | 124.9 |
108.1 | 45.9 | Change in other operating assets and liabilities net | (11.9) | 34.3 | |
(341.3) | (76.3) | Net Cash Provided by operating activities | (24.0) | 562.8 | |
- | - | Asset and securities sale proceeds | 8 | 99.7 | 31.9 |
(37.1) | (78.4) | Capital expenditures | 7,8 | (488.8) | (330.1) |
(366.8) | (195.8) | Funding group companies | 12 | (257.7) | (389.3) |
(238.1) | 146.7 | Net borrowings/repayments from group companies in cash pool | 13 | 276.5 | 203.2 |
(24.5) | - | Investment in associated entities | 9 | (24.5) | - |
(30.2) | (72.3) | Investment in subsidiaries | 9 | 10.1 | (98.7) |
- | 170.4 | Sale of subsidiaries | - | 120.0 | |
(696.8) | (29.4) | Net Cash used by Investing Activities | (384.7) | (463.0) | |
514.5 | (142.4) | Net borrowings | 330.9 | (193.6) | |
397.7 | 181.8 | Group contribution received | - | - | |
(249.8) | - | Make whole fee | 11 | (249.7) | - |
- | 300.0 | New equity received | 14 | - | 300.0 |
662.4 | 339.5 | Net Cash Provided by Financing Activities | 81.3 | 106.4 | |
- | - | FX effect on cash and cash equivalents. | (5.4) | 2.7 | |
(375.6) | 233.7 | Net Increase in Cash and Cash Equivalents | (332.8) | 208.9 | |
460.2 | 226.5 | Opening cash and cash equivalents | 524.0 | 315.1 | |
84.6 | 460.2 | Closing cash and cash equivalents | 13 | 191.2 | 524.0 |
Notes
Note 1 Accounting Policies Note 2 Revenue
Note 3 Related party transactions
Note 4 Wages, remunerations and pensions Note 5 Other Financial Items
Note 6 Income Taxes Note 7 Intangible Assets
Note 8 Property Plant and Equipment
Note 9 Subsidiaries and other long-term investments Note 10 Inventories
Note 11 Long-term interest bearing debt Note 12 Related Party Balances
Note 13 Cash and Cash Equivalents Note 14 Shareholders and Equity Note 15 Guarantees, pledges, etc. Note 16 Other Short Term Receivables Note 17 Other Current Liabilities
Note 18 Goodwill
Note 19 Part of Archer Norge group Note 20 Subsequent Events
Note 1 Accounting Policies General information
Archer Norge AS is a Norwegian company, which is part of the wider Archer group (the "Archer Ltd. Group"). Archer Norge AS and its subsidiaries (the "Archer Norge Group") is an international energy service group, providing a variety of oilfield products and services. Services include Platform Operations, Well Services and Land Drilling.
The Archer Norge Group operates primarily in Norway and Argentina, while the Archer Group also have operations in UK, Asia, Oceania, Eastern Europe, North America, the Middle East and Africa.
The Statutory accounts have been prepared in accordance with the Accounting Act and good accounting practice.
Change in accounting principles
Reimbursable Revenues
Effective from 1 January 2025, the Archer Norge Group has changed its accounting policy for reimbursable revenues. Reimbursable revenues comprise costs incurred by the Group on behalf of customers, which are subsequently reimbursed at cost without mark-up.
Based on a reassessment of the underlying contractual terms and the Group's role in these arrangements, management has concluded that the Group does not bear the primary risks and rewards related to these costs and acts solely as an intermediary between supplier and customer. In accordance with NGAAP and generally accepted principles for gross versus net presentation, such transactions should be presented on a net basis to reflect their economic substance.
Previously, reimbursable revenues were presented gross in revenue, with corresponding reimbursable costs included in operating expenses. From 2025, reimbursable revenues are presented net, with reimbursements offset against the related reimbursable costs in the income statement.
Comparative figures for 2024 have been restated accordingly (netting reimbursable of NOK 1,661.1 million) to reflect this change in accounting principle. Consequently, the 2024 figures presented in this financial review deviate from those previously reported for that year.The change has no impact on operating profit, net profit, or equity, but improves the comparability and transparency of the Group's revenue presentation.
Cash Flow Statement
In addition, the Group has changed the presentation of certain cash flows in the cash flow statement. Funding provided to other group companies that is long-term in nature is now classified as investing activities.
Previously, repayments related to such funding were presented under financing activities, primarily as "repayment of loans to group companies." Following a review, management concluded that these cash flows relate to long-term financial investments in group companies rather than to changes in the Group's external financing. To better reflect the nature of the transactions and ensure a consistent classification, these cash flows are now presented as investing activities.
Accordingly, repayments amounting to NOK 342.6 million in 2024 have been reclassified from financing activities to investing activities for the group. For the parent company Archer Norge AS repayments of NOK 150.8 million has been reclassified. Comparative figures for 2024 have been restated accordingly.
Interest calculated and capitalised to the loan balance, and subsequently settled together with the related loan repayment, has been reclassified and presented on a combined basis in the cash flow statement. As a result, an amount of NOK 148.7 has been reclassified from operating activities to investing activities for Archer Norge Group and Archer Norge AS.
The reclassification represents a change in presentation only and has no impact on net profit or total cash flows, but affects the allocation between investing and financing activities in the cash flow statement.
Classification and assessment of balance sheet items
Current assets and short-term liabilities include items due for payment within one year. Other items are classified as fixed assets/long-term liabilities. Current assets are valued at the lower of acquisition cost and fair value. Short-term liabilities are entered in the balance sheet at the nominal amount at the time of establishment. Fixed assets are valued at acquisition cost but written down to fair value if the decline in value is not expected to be temporary. Long-term debt is entered in the balance sheet at the nominal amount at the time of establishment.
Accounting of income
The majority of the company's income is based on daily rates from drilling contracts or other service contracts. Revenue is recognized in the period in which the service is performed.
Operating assets
Operating assets are depreciated on a straight-line basis over the operating assets' economic life.
Accounts receivable and other receivables
Accounts receivable and other receivables are assessed at net value after deductions for foreseeable losses.
Goodwill
We allocate the cost of acquired businesses to the identifiable tangible and intangible assets and liabilities acquired, with any remaining amount being capitalised as goodwill. Goodwill is amortised over 5 years.
Investments in subsidiaries
Investments in subsidiaries are assessed according to the cost method in the company accounts. The investments are valued at acquisition cost for the shares unless a write-down has been necessary. A write-down has been made to fair value when the decline in value is due to reasons that cannot be assumed to be temporary, and it must be considered necessary according to good accounting practice. Write-downs are reversed when the basis for write-down is no longer present.
Investment in jointly controlled business
Jointly controlled operations are defined as companies where the group has joint control with another party. Jointly controlled business exists with a 50/50 ownership share or if it is otherwise regulated that the parties have joint control. Investments in jointly controlled operations are accounted for using the equity method.
Foreign currency
The company has parts of its income and costs in currencies other than NOK. Income and costs in foreign currency are booked at the exchange rate on the day of the transaction. Balance sheet items in foreign currency are converted at the exchange rate on the balance sheet date.
Pension
The company has a defined contribution pension scheme which is expensed on an ongoing basis.
Tax
The tax cost consists of payable tax and changes in deferred tax on the company's assets and liabilities. Deferred tax benefit and deferred tax are based on temporary differences that arise between accounting value, tax value and loss carried forward. Deferred tax benefits are taken into account if it is likely that the benefit will be used.
Cash flow statement
The cash flow statement has been prepared using the indirect method.
Note 2 Revenue
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
1,008.2 | 893.0 | Revenue | 7,560.1 | 7,445.5 |
- | - | Other operating income | 1.9 | 42.0 |
- | - | Reimbursable Income | 30.2 | 28.7 |
1,008.2 | 893.0 | Total revenue | 7,592.1 | 7,516.2 |
- | - | Segments Platform operations | 3,477.1 | 3,706,7 |
- | - | Well Services | 2,021.9 | 1,946.0 |
- | - | Land Drilling | 1,408.2 | 1,595.5 |
- | - | Renewables | 684.8 | 267.7 |
1,008.2 | 893.0 | Headquarter services | - | - |
0 | 0 | Other revenue | - | - |
1,008.2 | 893.0 | Total revenue | 7,592.1 | 7,516.2 |
883.4 | 790.0 | Geographical areas Norway | 5,342.5 | 4,362.1 |
11.6 | 15.0 | Argentina | 1,408.2 | 1,610.5 |
76.2 | 63.5 | UK | 404.4 | 210.5 |
1.9 | 1.6 | Middle East | 70.3 | 97.1 |
5.7 | 3.6 | Malaysia | 19.7 | 23.9 |
2.2 | 0.8 | Australia | 40.9 | 49.1 |
23.9 | 13.4 | America | 243.4 | 265.1 |
0.0 | 0.4 | Poland | 2.1 | 0.4 |
0.0 | 0.6 | Iceland | - | 54.8 |
3.2 | 4.1 | Other | 60.7 | 12.2 |
1,008.2 | 893.0 | Total revenue | 7,592.1 | 7,516.2 |
Note 3 Related party transactions | ||
Archer Norge AS (parent company) has the following related party transactions: | ||
Related party to Archer Norge AS | ||
Revenue (In NOK millions) | 2025 | 2024 |
Archer AS | 761.1 | 676.8 |
Archer Oiltools AS | 108.9 | 96.8 |
Archer (UK) Ltd | 51.6 | 38.0 |
Archer Assets UK Ltd | 24.6 | 25.4 |
Archer DLS Corporation (BVI Company) | 11.6 | 15.0 |
Archer BCH (Canada) Ltd | 6.3 | 8.0 |
Archer Well Company (Malaysia) Sdn.Bhd | 5.7 | 3.6 |
ARCHER DO BRASIL LTDA | 3.3 | 4.1 |
Archer Consulting AS | 9.7 | 8.0 |
Other related parties | 25.3 | 17.3 |
Total revenue from related parties | 1,008.2 | 893.0 |
Operating expense (In NOK millions) | 2025 | 2024 |
Archer Oiltools AS | 37.7 | 17.7 |
Archer AS | 15.1 | 16.2 |
Archer Ltd (BM) | 9.5 | 21.3 |
Archer (UK) Ltd | 5.7 | 14.1 |
Archer Well Company Inc. | 4.7 | 3.0 |
Archer Topaz Ltd (BM) | 3.0 | 1.8 |
Archer Consulting AS | 1.2 | 1.0 |
Other related parties | 20.6 | 5.5 |
Total operating expense from related parties | 97.5 | 80.6 |
Interest income from related parties (In NOK millions) | 2025 | 2024 |
Archer Assets UK Ltd | 170.3 | 194.1 |
Archer Well Company Inc. | 139.3 | 191.9 |
Archer Oiltools AS | 51.1 | 50.4 |
Archer Ltd (BM) | 35.1 | 27.7 |
Ziebel US | 5.1 | 4.6 |
Archer AS | 3.5 | 3.4 |
Other related parties | 26.1 | 5.7 |
Total interest income from related parties | 430.4 | 478.0 |
Interest cost to related parties (In NOK millions) | 2025 | 2024 |
Archer AS | 21.1 | 26.3 |
Archer (UK) Ltd | 3.0 | 7.6 |
Archer Assets UK Ltd | 7.1 | 5.7 |
Archer Ltd (BM) | 5.1 | 5.6 |
Other related parties | 8.6 | 7.6 |
Total interest cost to related parties | 44.9 | 52.8 |
Archer Norge Group has the following related party transactions:
Part of Archer Ltd Group
Related party to the Archer Norge Group | ||
Revenue (In NOK millions) | 2025 | 2024 |
Archer Ltd (UK) | 119.9 | 158.0 |
Archer Oil Tools LLC | 115.8 | 121.5 |
Archer UK Ltd Abu Dhabi Branch | 103.9 | 53.3 |
Archer BCH (Canada) Ltd | 108.1 | 53.1 |
Archer Well Company (Australia) Pty Ltd | 44.7 | 49.1 |
ARCHER DO BRASIL LTDA | 38.1 | 31.0 |
Archer Well Company (M) Sdn Bhd. | 20.5 | 25.2 |
Archer Assets UK Ltd | 25.3 | 24.4 |
DLS Argentina Surcursal Argentina | 12.9 | 21.3 |
Archer DLS Corporation (BVI Company) | 12.0 | 14.4 |
Archer Well Oil and Gas Services LLC | - | 42.2 |
Other related parties | 14.0 | 5.5 |
Total revenue from related parties | 615.2 | 598.9 |
Operating expense (In NOK millions) | 2025 | 2024 |
Archer UK Ltd Abu Dhabi Branch | 159.4 | 216.3 |
Archer BCH (Canada) Ltd | 85.8 | 154.0 |
Archer Oil Tools LLC | 45.6 | 14.9 |
Archer Well Oil and Gas Services LLC | 33.6 | - |
Archer Ltd (UK) | 27.9 | 39.8 |
Archer Services Limited | 15.5 | 15.0 |
Archer Ltd (BM) | 9.8 | 19.5 |
Archer Well Company (M) Sdn Bhd. | 3.7 | 9.0 |
Archer Well Company (Australia) Pty Ltd | 3.4 | 9.6 |
Archer DLS Corporation Surcursal Bolivia | 2.5 | 3.0 |
Seawell Offshore Danmark AS | 1.4 | 3.8 |
ARCHER DO BRASIL LTDA | 1.5 | 3.1 |
Other related parties | 11.6 | 3.7 |
Total operating expense from related parties | 401.7 | 491.7 |
Interest income from related parties (In NOK millions) | 2025 | 2024 |
Archer Assets UK Ltd | 170.1 | 194.2 |
Archer Well Company Inc | 138.7 | 0 |
Archer Ltd (BM) | 35.3 | 27.4 |
Archer Ltd (UK) | 6.6 | 3.4 |
Archer Well Company (M) Sdn Bhd. | 0.1 | 0.9 |
Other related parties | 1.3 | 0.2 |
Total interest income from related parties | 352.0 | 226.1 |
Interest income cost to related parties (In NOK millions) | 2025 | 2024 |
Archer Assets UK Ltd | 7.2 | 5.7 |
Archer Ltd (BM) | 5.3 | 5.6 |
Archer Ltd (UK) | 3.0 | 7.6 |
Archer Well Company (Australia) Pty Ltd | 2.4 | 2.3 |
Other related parties | 1.1 | 0.1 |
Total interest cost to related parties | 18.9 | 21.2 |
Note 4 Wages, remunerations and pensions
The following table shows a summarized analysis of our total employee compensation cost.
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
405.8 | 374.5 | Salaries | 2,835.5 | 2,706.3 |
63.4 | 65.0 | Payroll tax | 448.8 | 451.1 |
36.6 | 33.2 | Pension cost | 206.9 | 211.7 |
18.0 | 9.9 | Other benefits | 81.3 | 119.6 |
523.9 | 482.6 | Total | 3,572.4 | 3,488.7 |
359 | 340 | Number of employees in full time equivalent | 2,997 | 2,582 |
The Company has defined contribution pension scheme for all employees. The pension scheme satisfies the legal requirements related to occupational pension.
Compensation to managing director of the Company | |
(In NOK millions) | 2025 |
Salary | 2.9 |
Bonus | 2.0 |
Pension contribution | 0.1 |
Other remuneration | 0.0 |
Total compensation costs | 5.0 |
Shares held by managing director of Archer Norge AS | |
Name Position held in the Company | Shares Held in Archer Ltd |
Espen Joranger Managing director | 18,292 |
Mr. Joranger serves as chief financial officer for the Archer Group, in addition to having the role as managing director of Archer Norge AS. Upon termination of employment, Joranger is entitled to 12 months pay, in addition to a 6 months notice period.
Remuneration to the Board of Directors
There has not been paid any remuneration to the Directors of the Board for the year ended December 31, 2025.
Remuneration Audit
The following table shows total remuneration to our auditors.
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
1.2 | 0.8 | Legally required audit | 5.4 | 4.0 |
0.0 | - | Attestation Services | 0.0 | - |
1.2 | 0.8 | Total | 5.4 | 4.0 |
Share Incentive Plans
The Board of Archer Limited has from time to time granted restricted stock units, or RSUs, to members of Archer's management team, including employees in Archer Norge AS and its subsidiaries. The RSUs gives the grantee the right to receive shares in Archer Limited conditioned upon employment in the Archer group upon the vesting date. The RSUs typically vest over three to four years after the grant date. As of December 31, 2025 a total of 138,189 RSUs was outstanding of which 97,925 RSUs was granted to 12 employees in Archer Norge AS and its subsidiaries.
RSU awards do not receive dividends or carry voting rights during the performance period. The fair value of the restricted stock award is the quoted market price of Archer's stock on the date of grant.
2025 | 2024 | |||
Average weighted fair value at grant date* | 23.11 | 23.0 | ||
Entity | Legal entity number | Outstanding per 31.12.2025 | Number of employees | Fair Value at grant date |
Archer Norge AS | 173 | 83,325 | 10 | 23.27 |
Archer Oiltools AS | 175 | 14,600 | 2 | 22.18 |
Note 5 Other Financial Items
Other Financial Income | ||||
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
3.0 | 4.4 | Realized foreign exchange gain | 31.4 | 44.4 |
352.2 | - | Unrealized foreign exchange gain | 264.2 | - |
1.1 | 150.8 | Unrealized gain on forward trade contract | 1.1 | 150.8 |
0.1 | 18.2 | Share of profit in limited parnerships | 0.1 | 18.3 |
173.5 | - | Other items | 69.3 | 46.0 |
529.8 | 173.4 | Total | 366.1 | 259.5 |
Other Financial Cost | ||||
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
101.7 | 3.7 | Realized foreign exchange loss | 133.6 | 42.3 |
- | 254.1 | Unrealized foreign exchange loss | - | 275.7 |
0.4 | - | Witholding tax | 0.8 | - |
418.8 | - | Cost related to refinancing | 418.8 | - |
- | - | Factoring agreement | 31.1 | 39.8 |
3.7 | 1.1 | Bank charges | 8.0 | 7.7 |
2.8 | 7.7 | Other items | 22.1 | 91.8 |
527.4 | 266.7 | Total | 614.4 | 457.3 |
Forward Contract
The Company has large borrowings under the First Lien Facility and the Second Lien Facility, which are denominated in USD. Furthermore, the Company provides funding to other Group Companies, primarily denominated in USD. However, as the Company has more borrowing in USD than they provide lending in USD, the Company is exposed to the movement in USDNOK rate. In order to reduce the impact of movement in USDNOK on these balance items, the Company entered in January 2024 into a USDNOK forward contract where the Company effectively reduces the impact from foreign exchange movement. The contract is for an underlying amount of USD 165 million and expired in January 2025.
Note 6 Income Taxes
Temporary Differences
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
34.9 | 49.5 | Property differences | 42.6 | 53.2 |
- | - | Inventory | (25.5) | (43.4) |
- | - | Gain/loss account | 52.8 | 0.1 |
(1.8) | (1.7) | Leasing | (0.6) | 1.0 |
- | - | Other | 1.1 | - |
- | 150.8 | Provisions | (438.2) | (251.5) |
33.1 | 198.6 | Total temporary differences | (367.9) | (240.6) |
(551.7) | (557.5) | Losses carry forward | (1,226.4) | (1,463.7) |
(277.5) | (277.5) | Interest deduction cut off carry forward | (313.4) | (311.8) |
(796.0) | (636.4) | Net deferred tax asset basis before valuation allowance | (1,906.0) | (2,016.0) |
175.1 | 140.0 | Calculated deferred tax asset | 469.3 | 502.5 |
(61.1) | (61.1) | Deferred tax asset not recognized | (224.8) | (244.9) |
114.1 | 78.9 | Deferred tax asset | 244.5 | 257.6 |
Tax expense is impacted by the unrecognition of deferred tax assets which we do not expect to be able to utilise within the foreseeable future. We have booked valuation allowances against deferred tax relating to net operating losses and foreign tax credits in Argentina and United States, and other timing differences in Norway.
Calculation of the basis for taxation
Archer Norge AS (In NOK millions) Archer Norge Group
2025 | 2024 | 2025 | 2024 | |
(110.9) | 87.0 | Net income before tax | (61.7) | (109.2) |
(48.8) | (344.8) | Permanent differences | 175.1 | 36.0 |
(159.8) | (257.8) | Net Taxable (Income)/Loss | 113.5 | (73.2) |
165.6 | (119.1) | Movement temporary differences | (80.2) | (75.4) |
5.8 | (376.9) | Net taxable income / loss | 33.3 | (148.6) |
8.3 | 19.4 | Tax losses to be carried forward | (29.7) | 168.5 |
14.1 | 357.5 | Group contribution | - | - |
- | - | Taxable income / loss | 3.5 | 20.0 |
Tax expense reported in profit and loss | ||||
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
- | - | Current taxes payable | 1.3 | 4.3 |
- | - | Total Taxes Payable | 1.3 | 4.3 |
(35.1) | 17.1 | Change in deferred taxes | 16.8 | (9.8) |
(35.1) | 17.1 | Total tax expense reported in profit or loss | 16.8 | (5.5) |
Effective tax rate
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
(110.9) | 87.0 | Net income before tax | (61.7) | (109.2) |
(24.4) | 19.1 | 22% of net income before tax | (13.6) | (24.0) |
(10.7) | (2.0) | 22% of permanent differences | 38.5 | 7.9 |
- | - | Effect of deferred tax asset not recognized | (10.3) | (26.5) |
(35.1) | 17.1 | Calculated tax | 14.6 | (5.5) |
32% | 20% | Effective tax rate | 24% | 5% |
The Group operates in a number of jurisdictions and its tax filings are subject to regular audit by the tax authorities.
As in previous years, all benefits and expenses in relation to uncertain tax positions have been analysed in terms of quantification and risk, and we have provided for uncertain benefits and expenses where we believe it is more likely than not that they will crystallise.
The Group's accounting policy is to include interest and penalties in relation to uncertain tax positions within tax expense. Withholding taxes are expensed as and when withheld and are credited to the income statement if and when recovered. Penalties and interest on tax are classified as income tax expense.
Tax payable in the balance sheet
Archer Norge AS | (In NOK millions) | Archer Norge Group | ||
2025 | 2024 | 2025 | 2024 | |
- | - | Current year | 1.1 | - |
- | - | Witholding tax | - | - |
- | - | Payable tax in the balance | 1.1 | - |
Global Minimum Top-up Tax
In March 2022, the Organisation for Economic Co-operation and Development (OECD) issued technical guidance and overview of the potential impact of the OECD Pillar Two expansion on the financial statements.
The expansion of Pillar Two aims to address Base Erosion and Profit Shifting (BEPS) by introducing a global minimum tax rate of 15 % and implementing tax legislation for the allocation of taxing rights.
The tax legislation is effective from 1 January 2024, and therefore the Group is subject to the global minimum top-up tax under Pillar Two legislation for the fiscal year 2025.
The Group has prepared a preliminary Transitional country-by-country reporting (CbCR) Safe Harbour assessment concluding on FY2025, based on which it expects to be eligible for the Transitional CbCR Safe Harbour in the majority of jurisdictions in which the Group is present during FY2025.
The top-up tax for fiscal year 2025 amounts to NOK 0.
At 31 December 2025, there are no indications that the top-up tax will have material impact to the Group in 2026.
Note 7 Intangible Assets Intangible assets - Archer Norge Group | |||
(In NOK millions) | Intangible Assets | Total | |
Accumulated acquisition cost at 01.01 | 128.9 | 128.9 | |
Recognized on Acquisitions | 20.2 | 20.2 | |
Additions | 93.7 | 93.7 | |
Accumulated acquisition cost 31.12 | 242.8 | 242.8 | |
Accumulated depreciation 01.01 | 71.4 | 71.4 | |
Recognized on Acquisitions | 18.2 | 18.2 | |
Depreciation | 29.9 | 29.9 | |
Accumulated depreciation 31.12 | 119.5 | 119.5 | |
Net book value 31.12 | 123.4 | 123.4 | |
Estimated economic useful life | 3-10 Years | ||
Note 8 Property Plant and Equipment | |||
Fixed assets - Archer Norge AS | |||
(In NOK millions) | Furniture and equipment | IT-equipment and projects | Total |
Accumulated acquisition cost at 01.01 | 54.2 | 368.4 | 422.6 |
Additions | 1.0 | 36.1 | 37.1 |
Disposals | - | - | - |
Accumulated acquisition cost 31.12 | 55.2 | 404.5 | 459.7 |
Accumulated depreciation 01.01 | 32.1 | 209.4 | 241.6 |
Depreciation | 7.5 | 58.4 | 65.9 |
Accumulated depreciation 31.12 | 39.6 | 267.8 | 307.4 |
Net book value 31.12 | 15.6 | 136.7 | 152.4 |
Estimated economic useful life | 3-10 Years | 3-5 Years | |
(In NOK millions) | |||
Leases recognized on the balance | 11.7 | ||
Lease liability recognized in the balance | 13.5 | ||
Depreciation on leasing | 7.0 | ||
Fixed assets - Archer Norge Group | ||||
(In NOK millions) Operational Equipment | IT-equipment and projects | Construction / CIP | Other Fixed Assets | Total |
Accumulated acquisition cost 3,767.0 at 01.01 | 358.0 | 32.9 | 92.5 | 4,250.4 |
Assets recognised on 82.6 acquisition | - | 12.2 | 94.9 | |
Additions 394.4 | 36.1 | 57.3 | 1.0 | 488.8 |
Disposals (152.4) | - | (0.1) | (152.5) | |
Cost Transferred - | - | - | - | - |
Translation adjustment (135.3) | - | (2.8) | (3.1) | (141.2) |
Accumulated acquisition cost 3,965.3 31.12 | 394.1 | 87.4 | 102.5 | 4,540.4 |
Accumulated depreciation 2,592.6 01.01 | 220.0 | - | 43.2 | 2,855.8 |
Accumulated depreciation 60.9 recognised on acquisition | - | - | 9.7 | 70.7 |
Depreciation 284.8 | 37.5 | - | 8.5 | 330.8 |
Accumulated depreciation (94.9) disposals | - | - | - | (94.9) |
Translation adjustment (77.5) | - | - | - | (77.7) |
Accumulated depreciation 2,766.0 31.12 | 257.5 | - | 61.2 | 3,084.7 |
Net book value 31.12 1,190.3 | 136.7 | 87.4 | 41.3 | 1,455.7 |
Estimated economic useful life 3-10 Years | 3-5 Years | 3-10 Years | ||
(In NOK millions) | ||||
Leases recognized on the balance | 246.3 | |||
Lease liability recognized in the balance | 272.0 | |||
Depreciation on leasing | 68.2 | |||
Note 9 Subsidiaries and other long-term investments
Subsidiaries which are consolidated in group accounts
Subsidiaries | |||||
Company | Location | Ownership | Total Equity | Result 2025 | Book Value |
Archer AS | Sandnes | 100 % | 487.0 | 139.5 | 1,976.8 |
Archer Consulting AS | Sandnes | 100 % | 9.0 | 5.9 | 9.0 |
Archer Oiltools AS* | Sandnes | 99 % | 45.5 | 97.6 | 388.8 |
DLS Argentina Fluidos S.A.* | Buenos Aires | 90 % | 79.3 | 1.8 | - |
DLS Archer LTD SA* | Buenos Aires | 98 % | 211.7 | (61.7) | 122.3 |
Archer Poland sp. Z.O.O | Gdansk | 100 % | 0.01 | (1.0) | - |
Vertikal Service AS | Volda | 65 % | 32.5 | 14.5 | 26.5 |
Archer Wind AS | Stavanger | 100 % | 140.7 | (68.1) | 115.9 |
Archer WellConnection AS | Sandnes | 100 % | 26.4 | 29.6 | 47.4 |
Archer Well Machining AS | Sandnes | 100 % | 3.5 | 0.01 | 10.0 |
Total | 2,696.8 | ||||
*the remaining shares in Archer Oiltools AS, DLS Argentina Fluidos S.A. and DLS Archer LTD SA are owned by Archer AS.
Archer Norge AS has assessed the carrying amounts of investments in subsidiaries as at 31 December 2025 to determine whether there is any indication of impairment. The assessment was based on information available and market conditions known at the time of preparation of the statutory financial statements.
The impairment assessment is based on discounted cash flow analyses, using assumptions related to future revenue growth, profitability and terminal growth. The recoverable amount is determined as the present value of expected future cash flows.
Due to uncertainty related to the determination of an appropriate weighted average cost of capital (WACC) for Argentina, the recoverable amount as at 31 December 2021 was aligned with the equity value reflected in the consolidated financial statements of Archer Ltd.This resulted in a higher impairment recognised in 2021 than indicated by the cash-flow-based valuation. Subsequent impairment testing performed as at 31 December 2024 and 31 December 2025 did not identify a need for further impairment.
The investment in DLS Argentina Fluidos S.A. was written down to zero as of 1 January 2021 and remains fully impaired as at 31 December 2025.
The investment in DLS Archer Ltd S.A. was written down by NOK 95.6 million in 2023.
The valuation of investments in DLS Archer S.A. and DLS Fluidos is subject to estimation uncertainty, particularly related to terminal value assumptions. Terminal growth rates of 1-2 per cent have been applied based on expected future market developments within Archer's business areas. EBITDA margins are assumed to improve moderately. If these assumptions do not materialise, further impairment may be required.
In 2025, Archer AS and Comtrac AS were merged, with Comtrac AS being consolidated into Archer AS. The investment in Archer Poland sp. z o.o. was written down to zero in 2025.
Investment in associates and Joint Ventures
Archer Norge AS and Archer Norge Group has the following participation in investments that are recorded using the equity method:
Associates and Joint Venture | ||
December 31, 2025 | December 31, 2024 | |
dSolve AS | 20 % | - |
Archer Well Oil and Gas Services LLC | 30 % | 30 % |
Archer Elemental Norway AS | 60 % | - |
The carrying amounts of the Group's investments accounted for using the equity method are as follows: | ||
(In NOK millions) | December 31, 2025 | December 31, 2024 |
Initial investment in dSolve AS | 39.7 | - |
Share of net results since acquisition | 0.1 | - |
Reported investment in associates | 39.8 | - |
dSolve AS | ||
During the nine months of 2025, we paid 24.5 million to acquire 20% of dSolve AS (or "DSolve") an unrelated, startup-company based in Trondheim, Norway, with the vision to pioneer rigless subsea plugging & abandonment, using electrochemical steel removal technology. The share purchase agreement provides Archer with an option to purchase the remaining 80% of the company in the future, after twelve months and on the occurrence of certain conditions including the successful commercialisation of the DSolve technology. If the development of the technology is successful an additional contingent consideration is payable, and Archer will have exclusive rights to use the technology in the provision of services to our customers. We have accrued additional estimated contingent purchase consideration of
15.2 million.
Archer Well Oil and Gas Services LLC
An Archer group company. The remaining shares are owned by Archer Well Co. International Ltd.
Archer Elemental Norway AS
We have entered into a joint venture with Elemental Energies Group, a wells focused engineering and consultancy provider, focusing on the upstream decommissioning and low carbon energy sectors, with a view to providing more fully integrated services. We have agreed with the co-investor that Archer will contribute 60% of funding and will own 60% of the joint venture entities. Capitalisation of the joint venture company shall be on a pro-rata basis based on the respective shareholding. The shareholders' agreements governing the joint venture grant substantive participating rights to the co-owner, a result of which is that the joint venture will be accounted for as equity investment.
Note 10 Inventories | ||
(In NOK millions) | Archer Norge Group | |
2025 | 2024 | |
Finished goods | 279.6 | 154.4 |
Work in progress | 2.6 | 13.6 |
Spare Parts | 92.6 | 235.3 |
Drilling supplies | - | 1.0 |
Write-down of obsolete inventory | (26.1) | (26.8) |
Total Inventories | 348.7 | 377.4 |
The write-down of obsolete inventory at year-end is related to finished goods (24.2) and Spare Parts (1.8).