Archer LimitedOSL: ARCH

Q2 2026 Report

Aug 13, 2026 at 5:59 AM UTC · MarketScreener

Watch Archer explain itArcher Limited (ARHVF) Q2 2026 Earnings Call · Replay · Aug 13

2026 Archer Limited

SECOND QUARTER AND FIRST HALF YEAR

2026 RESULTS

‌Table of Contents

Management's Discussion and Analysis 1

Condensed Consolidated Income Statement (unaudited) 4

Condensed Consolidated Statement of Comprehensive Income (unaudited) 5

Condensed Consolidated Statement of Financial Position (unaudited) 7

Condensed Consolidated Statement of Cash Flows (unaudited) 8

Condensed Consolidated Statement of Changes in

Shareholders' Equity (unaudited) 10

Notes 11

Appendix to Second Quarter and Half Year 2026 Report 30

‌Management's Discussion and Analysis‌

Archer results for the three months ending 30 June 2026

Archer's revenue decreased by $34.1 million, or 11.5%, to $262.6 million in the second quarter of 2026 compared to the corresponding period last year.The decrease in revenue reflects lower reported activity compared to the second quarter of 2025 driven by the divestment of the workover business in Q1, 2026.

EBITDA before exceptional items for the second quarter in 2026 of $47.6 million represents a 5% increase compared to the corresponding period last year of $45.4 million. Total exceptional items was $2.7 million in the quarter compared to $3.7 million in the corresponding quarter in 2025. EBITDA for the second quarter in 2026 of $44.9 million represents a 7.7% increase compared to the corresponding period last year of $41.7 million. The calculation of EBITDA before and after exceptional items is detailed in the Appendix to these financial statements.

For the second quarter of 2026, operating profit was $23.7 million, an increase of $8.4 million compared to operating profit of $15.3 million in the corresponding period in 2025. Total financial items were a cost of $16.4 million in the second quarter of 2026, compared to a cost of $12.0 million in the corresponding quarter in 2025. Net income for the second quarter of 2026 amounted to $0.2 million compared to net income of $2.0 million for the second quarter of 2025.

Archer results for the six months ending 30 June 2026

Archer's revenue decreased by $54.7 million, or 9.2%, to $541.1 million in the first half of 2026 compared to the corresponding period last year.The decrease in revenue reflects lower reported activity compared to the second quarter of 2025 driven by the divestment of the workover business in Q1, 2026.

EBITDA before exceptional items for the first half year in 2026 of $88.8 million represents a 2.1% decrease compared to the corresponding period last year of $90.7 million. Total exceptional items for the first six months of 2026 was $6.6 million compared to $11.4 million in 2025. EBITDA for the first six months in 2026 of $82.2 million represents a 3.8% increase compared to the corresponding period last year of $79.2 million.

Platform Operations reported EBITDA of $26.1 million, compared to $32.3 million in the first half of 2025. Well Services delivered EBITDA of $36.2 million, up 14.9% year-over-year, driven by increased P&A activity and strong North Sea performance. Land Drilling generated EBITDA of $21.8 million, an increase of $8.0 million from the prior year, supported by continued growth and strong drilling activity in Argentina. Renewables contributed EBITDA of $2.4 million, compared to $5.5 million in the corresponding period last year.

For the first six months of 2026, operating profit was $39.7 million, an increase of $5.7 million compared to operating profit of $33.8 million in the corresponding period in 2025.

Net financial items were a cost of $28.5 million in the first six months of 2026, compared to a cost of $63.2 million in the corresponding period in 2025. The 2025 comparative period included costs in relation to the refinancing conducted in the first quarter of 2025, most notably the early redemption make whole amount and the write-off of remaining unamortised fees relating to the First Lien and Second Lien Bond at the time of early redemption.

Net profit for the first six months of 2026 was $3.8 million compared to a net loss of $26.0 million for the first six months of 2025.

Capital expenditure for the first six months of 2026 totalled $34.3 million compared with $25.8 million for the first six months of 2025. In the first half of 2026, operating cash flows generated $19.9 million of cash. Net cash used in investing activities was $39.0 million, while net cash generated from financing activities was $13.6 million.

Cash and cash equivalents amounted to $35.2 million at 30 June 2026 compared to $40.6 million at 31 December 2025. Total net interest-bearing debt at 30 June 2026 was $489.0 million compared to $427.3 million at 31 December 2025, calculated as current and non-current interest-bearing debt less cash and cash equivalents.

Attached to this half year report is an appendix with the reconciliation between GAAP results and non-GAAP measures, as well as the EBITDA by segment for the last five uarters.

Outlook

The markets for the Group's services are impacted by the operators demand for Archer's services which are in the longer term impacted by the ongoing energy transition as well as cyclical variations influenced by oil market outlook and oil price levels.

Archer shares the view that global energy demand will continue to grow, with oil and gas expected to remain an important part of the energy mix for decades to come as the global energy transition progresses. Existing offshore and onshore producing assets will continue to play a critical role in meeting energy demand, supporting long-term demand for Archer's service offerings. Archer's core activities remain concentrated in the brownfield segment of the oil and gas value chain, where visibility and activity levels are generally supported by the ongoing need to maximize production, improve recovery rates and maintain ageing infrastructure.

While volatility in commodity prices, geopolitical developments and broader macroeconomic uncertainty may influence investment decisions across the energy sector, Archer continues to see resilient demand for production-oriented drilling and well services in its core markets. The Company believes operators will remain focused on maximizing value from existing producing assets through production drilling, well intervention, platform drilling and integrity-related services. At the same time, an increasing number of mature fields are approaching late-life production phases, creating a substantial and growing market for plug and abandonment ("P&A") and decommissioning services. Archer continues to strengthen its position in this market through its integrated OneArcher operating model, technology offerings and established presence across the North Sea, where significant decommissioning activity is expected over the coming decades.

The Group also maintains an ownership interest in Iceland Drilling, which provides drilling services to the geothermal industry and offers strategic exposure to the broader energy transition. Archer continues to evaluate opportunities where its drilling, well services and engineering competencies can be applied to adjacent energy markets.

Within its Land Drilling division, Archer remains focused on supporting the continued development of the Vaca Muerta shale basin in Argentina, one of the world's largest unconventional oil and gas resources. Activity levels in the basin continue to increase, supported by investments in production and export infrastructure, improving market access and growing operator demand for drilling services. Archer has established a strong market position in the region and continues to expand its operational footprint through additional drilling capacity and long-term customer relationships. The Company believes Vaca Muerta will remain an important driver of growth for its Land Drilling business in the years ahead.

Risks and uncertainties

Archer is exposed to a number of risk factors relating to the Company's finances and the industry in which the Company operates. Other than those described in Note 17 Commitments and contingencies, Archer has not identified any additional risk exposure beyond those described in Archer Limited's 2025 Annual report.

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this news release contains statements relating to our future business and/or results. These statements include certain projections and business trends that are "forward-looking." All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by or that include the words "estimate," pro forma numbers, "plan," project," "forecast," "intend," "expect," "predict," "anticipate," "believe," "think," "view," "seek," "target," "goal" or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations, including integration and any potential restructuring plans; any statements concerning proposed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements do not guarantee future performance and involve risks and uncertainties. Actual results may differ materially from projected results/pro forma results as a result of certain risks and uncertainties. Further information about these risks and uncertainties are set forth in our most recent annual report for the year ending December 31, 2025. These forward-looking statements are made only as of the date of this news release. We do not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends,

data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

Responsibility Statement from the Board of Directors

We confirm, to the best of our knowledge, that the condensed interim financial statements for the period from 1 January to 30 June 2026 have been prepared in accordance with IAS 34 - Interim Financial Reporting and give a true and fair view of the Group's assets, liabilities, financial position and profit or loss as a whole.

We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements. We have disclosed all major related parties' transactions. A detailed description of the principal risks and uncertainties facing the group is provided in our annual statement for the year ended 31 December 2025 as supplemented herein, remain materially unchanged for the remaining six months of the financial year 2026.

13 August, 2026

The Board of Archer Limited

Giovanni Dell' Orto

(Director)

Peter Sharpe

(Director)

James O'Shaughnessy

(Director)

Adrian Geelmuyden

(Director)

Richard Stables

(Director)

Derek Mathieson

(Director)

Lars Pedersen

(Director)

‌Condensed Consolidated Income Statement (unaudited)‌

(In USD millions)		Three Months	Ended 30 June	Six Months	Ended 30 June	Year Ended 31 Dec.
	Note	2026	2025	2026	2025	2025
Revenues
Revenues	4	262.6	296.7	541.1	595.8	1,196.7
Other income	4	-	-	-	-	0.3
Total Revenue and Income		262.6	296.7	541.1	595.8	1,197.0
Expenses
Personnel expenses		129.0	143.4	264.9	284.4	569.4
Other operating expenses		88.4	111.6	193.8	232.3	462.1
Depreciation and amortisation	6, 8, 9	21.5	17.7	41.7	36.6	78.1
Impairment charges		-	-	-	-	33.1
Loss on sale of business	15	-	8.7	1.0	8.7	8.7
Total Expenses		239.0	281.4	501.4	562.1	1,151.4
Operating profit		23.7	15.3	39.7	33.8	45.6
Financial items
Net interest expense		(14.1)	(14.5)	(27.0)	(52.0)	(81.3)
Share of results in associated companies		(0.4)	0.0	(0.3)	0.0	0.0
Other financial items	5	(2.0)	2.5	(1.3)	(11.2)	(12.5)
Total financial items		(16.4)	(12.0)	(28.5)	(63.2)	(93.8)
Profit (loss) before income taxes		7.3	3.3	11.2	(29.4)	(48.2)
Income tax benefit (expense)	16	(7.1)	(1.3)	(7.4)	3.4	(5.3)
Profit (loss)		0.2	2.0	3.8	(26.0)	(53.5)
- Attributable to non-controlling interests		(0.3)	0.6	(0.7)	1.2	5.2
- Attributable to controlling interests		0.5	1.4	4.5	(27.2)	(58.7)
Gain (loss) per share - basic		(0.00)	0.02	0.04	(0.30)	(0.63)
Gain (loss) per share - diluted		(0.00)	0.02	0.04	(0.30)	(0.63)
Weighted average number of shares outstanding (million)
Basic	14	99.5	90.5	99.5	90.5	92.8
Diluted	14	99.6	90.7	99.6	90.7	93.1

‌Condensed Consolidated Statement of Comprehensive Income (unaudited)‌

Condensed Consolidated Statement of Comprehensive Income

(in USD millions) Three Months Ended 30 June, Six Months Ended 30 June Year Ended 31 Dec.

	2026	2025	2026	2025	2025
Profit (loss)	0.2	2.0	3.8	(26.0)	(53.5)
Other comprehensive (loss)/income
Currency translation differences	(0.5)	3.7	2.5	19.5	23.5
Income tax effect	-	-	-	-	-
Total other comprehensive income (loss)	(0.5)	3.7	2.5	19.5	23.5
Total comprehensive income (loss), net of tax	(0.3)	5.7	6.3	6.5	(30.0)
Attributable to:
Non-controlling interest	(0.3)	0.4	(0.7)	1.1	5.2
Controlling interest	(0.0)	5.3	7.0	5.3	(35.2)
Accumulated Condensed Consolidated Statement of	Comprehensive Income
(in USD millions)	Translation differences		Other comprehensive income		Total
Balance at 31 December 2024	(14.2)		-		(14.2)
Total other comprehensive income (loss) during 2025	23.5		-		23.5
Balance at 31 December 2025	9.5		-		9.5
Total other comprehensive income (loss) during 2026	2.5		-		2.5
Balance at 30 June 2026	12.1		-		12.1

‌Condensed Consolidated Statement of Financial Position (unaudited)‌

(In USD million)		30 June 2026	31 Dec. 2025
ASSETS Property plant and equipment	6	330.8	324.9
Right of use assets	9	54.9	57.6
Goodwill	7	204.4	196.2
Intangible assets	8	35.3	32.5
Investment in associates and joint ventures	18	4.7	4.0
Deferred tax asset	16	29.4	34.9
Other non-current assets		41.8	25.3
Total non-current assets		701.4	675.5
Asset held for sale	15	-	28.9
Cash and cash equivalents		35.2	40.6
Trade receivables		199.6	187.8
Inventories		70.9	71.9
Other current assets		57.0	50.2
Total current assets		362.7	379.4
Total Assets		1,064.1	1,054.9
LIABILITIES AND SHAREHOLDERS' EQUITY Long-term interest-bearing debt	10	432.0	430.1
Lease liabilities (non-current)	11	46.9	48.9
Deferred tax	16	0.2	0.3
Other non-current liabilities		13.4	6.6
Total non-current liabilities		492.4	485.9
Liabilities directly associated with assets held for sale	15	-	28.4
Current portion of interest-bearing debt	10	91.9	37.8
Lease liabilities (current)	11	10.9	10.5
Trade payables		122.0	92.8
Income tax		1.2	7.6
Other current liabilities		152.7	192.3
Total current liabilities		378.6	369.3
Shareholders' equity		173.2	179.0
Non-controlling interest in consolidated subsidiary		19.9	20.7
Total equity	13	193.1	199.6
Total Liabilities and Shareholders' Equity		1,064.1	1,054.9

‌Condensed Consolidated Statement of Cash Flows (unaudited)‌

(In USD millions) Six Months Ended 30 June Year Ended 31

Dec.

	Note	2026	2025	2025
Profit (loss) before income taxes		11.2	(29.4)	(48.2)
Taxes paid		(2.1)	(5.2)	(7.5)
Depreciation and amortisation	6, 8, 9	41.7	36.6	78.1
Impairment of fixed assets / assets held fore sale		-	-	33.1
Share-based compensation expenses		0.0	0.1	0.2
(Gain)/loss on asset disposals - net	6	(0.2)	0.9	0.6
Share of result from associated companies		0.3	0.0	0.0
Conversion of Royalty expense to investment		(1.0)	-	-
Write-off of unamortised debt fees re previous		-	16.2	16.2
financing
Effect of exchange rate movements borrowings		(0.9)	(18.2)	(20.0)
Interest expensed		27.6	52.0	82.9
Loss/(gain) on sale/purchase of business	15	1.0	8.7	8.7
Decrease/(increase) in trade receivable/other current assets		(33.6)	11.5	(8.3)
(Increase)/decrease in inventories	(0.2)		(2.9)	1.6
(Decrease)/increase in trade payable/other current	(28.5)		(43.1)	(18.3)
liabilities
Change in other operating assets/liabilities net, inc. non-cash fx effects		4.6	(2.5)	(13.8)
Net cash flow from operating activities		19.9	24.7	105.4
Capital expenditures	6	(34.3)	(25.8)	(51.7)
Investment in development projects	8	(4.5)	(1.0)	(5.3)
Proceeds from sale of tangible fixed assets and marketable securities		0.3	3.6	4.1
Proceeds from sale of business	15	0.5	4.6	4.6
Investment in / loans to associated entities		-	(2.2)	(2.2)
Business acquisition and investment in subsidiaries net of cash acquired	15	(1.0)	(5.6)	(21.4)
Net cash flow from investing activities		(39.1)	(11.8)	(71.9)
New bond issue	10	-	427.8	427.8
Repayment of issued bonds	10	(7.5)	(218.1)	(218.1)
Net borrowing under RCF, and other long-term debt		70.7	46.5	68.0
Repayments under revolving facilities and other long term debt		(7.4)	(229.5)	(266.3)
Debt fees paid		-	(8.9)	(8.9)
Interest paid		(24.0)	(45.4)	(77.3)
Repayment of lease obligations		(5.4)	(2.9)	(8.0)
Repayment of contributed surplus to shareholders		(12.8)	(5.6)	(17.3)
Net proceeds from equity issue		-	-	20.0
Net cash flow from financing activities		13.6	(36.1)	(80.2)

(In USD millions) Six Months Ended 30 June Year Ended 31

Dec.

Effect of exchange rate changes on cash and cash equivalents	0.1	6.8	6.6
Net (decrease)/increase in cash and cash equivalents	(5.5)	(31.0)	(40.2)
Cash and cash equivalents at beginning of the period	40.6	80.6	80.6
Cash and cash equivalents at the end of the period	35.2	49.6	40.6

‌Condensed Consolidated Statement of Changes in Shareholders' Equity (unaudited)‌

(In USD millions)	Common shares	Additional Paid In Capital	Accumulated Deficit	Accumulated Other Comprehensive Gain/(Loss)	Contributed Surplus	Non-controlling interests	Total Shareholders' Equity
Balance at 31 December 2024	0.9	1,119.0	(1,634.6)	(14.1)	740.1	15.4	226.9
Share based compensation	-	0.2	-	-	-	-	0.2
Reallocation of additional paid in capital to contributed surplus	-	(974.4)	-	-	974.4	-	-
Repayment of capital to shareholders	-	-	-	-	(17.3)	-	(17.3)
Net proceeds from equity issue	0.1	19.7	-	-	-	-	19.8
Net loss Attributed to controlling interests	-	-	(58.7)	-	-	-	(58.7)
Share of result attributed to non-controlling interest	-	-	-	-	-	5.2	5.2
Translation differences	-	-	-	23.5	-	0.0	23.5
Balance at 31 December 2025	1.0	164.5	(1,693.3)	9.5	1,697.2	20.7	199.6
Share based compensation	-	0.0	-	-	-	-	0.0
Repayment of capital to shareholders	-	-	-	-	(12.8)	-	(12.8)
Net loss Attributed to controlling interests	-	-	4.5	-	-	-	4.5
Share of result attributed to non-controlling interest	-	-	-	-	-	(0.7)	(0.7)
Translation differences	-	-	-	2.5	-	0.0	2.5
Balance at 30 June 2026	1.0	164.5	(1,688.8)	12.1	1,684.4	19.9	193.1

‌Notes‌

Note 1 General information

Note 2 Summary of significant accounting policies Note 3 Segment Information

Note 4 Revenue from contracts with customers Note 5 Other Financial Items

Note 6 Property plant and equipment Note 7 Goodwill

Note 8 Intangible assets Note 9 Right of use assets

Note 10 Long-term, Interest Bearing Debt Note 11 Leases

Note 12 Fair Value of Financial Instruments Note 13 Equity

Note 14 Earnings Per Share Note 15 Business Acquisitions Note 16 Income Tax

Note 17 Commitments and contingencies

Note 18 Investment in Associates and Joint Ventures Note 19 Related Parties

Note 20 Subsequent Events

‌Note 1 General information‌

Description of business

Archer Limited is an international oilfield service company providing a variety of oilfield and renewable energy products and services through its Area organization. Services include platform drilling, land drilling, modular rigs, engineering services, equipment rentals, wireline services, production monitoring, well imaging and integrity management tools. Archer was incorporated in Bermuda on 31 August, 2007.

Archer Limited, along with its subsidiaries, ("Archer" or the "Company") is a global energy services company with a heritage in drilling and well services that stretches back over 50 years. The Company is publicly traded on the Oslo Stock Exchange under the ticker ARCH.

Archer provides drilling and well services to the global energy industry, employing 3,764 globally at 30 June 2026. Archer operates in over 40 countries, providing sustainable high-quality services and innovative technology to optimize Archer's customer's energy solutions. 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. Archer holds a leading and technologically advanced position within plug and abandonment (P&A), delivering integrated solutions that enable safe, efficient and permanent well decommissioning in mature basins globally. Leveraging decades of operational experience, proprietary technology and engineering expertise, Archer supports operators in meeting regulatory requirements while optimizing cost and reducing environmental footprint.

The Group's operations are managed through four segments: Platform Operations, Well Services, Land Drilling and Renewables.

Platform Operations

Platform Operations delivers drilling operations, maintenance and engineering services on offshore production platforms, primarily in the North Sea and other mature basins.The segment focuses on safe, efficient and cost-effective platform drilling, modification projects and integrated operations to maximize uptime and asset value for operators. The segment also supports plug and abandonment (P&A) and decommissioning activities, leveraging Archer's platform drilling expertise and integrated service offering to deliver safe and efficient end-of-life well solutions.

Well Services

Well Services provides a broad portfolio of well intervention, wireline and downhole services aimed at improving well performance and extending field life. The segment supports customers throughout the well lifecycle, from completion and stimulation to maintenance and plug and abandonment.

Land Drilling

Land Drilling comprises Archer's fleet of high-specification land drilling rigs, primarily deployed in the Vaca Muerta basin in Argentina. With a long operational heritage in the region, the segment delivers efficient and reliable drilling services to leading operators, supported by strong local expertise, modern rig technology and a consistent focus on safety and performance in unconventional shale developments.

Renewables

Renewables leverages Archer's engineering competence, operational experience and technology to support energy transition activities. The segment provides services within areas such as offshore wind and geothermal low-carbon energy solutions.

As used herein, unless otherwise required by the context, the term "Archer" refers to Archer Limited and the terms "Company," "we," "Group," "our" and words of similar import refer to Archer and its consolidated subsidiaries. The use herein of such terms as "group", "organization", "we", "us", "our" and "its" or references to specific entities is not intended to be a precise description of corporate relationships.

Going Concern

The financial statements have been prepared on a going concern basis. This assumption is based on the liquidity position of the Group, forecasted operating results, and the market outlook for the oil service sector as at 30 June 2026.

‌Note 2 Summary of significant accounting policies Basis of presentation‌

These interim condensed consolidated financial statements for the six months period ended 30 June 2026 have been prepared in accordance with IFRS® Accounting Standards and IAS 34 Interim Financial Reporting. The accounting policies applied are consistent with those applied in the Group's 2025 annual financial statements. The statements were authorised for issue by the Board of Directors on 13 August 2026 and have not been audited. They do not include all the information and disclosures required in a complete set of IFRS financial statements and should therefore be read in conjunction with the Company's IFRS consolidated financial statements for the year ended 2025, which were issued on 23 April 2026.

The comparative figures for the second quarter and half year of 2025 have been restated from US GAAP to IFRS. Information on the transition from US GAAP to IFRS is provided in the Group's 2025 annual financial statements.

The amounts are presented in United States Dollars, USD, or $ rounded to the nearest, unless otherwise stated. We present our financial statements on a continuing business basis and separately present discontinued operations. The accounting policies set out below have been applied consistently to all periods in these consolidated financial statements.

Basis of consolidation

Investments in companies in which we directly or indirectly hold more than 50% of the voting control are generally consolidated in our financial statements. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies.

Entities in which we do not have a controlling interest but over which we have significant influence are accounted for under the equity method of accounting. Our share of after-tax earnings of equity method investees is reported under Share of results of unconsolidated associates. A list of all significant consolidated subsidiaries is disclosed in the Annual Report 2025 - Note 37 Subsidiaries. Changes are included in Note 15 Business Acquisitions.

Intercompany transactions and internal sales have been eliminated through consolidation.

Reclassifications

Certain amounts in the prior years consolidated financial statements may be reclassified when necessary to conform to the current year's presentation.

Use of estimates

The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Future events and their effects cannot be predicted with certainty. Accordingly, our accounting estimates require the exercise of judgement.While management believes the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ materially from those estimates. Estimates are used for, but are not limited to, determining the following: allowance for doubtful accounts, recoverability of long-lived assets, goodwill and intangibles, useful lives used in depreciation and amortization, income taxes and valuation allowances and purchase price allocations. The accounting estimates used in the preparation of the consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes.

‌Note 3 Segment Information‌

Archer reports financial information to its Board of Directors, which acts as the Group's Chief Operating Decision Maker ("CODM"). The CODM reviews segment results to assess performance and to allocate resources. Operating segments are identified based on the nature of services provided, and the internal reports regularly reviewed by the CODM in accordance with IFRS 8 Operating Segments.

The Group presents its operations under the following reporting segments:

Platform Operations
Well Services
Renewables
Land Drilling

Corporate costs and corporate assets are reported separately and are not allocated to operating segments.

The accounting policies applied in determining segment information are consistent with the accounting principles used in the consolidated financial statements.The tables presented below and on the following page disclose revenues, depreciation and amortisation, operating income, capital expenditures, goodwill and total assets by segment.

Segment information Period Ended 30 June 2026

Platform Operations Well Services Renewables Land Drilling Corporate Total

(In USD millions) Operating revenue	Q2 96.2	H1 203.3	Q2 88.9	H1 171.9	Q2 25.3	H1 65.3	Q2 52.1	H1 100.5	Q2 -	H1 0.1	Q2 262.6	H1 541.1
Personnel Expenses	62.3	130.0	39.9	76.9	9.1	21.0	17.1	34.9	0.6	2.1	129.0	264.9
Other Operating Expenses, excluding loss on sale of equipment	21.9	47.2	29.1	58.8	14.7	41.7	22.0	43.8	0.9	2.4	88.6	193.8
EBITDA	12.0	26.1	19.9	36.2	1.5	2.4	13.0	21.8	(1.5)	(4.4)	44.9	82.2
Depreciation and amortisation	6.1	11.6	9.3	17.1	1.4	3.1	4.7	10.1	-	-	21.5	41.7
(Gain)/Loss on sale of equipment	-	-	(0.2)	(0.2)	-	-	-	-	-	-	(0.2)	(0.2)
Loss on sale of business	-	-	-	-	-	-	-	1.0	-	-	-	1.0
Operating income/net income	5.9	14.5	10.8	19.3	0.1	(0.7)	8.2	10.8	(1.5)	(4.4)	23.7	39.7
Total financial items											(16.4)	(28.5)
Profit (loss) before income taxes											7.3	11.2
Capital Expenditures
Property, plant and equipment	5.5	10.9	3.9	8.8	1.6	2.4	8.8	9.9	0.1	0.3	19.9	34.3
Intangible assets	-	-	2.3	4.5	-	-	-	-	-	-	2.3	4.5

Segment information Period Ended 30 June 2025

Platform Operations Well Services Renewables Land Drilling Corporate Total

(In USD millions) Operating revenue	Q2 117.8	H1 223.5	Q2 71.4	H1 139.3	Q2 34.33	H1 56.8	Q2 73.2	H1 175.7	Q2 -	H1 0.5	Q2 296.7	H1 595.8
Personnel Expenses	66.4	127.4	30.0	61.5	12.0	18.9	33.8	74.6	1.2	2.0	143.4	284.4
Other Operating Expenses, excluding loss on sale of equipment	31.8	63.8	24.1	46.3	19.3	32.4	35.5	87.3	1.0	2.4	111.6	232.3
EBITDA	19.6	32.3	17.3	31.5	3.0	5.5	3.9	13.8	(2.2)	(3.9)	41.6	79.2
Depreciation and amortisation	4.2	8.5	5.7	12.5	1.6	3.0	6.1	12.6	-	-	17.6	36.6
Loss on sale of business	-	-	-	-	-	-	8.7	8.7	-	-	8.7	8.7
Operating income/net income	15.4	23.8	11.6	19.0	1.4	2.5	(10.9)	(7.5)	(2.2)	(3.9)	15.3	33.8
Total financial items											(12.0)	(63.2)
Profit (loss) before income taxes											3.3	(29.4)
Capital Expenditures
Property, plant and equipment	4.3	9.3	5.8	7.7	2.0	3.5	1.9	3.1	1.1	2.1	15.1	25.8
Intangible assets	-	-	0.5	1.0	-	-	-	-	-	-	0.5	1.0

‌Note 4 Revenue from contracts with customers‌

The following table provides information about receivables, contract assets and contract liabilities from our contracts with customers:

Revenue from contracts with customers

(In USD millions) Three Months Ended 30 June

Six Months Ended 30 June Year Ended 31 Dec.

			2026		2025		2026			2025	2025
Revenue from contract with customers			259.7		293.5		535.5			587.0	1,174.6
Reimbursable revenue / handling income			2.0		2.4		4.1			7.2	19.0
Revenue from leasing			0.7		0.8		1.5			1.6	3.1
Total Revenues			262.6		296.7		541.1			595.8	1,196.7
Segment information 2026
(In USD millions) Platform Well Services Renewables Land Drilling Corporate Total Operations
	Q2	H1	Q2	H1	Q2	H1	Q2	H1	Q2	H1	Q2	H1
Norway	77.4	160.8	41.2	81.1	12.8	15.0	-	-	-	-	131.4	256.8
Europe, excluding Norway	18.1	34.7	12.3	20.8	5.4	43.2	-	-	0.0	0.1	35.8	98.8
North America	-	-	20.9	42.1	-	-	0.8	1.6	-	-	21.7	43.7
South America	0.7	7.8	5.0	10.0	-	-	51.4	99.0	-	-	57.1	116.8
Other geographical markets	-	-	9.5	17.8	7.1	7.1	-	-	-	-	16.5	24.9
Total operating revenue	96.2	203.3	88.9	171.9	25.3	65.3	52.1	100.5	0.0	0.1	262.6	541.1
Segment information 2025
(In USD millions) Platform Well Services Renewables Land Drilling Corporate Total Operations
	Q2	H1	Q2	H1	Q2	H1	Q2	H1	Q2	H1	Q2	H1
Norway	82.4	155.1	28.1	57.1	11.2	15.5	0.2	0.5	-	0.3	121.8	228.5
Europe, excluding Norway	27.2	52.7	9.2	18.0	23.1	41.3	-	-	0.0	0.2	59.7	112.1
North America	-	-	13.2	27.0	-	-	0.8	1.6	-	-	13.9	28.6
South America	8.2	15.7	0.9	5.2	-	-	72.2	173.6	-	-	81.3	194.5
Other geographical markets	-	-	20.1	32.1	-	-	-	-	-	-	20.1	32.1
Total operating revenue	117.8	223.5	71.4	139.3	34.3	56.8	73.2	175.7	0.0	0.5	296.7	595.8

‌Note 5 Other Financial Items‌

Other Financial Items

(In USD million) Three Months Ended

30 June Six Months Ended 30 June Year Ended 31 Dec.

	2026	2025	2026	2025	2025
Foreign exchange gains / (losses)	(3.1)	1.6	(0.3)	8.6	8.9
Extinguishment of accrued prepaid debt fees	-	-	-	(16.2)	(16.2)
Other items	1.1	0.9	(0.9)	(3.6)	(5.6)
Total other financial items	(2.0)	2.5	(1.3)	(11.2)	(12.5)

Foreign exchange gains for the six months ended 30 June 2026, includes net gains of $1.6 million in subsidiaries with NOK functional currency. The FX gains and losses in subsidiaries reporting in NOK are partially offset in equity by translation adjustments, recognised in accumulated other comprehensive income, which result from the translation of the NOK financial statements to USD prior to consolidation.

Other financial items included costs relating to recent business acquisitions.

‌Note 6 Property plant and equipment‌
(In USD millions)	Operational equipment	Other fixed assets	Assets under construction	TOTAL
Balance at 31 December 2025	292.7	22.1	10.2		324.9
Additions	16.9	0.3	17.1		34.3
Assets acquired	0.4	-	-		0.4
Transferred from inventory	7.2	-	-		7.2
Reclassification	14.1	-	(14.1)		0.0
Disposals	(3.6)	-	-		(3.6)
Depreciation	(30.8)	(2.5)	-		(33.3)
Translation adjustments	0.8	0.1	-		0.9
Balance at 30 June 2026	297.8	20.0	13.2		330.8

Impairment of property, plant and equipment

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets for which impairment losses have been recognised in prior periods are reviewed for possible reversal when there is an indication that the impairment loss has decreased or no longer exists. The Group has not identified any indicators of impairment or impairment reversal as at 30 June 2026.

‌Note 7 Goodwill‌

Goodwill represents the excess of purchase price over the fair value of tangible and identifiable intangible assets acquired.

Goodwill
(In USD millions)	Platform Operations	Well Services	Renewables	Land Drilling	Total
Balance at 31 December 2025	78.2	112.9	3.4	1.7	196.2
Goodwill recognised on acquisition of Isol8	-	7.2	-	-	7.2
Translation adjustments	0.3	0.7	0.0	-	1.0
Balance at 30 June 2026	78.5	120.8	3.4	1.7	204.4

We test goodwill for impairment on an annual basis during the fourth quarter and between annual tests if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Group has not identified any impairment indicators as at 30 June 2026.

‌Note 8 Intangible assets‌
(In USD millions)	Customer relations	Trade name	Other intangible Assets	Internal developed assets	TOTAL
Balance at 31 December 2025	13.1	2.1	8.1	9.3	32.5
Additions	-	-	-	4.5	4.5
Recognized on acquisition	-	-	0.4	0.0	0.4
Depreciation	0.8	-	1.4	0.0	2.2
Translation adjustment	-	-	0.0	0.2	0.2
Balance at 30 June 2026	12.3	2.1	7.0	13.9	35.3

Impairment of Intangible assets

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Intangible assets with an indefinite useful life, or not yet available for use, are tested for impairment annually. Intangible assets for which impairment losses have been recognised in prior periods are reviewed for possible reversal when there is an indication that the impairment loss has decreased or no longer exists. The annual impairment test was performed as at 31 December 2025, and the Group has not identified any indicators of impairment or impairment reversal as at 30 June 2026.

‌Note 9 Right of use assets‌
(In USD millions)	Right of use Assets
Balance at 31 December 2025	57.6
Additions	3.4
Depreciation	(6.2)
Translation adjustments	0.1
Balance at 30 June 2026	54.9

Right-of-use assets mainly relate to leases for offices, workshops, storage facilities, and operational equipment, including drilling rigs. These lease agreements support the Group's operations across key locations without requiring ownership of the underlying assets.

‌Note 10 Long-term, Interest Bearing Debt‌

(In USD millions) 30 June 2026 31 December 2025

	Loan balance	Unamortised debt issuance costs	Loan balance less unamortised debt issuance costs	Loan balance	Unamortised debt issuance costs	Loan balance less unamortised debt issuance costs
Senior Secured Bonds	417.5	(5.7)	411.8	425.0	(6.5)	418.5
Overdraft facilities	57.5	(1.0)	56.4	16.5	(1.0)	15.5
Other loans	55.6	-	55.6	33.9	-	33.9
Total loans	530.5	(6.7)	532.9	475.4	(7.5)	467.9
Less: current portion	(93.8)	1.9	(91.9)	(39.7)	1.9	(37.8)
Long-term portion of interest-bearing debt	436.8	(4.9)	432.0	435.7	(5.6)	430.1
Senior Secured Bonds

In February 2025, Archer's indirectly wholly owned subsidiary, Archer Norge AS, issued 5 year $425 million senior secured bonds, carrying a coupon of 9.5% (the "Senior Secured Bonds"). From 2026, the Company will redeem $15 million of the bonds in two annual instalments of $7.5 million each. The Company has an option to redeem the bonds at (i) the make-whole price for the first 3.0 years, (ii) at 104.75% of the nominal amount after 3.0 years until 3.5 years,

(iii) at 103.8% of the nominal amount after 3.5 years until 4.0 years, (iv) at 102.85% of the nominal amount after 4.0 years until 4.5 years, and (v) at 100.5% after 4.5 years. The Senior Secured Bonds shares the same security as the Revolving Credit Facility, subject to the senior status of the Revolving Credit Facility.

The Senior Secured Bonds contains certain financial covenants, including, among others:

The Company shall ensure that the free liquidity of the Group is at all times the higher of USD 30 million and
5.00 percent of gross interest-bearing debt.
The Company shall ensure that the interest coverage ratio is minimum 2.00:1.
The Senior Secured Bonds contains events of default which include payment defaults, breach of financial covenants, breach of other obligations, breach of representations and warranties, insolvency, illegality, unenforceability, curtailment of business, claims against an obligor's assets, appropriation of an obligor's assets, failure to maintain exchange listing, material adverse effect, repudiation and material litigation. In addition, there are cross default clauses in the event of the obligor defaulting on other issued debt.
Subsequent to quarter-end, on 10 July 2026, the Company received the proceeds from a USD 30 million tap issue under its outstanding senior secured bond due 2030, increasing the outstanding principal amount of the bond to USD 447.5 million.
As of 30 June 2026, the Company is compliant with all covenants under the Senior Secured Bonds.
Revolving Credit Facility
In connection with the Senior Secured Bonds issuance, Archer established a $75 million revolving credit facility, ranking super senior to the Senior Secured Bonds, with a tenor of 4.5 years (the "Revolving Credit Facility"). During the second quarter of 2026, the Revolving Credit Facility was increased by $20 million to $95 million. The interest on the loan is Secured Overnight Financing Rate, or "SOFR" + a margin of 300 basis points. In addition, Archer established a guarantee facility of $5 million. The total $95.0 million of the Revolving Credit Facility is carved out into two overdraft facility of
$45.0 million and $50.0 million respectively. The Revolving Credit Facility is secured by pledges over shares in material subsidiaries, assignment over intercompany debt and guarantees issued by the material subsidiaries.
The Revolving Credit Facility contains certain financial covenants, including, among others:
The Company shall ensure that the free liquidity of the Group is at all times the higher of USD 30 million and
5.00 percent of gross interest-bearing debt.

The Company shall ensure that the interest coverage ratio is minimum 2.50:1.

The Revolving Credit Facility contains events of default which include payment defaults, breach of financial covenants, breach of other obligations, breach of representations and warranties, insolvency, illegality, unenforceability, curtailment of business, claims against an obligor's assets, appropriation of an obligor's assets, failure to maintain exchange listing, material adverse effect, repudiation and material litigation. In addition, there are cross default clauses in the event of the obligor defaulting on other issued debt.

As of 30 June 2026, the Company is compliant with all covenants under this Revolving Credit Facility.

Other loans

As described above, a total of $95.0 million of the Revolving Credit Facility is carved out into overdraft facilities. A total of $57.5 million was drawn under the overdraft facilities at 30 June 2026 and is recorded as current interest bearing debt.

We have finance arrangements relating to equipment in our Well Services and Platform Operation division. On 30 June 2026, the balance included in Other debt relating to these arrangements was $36.6 million.

Movements in interest-bearing borrowings

The table below provides a reconciliation of the Group's interest-bearing debt from the beginning to the end of the reporting period, distinguishing between current and non-current portions. It includes both cash flows, such as new borrowings and repayments, and non-cash movements, including changes in transaction costs and currency revaluation.

Movements in interest-bearing borrowings		2025
(In USD millions)	Non current		Current	Total
Carrying amount as at 1 January	418.1		23.2	441.3
Cash flows:
New bond issue	412.8		15.0	427.8
Repayment of bonds	(218.1)		-	(218.1)
Net borrowing under RCF, and other long-term debt	51.5		16.5	68.0
Repayment under RCF, and other long-term debt	(242.9)		(23.4)	(266.3)
Transaction fees in relation to refinancing	(8.9)		-	(8.9)
Non-cash flows
Aqcuired debt	2.1		-	2.1
Change in prepaid debt fees	12.4		-	12.4
Change due to currency revaluation	3.3		-	3.3
Carrying amount as at 31 December Movements in interest-bearing borrowings	430.1	2026	37.8	467.9
(In USD millions)	Non current	Current		Total
Carrying amount as at 1 January	430.1	37.8		467.9
Cash flows:
New bond issue	-	-
Repayment of bonds	(7.5)	-		(7.5)
Net borrowing under RCF, and other long-term debt	10.4	60.4		70.8
Repayment under RCF, and other long-term debt	(1.8)	(6.3)		(8.1)
Transaction fees in relation to refinancing	-	-		-
Non-cash flows
Aqcuired debt	-	-		-
Change in prepaid debt fees	0.7	-		0.7
Change due to currency revaluation	0.1	-		0.1
Carrying amount as at 30 June	432.0	91.9		523.9

‌Note 11 Leases‌

The company has historically leased some operating assets, office and warehouse facilities and office equipment under operating leases. For material operating leases, we have recognised the relevant right of use assets and lease liabilities in our balance sheet. The leases have remaining lease terms of 1 to 13 years at 3 June 2026. Some operating leases include options to extend the leases for a further 20 years.

Details of leased assets are reported in note 9.

For the capitalisation of right of use assets, we have calculated an incremental borrowing rate, or IBR, for discounting each lease's cash-flows to arrive at an initial value for the lease liability and right of use asset. The IBR is calculated as a function of the following elements/considerations;

Base rate - generally the inter-bank lending rate in the relevant jurisdictions,
Credit spread - we estimate the effect of the lessee credit worthiness
Country risk premium
Inflation differential
Contract term
Security or collateral provided in the lease contract.

Significant judgment is required in estimating some of these elements. We apply a consistent methodology in estimating IBR for each lease.

We have elected not to recognise the right of use of assets and lease liability for short term leases.

The Company's leasing activities for the six-months period ended 30 June 2026 are analysed in the table below;

Lease obligations

(In USD million)

Lease obligations at 31 December 2025 59.4

New lease capitalisations 3.4

Repayments (5.4)

Translation adjustments 0.4

Lease obligations at 30 June 2026 57.8

Supplemental information 30 June 2026

In USD millions)	Short term leases	Capitalised leases
Interest on lease liabilities		2.5
Total lease costs	20.7	6.5
Weighted average remaining lease term in years*		15.5
Weighted average discount rate		8.0%

* Includes option extensions where we are reasonably certain that the extension will be exercised.

‌Note 12 Fair Value of Financial Instruments‌

The estimated fair value and the carrying value of our financial instruments are as follows:

Carrying value of financial instruments

(In USD millions) 30 June 2026 31 December 2025

	Fair Value	Carrying Value	Fair Value	Carrying Value
Non-derivatives
Cash and cash equivalents	35.2	35.2	40.6	40.6
Trade receivables	199.6	199.6	187.8	187.8
Trade payables	(122.0)	(122.0)	(92.8)	(92.8)
Senior Secured Bonds (current and non-current)	(443.6)	(411.8)	(434.4)	(418.5)
Overdraft facilities (current and non-current)	(56.4)	(56.4)	(15.5)	(15.5)
Other loans (current and non-current)	(55.6)	(55.6)	(33.8)	(33.8)
Lease liabilities (current and non-current)	(59.1)	(59.1)	(59.4)	(59.4)

The aforementioned financial assets are measured at fair value on a recurring basis as follows:

Financial assets and liabilities

(In USD millions) 30 June

2026 Fair Value Measurements at Reporting Date Using

Assets	Fair Value	Level 1	Level 2	Level 3
Cash and cash equivalents	35.2	35.2	-	-
Trade receivable	199.6	-	199.6	-
Liabilities Trade payable	(122.0)	-	(122.0)	-
Senior Secured Bonds (current and non-current)	(443.6)	-	(443.6)	-
Overdraft facilities (current and non-current)	(56.4)	-	(56.4)	-
Other loans (current and non-current)	(55.6)	-	(55.6)	-
Lease liabilities (current and non-current)	(59.1)	-	(59.1)	-

Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs

Level 3: Significant unobservable inputs

We used a variety of methods and assumptions, which are based on market conditions and risks existing at the time, to estimate the fair value of our financial instruments. For certain instruments, including cash and cash equivalents, it is assumed that the carrying amount approximated fair value due to the short-term maturity of those instruments.

The fair value of Senior Secured Bonds is based on the tap issue price at 106.25%.

The fair value of the current portion of long-term debt is estimated to be equal to the carrying value, since it is repayable within twelve months. The fair value of the long-term portion of floating rate debt is estimated to be equal to the carrying value adjusted for the prepaid debt fees (outstanding balance), since it bears variable interest rates, which are reset on a quarterly basis. This debt is not freely tradable, and we cannot purchase them at prices other than the outstanding balance plus accrued interest.

‌Note 13 Equity‌
		30 June 2026		31 Dec. 2025
	Shares	$ million	Shares	$ million
Authorized share capital	150,000,000	1.5	150,000,000	1.5
Issued, outstanding and fully paid share capital	99,495,398	1.0	99,495,398	1.0

‌Note 14 Earnings Per Share‌

The computation of basic earnings per share (EPS) is based on the weighted average number of shares outstanding during the period. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. The denominator used for the computation of basic and diluted earnings was computed as follows:

Weighted number of shares outstanding

(In thousands) Six Months Ended 30 June Year Ended 31 Dec.

Denominator	2026	2025	2025
Weighted-average common shares outstanding	99,495	90,538	92,840
Effect of potentially dilutive common shares*	117	-	-
Weighted-average common shares outstanding and assumed conversions	99,612	90,538	92,840
* No dilution effect is recognised for periods reporting a net loss.
‌Note 15 Business Acquisitions‌
Acquisitions and sales in 2026
Isol8 (Holdings) Limited

On 28 May 2026 Archer Assets UK Ltd, a 100% owned Archer subsidiary, completed the purchase of 100% of the shares in an unrelated company Isol8 (Holdings) Limited a UK registered entity with two wholly owned subsidiaries, Isol8 Limited and Isol8 Inc., which have operations in the UK and USA respectively.

The Isol8 Group is involved in technology development, specialising in alloy sealing and exothermic heaters and initiators which can be used in the provision of wellbore barrier solutions. The rationale for the acquisition is the development of a market-leading plug, wellbore barrier and P&A offering through the further development and subsequent use of technology and patents owned by Isol8.

Purchase consideration of $7.4 million has been recorded in respect of the acquisition comprising:

$1.4 million initial cash advance, which was recorded as a shareholder loan
Deferred consideration of $3 million payable in two equal instalments due 12 and 18 months after the completion.
Contingent consideration of $6.2 million (present value) forms part of the total purchase consideration.

The fair value of assets acquired is summarised below:

Fair value of assets acquired (preliminary)

USD millions

Cash 0.3

Inventories 0.2

Other current assets 0.1

Property plant and equipment 0.3

Patents	0.3
Deferred tax asset	1.0
Current liabilities	(0.7)
Shareholder loan	(1.4)
Net Assets	0.2

The $7.2 million excess of the purchase consideration over the fair value of the assets is recognized as goodwill, which represents the assembled workforce and experience and know-how acquired, and synergies within Well services segment.

Sale of workover business in the southern part of Argentina

During the fourth quarter of 2025, we initiated the sale of our remaining workover and pulling unit business in the southern part of Argentina. The market for workover services in this region has been declining, driven by reduced activity in conventional oil production in southern Argentina. The divestment represents a further reduction of risk and exposure in a structurally declining market. Going forward, Archer's strategic focus is to grow its drilling business in the expanding unconventional market in Vaca Muerta.

The sale of 12 workover units and 12 pulling units was completed on 30 January 2026. The transaction involved the transfer of all assets and liabilities related to the workover business, including approximately 750 employees.

As a result of the expected loss on the sale, a total impairment loss of $25.3 million was recognised in 2025. This loss relates to the impairment of assets classified as held for sale following the decision to divest the business.

Upon finalisation of the transaction in the first quarter of 2026, including the settlement and write-off of intercompany balances, an additional loss of $1.0 million was recognised.

Acquisitions and sales in 2025

Premium Oilfield Services LLC

In September 2025 Archer Well Company Inc, a 100% owned Archer subsidiary, agreed to the purchase 100% of the members' interests in Premium Oilfield Services LLC, (or "Premium"), from Composite Intermediate Holdings LLC, an unrelated third party for $20.7 million. Premium is engaged in the provision of wireline, thru-tubing fishing, and whipstocks services in the North American oilfield market. The fair value of assets acquired is summarised below:

Fair value of assets acquired (preliminary)

USD millions

Cash 1.1

Receivables 8.5

Inventories 1.3

Property plant and equipment 11.5

Intangible assets:Trade name and customer relations 3.2

Lease obligations (4.5)

Payables and other liabilities (3.6)

Net Assets 17.4

The $3.25 million excess of the purchase consideration over the fair value of the assets is recognized as goodwill, which represents the assembled workforce and experience and know-how acquired, and synergies within Well services segment.

Wellconnection Norway AS and Wellmaching AS

In June 2025 Archer AS agreed to the purchase of two subsidiaries, Well Machining AS and Wellconnection Norway AS from Wellconnection Group AS, an unrelated third party for NOK 30,200,000, or USD 3.0 million. Wellconnection is a

provider of well services and has historically provided services to our Well Services division. The purchase will assist in continuity of supplies necessary of Archer's service offering. In addition to cash price of NOK 30.2 million, Archer has assumed NOK 27.2 million of shareholder loans payable to the acquired entities. The fair value of assets acquired is summarised below:

Fair value of assets acquired (preliminary)

USD millions

Cash 1.6

Receivables 3.1

Inventories 0.1

Property plant and equipment 2.1

Intangible assets: Research and development 0.2

Deferred tax 1.2

Payables and other liabilities (7.8)

Net Assets 0.5

The $2.5 million excess of the purchase consideration over the fair value of the assets is recognized as goodwill, which represents the assembled workforce and experience and know-how acquired, and synergies within Well services segment.

The table below shows the revenues and net results included in our consolidated 2025 financial statements relating to the acquisitions above, and corresponding pro forma figures which would have been included had the acquisitions occurred January 1, 2025.

Additional data in USD millions

Acquisition Included in 2025 consolidated income statements Full year 2025

	Revenue	Net result	Revenue	Net result
Wellconnection	1.9	(0.2)	3.2	2.8
Premium Oilfield Services LLC	6.9	0.5	29.2	2.1
Total	8.8	0.3	32.4	4.9

D&K Logistics Grandeur Pte Ltd.

On 15 May 2025 Archer Holdco LLC, a 100% owned Archer subsidiary, entered into an agreement to purchase D&K Logistics Grandeur Pte Ltd, a special purpose entity (or "SPV") based in Singapore from Luca Energy Private Limited, an unrelated third party.The SPV holds one asset, a modular unit, the Asian Pearl 101 drilling rig, which will be deployed by Archer's platform operations division.The purchase is accounted for as an asset acquisition.The SPV was purchased for $4.7 million, being the fair value of its single asset.

Sale of part of Land Drilling operations

During the second quarter 2025, we sold part of our land drilling operations, comprising two rigs and associated assets and liabilities to Pan American Energy, for $4.6 million. The transaction resulted in the recognition of a loss on sale of $8.7 million.

‌Note 16 Income Tax‌

Income Tax

Income tax expense for the six months ended 30 June 2026 was $7.4 million (Six months ended 30 June 2025: $(3.4) million).

The Group's effective tax rate (ETR) for the period was 66.2% (Six months ended June 2025: 11.7%). The ETR reflects the distribution of profits and losses between jurisdictions. While taxable profits generated income tax expense in

certain jurisdictions, losses incurred in other jurisdictions did not result in a corresponding tax benefit due to unrecognized deferred tax assets. This mismatch between taxable profits and losses across the Group resulted in an elevated effective tax rate for the period.

Deferred tax assets and liabilities

Deferred tax assets decreased by $5.5 million during the period (Six months ended June 2025: increase by $11.5 million). The decrease in deferred tax assets is primarily due to taxable profits in Norway, resulting in a reduction of tax loss carryforwards.

Deferred tax liabilities decreased by $0.1 million.

No material uncertain tax positions were recognised or resolved during the period. There have been no changes in applicable tax rates or tax laws that significantly impact the Group's tax position.

Management continues to assess the recoverability of deferred tax assets on the basis of expected future taxable profits.

‌Note 17 Commitments and contingencies‌

Purchase commitments

As of 30 June 2026, we have committed to purchase obligations including capital expenditures amounting to $57.1 million.

Contingencies

For recent acquisitions, contingent consideration is discussed in note 15 above. In relation to the acquisition of Iceland Drilling, the minority shareholder has a contractual option to sell its shares to Archer, with the exercise price determined based on a valuation linked to Archer's trading multiple and an EBITDA-based valuation of Iceland Drilling's historical performance.

The Group has recognised receivables, related to several large change orders in our offshore wind project, and we are in dispute with a major subcontractor related to defects in delivery in connection with the offshore wind project. The recoverability of these balances requires management judgement and is dependent on the outcome of ongoing negotiations and supporting contractual positions. While management believes the recognised receivables are recoverable, the final settlement may differ from current estimates.

Legal Proceedings

From time to time, we are involved in litigation, disputes and other legal proceedings arising in the normal course of our business. We insure against the risks arising from these legal proceedings to the extent deemed prudent by our management and to the extent insurance is available, but no assurance can be given that the nature and amount of that insurance will be sufficient to fully indemnify us against liabilities arising out of pending and future legal proceedings. Many of these insurance policies contain deductibles or self-insured retentions in amounts we deem prudent and for which we are responsible for payment. If there is a claim, dispute or pending litigation in which we believe a negative outcome is probable and a loss by the Company can be reasonably estimated, we record a liability for the expected loss. As of 30 June 2026, we are not aware of any such expected loss which would be material to our financial position and results of operations, nor are we involved in any litigation or arbitration proceedings which may have a significant effect on our financial position or profitability.

‌Note 18 Investment in Associates and Joint Ventures‌

We have the following participation in investments that are recorded using the equity method:

	30 June	31 Dec.
	2026	2025
DSolve AS	20%	20%
Exacte AS	22%	-
Archer Elemental UK	60%	60%
Archer Elemental Norway AS	60%	60%
The carrying amounts of our investments in our equity method investment are as follows:
(In USD millions)		Total
Book value at 31 December 2025		4.0
Share of profit after tax		(0.4)
Investment in Exacte AS		1.0
Translation adjustment		0.1
Book value at 30 June 2026		4.7
Exacte AS

During the second quarter of 2026, Archer Norge AS acquired 22% of the shares in Exacte AS ("Exacte"), an unrelated technology company based in Norway. Archer has collaborated with Exacte over several years in the development of software and technology solutions related to the maintenance and optimization of drilling equipment. Prior to the investment, Archer provided funding and support to Exacte's development activities. Archer's participation in the future value creation of the technology is through its equity ownership in Exacte.

DSolve

During 2025, we paid $2.15 million to acquire 20% of a 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 thee 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 $1.5 million.

Archer Elemental UK Limited and 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 companies shall be on a pro-rata basis based on the respective shareholding. As Archer does not control the entity, the investment is accounted for using the equity method.

‌Note 19 Related Parties‌

The Group had the following material transactions with related parties:

Related Party transactions

(In USD millions) Relation Six Months Ended 30 June Year Ended Dec. 31

		2026	2025	2025
dSolve AS Associated Revenue Company		0.1	-	0.2
dSolve AS Associated Other Company operating expenses		0.2	-	-
Archer Elemental UK Associated Revenue Company		0.1	-	0.3
Archer Elemental UK Associated Other Company operating expenses		0.1	-	0.3
Seatankers Management Related to Other Company Limited main operating ("Seatankers") shareholder expenses		0.0	-	0.6
Related Party Balances
(In USD millions) Relation			30 June 2026	31 Dec. 2025
dSolve AS Associated Company	Trade receivables		0.5	0.2
Archer Elemental UK Associated Company	Trade receivables		0.2	0.3
Archer Elemental Norway AS Associated Company	Trade payables		0.5	1.6
Seatankers Management Company Related to main Limited ("Seatankers") shareholder	Trade payables		0.0	0.6
‌Note 20 Subsequent Events‌

On 7 July 2026, Archer entered into a large contract related to plug and abandonment (P&A) activities in the UK North Sea for Well-Safe Solutions on the Beryl and Forties fields operated by Apache North Sea. The decommissioning project comprises seven platforms and more than 260 wells, with Archer providing platform drilling services together with wireline, coiled tubing, fishing and other well services.

On 10 July 2026, Archer was awarded an additional five-year contract, with two one-year extension options, from YPF for a super-spec drilling rig in Vaca Muerta. The contract has an estimated value of approximately USD 90 million over the firm contract period and further expands Archer's super-spec drilling fleet in Argentina.

On 10 July 2026, Archer Norge AS received the proceeds from a USD 30 million tap issue under its outstanding senior secured bond due 2030, which had been priced on 26 June 2026 at 106.25% of par value. The tap issue increased the total outstanding amount under the bond to USD 447.5 million. The net proceeds will be used for general corporate purposes.

On 3 August 2026, Lars Pedersen was appointed as a director of Archer Limited.

‌Appendix to Second Quarter and Half Year 2026 Report‌

Archer prepares its consolidated financial statements in accordance with IFRS® Accounting Standards as adopted by the EU. In addition to these measures, management uses certain non-GAAP performance metrics that it believes provide stakeholders with supplemental insight into the company's operational performance and enhance comparability between periods.

One such non-GAAP measure is Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization, adjusted for items identified by management as special charges or non-recurring in nature. Adjusted EBITDA is not a defined measure under IFRS and should therefore not be viewed as a substitute for measures such as operating income, net income, or other IFRS-based financial information.

The following table presents supplemental financial data and a reconciliation of Adjusted EBITDA to the most directly comparable IFRS measures for the three months ended 30 June 2026, 31 March 2026, 31 December 2025; 30 September 2025; 30 June 2025. Non-GAAP financial measures should be considered in addition to, and not as an alternative to, the company's reported results prepared in accordance with IFRS.

Condensed Consolidated Income Statement

(In USD million) Three Months Ended
	Jun. 30,	Mar. 31,	Dec. 31,	Sep. 30,	Jun. 30,
	2026	2026	2025	2025	2025
Revenue	262.6	278.4	301.4	299.7	296.7
Cost and expenses
Operational costs	(239.2)	(261.4)	(280.2)	(276.1)	(272.7)
(Gain)/loss on sale of assets	(0.2)	-	(0.7)	0.1	-
Impairments	-	-	(33.1)	-	-
Net financial items	(16.4)	(12.1)	(15.0)	(15.8)	(12.0)
Loss on sale of business	-	(1.0)	-	-	(8.7)
Gain on bargain purchase	-	-	-	-	-
Profit (loss) before income taxes	7.3	3.9	(26.9)	7.9	3.3
Income tax (expense)/benefit	(7.1)	(0.3)	(7.9)	(0.9)	(1.3)
Profit (loss)	0.2	3.6	(34.8)	7.0	2.0
Reconciliation of GAAP to non-GAAP Measures (Unaudited)
(In USD million) Three Months Ended
	Jun. 30,	Mar. 31,	Dec. 31,	Sep. 30,	Jun. 30,
	2026	2026	2025	2025	2025
Profit (loss)	0.2	3.6	(34.8)	7.0	2.0
Depreciation, amortization and impairments	21.5	20.1	56.1	19.1	17.7
Net financial items	16.4	12.1	15.0	15.8	12.0
Income tax expense (benefit)	7.1	0.3	7.9	0.9	1.3
(Gain)/loss on sale of assets	(0.2)	-	(0.7)	(0.1)	-
Loss on sale of business	-	1.0	-	-	8.7
EBITDA	44.9	37.2	43.5	42.8	41.7
Exceptional charges	2.7	3.9	6.7	1.7	3.7
EBITDA before exceptional items	47.6	41.1	50.2	44.5	45.4
Revenue by reporting segments

(In USD million) Three Months Ended

	Jun. 30, 2026	Mar. 31, 2026	Dec. 31, 2025	Sep. 30, 2025	Jun. 30, 2025
Platform Operations	96.2	107.1	114.0	133.2	117.8
Renewables	25.3	39.8	35.9	31.1	34.3
Well Services	88.9	83.0	88.0	72.6	71.4
Land Drilling	52.1	48.4	63.5	62.6	73.2
Revenue	262.6	278.4	301.4	299.7	296.7
EBITDA by reporting segments
(In USD million)		Three Months Ended
	Jun. 30,	Mar. 31,	Dec. 31,	Sep. 30,	Jun. 30,
	2026	2026	2025	2025	2025
Platform Operations	12.0	14.2	14.2	18.2	19.6
Renewables	1.5	0.9	3.9	4.6	3.0
Well Services	19.9	16.2	19.5	17.0	17.3
Land Drilling	13.0	8.8	9.9	5.5	3.9
Overhead & Corporate	(1.5)	(2.9)	(4.0)	(2.5)	(2.2)
EBITDA	44.9	37.2	43.5	42.8	41.7

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