Archer Limited : First Quarter 2018 Earnings Release
Hamilton, Bermuda (May 8, 2018)
First quarter highlights 2018
- Revenue of $218 million.
- EBITDA of $18.1 million before exceptional items.
- Statoil awarded Archer 12 of the 18 drilling platforms tendered, with a firm contract value of more than NOK 6 billion.
- IPO of QES on the New York Stock exchange.
- Activity picking up in selected regions, with both Wireline and Oiltools experiencing increased activity.
- AWC continues to grow, and is currently experiencing robust new valve demand.
- Strong financial performance in the north of Argentina, and two rigs now in operation in Bolivia.
- Financial results in south of Argentina impacted by additional redundancy expenses and costs of idle personnel.
John Lechner, CEO Archer comments:
"The award of four additional Statoil operated platforms, in addition to the nine we already hold, cements our position as the leading platform drilling operator in Northern Europe. The additional four platforms awarded are all currently in active drilling mode, and will thus contribute materially to our platform drilling revenue going forward.
Archer's revenue in the first quarter amounted to $218.3 million, up $16.7 million or 8.2% from same quarter last year. Furthermore, we are experiencing increased activity levels within several of our business units, especially in Norway and onshore US. Over the year, this should translate into improved financial performance relative to the first quarter.
In Latin America, land drilling in the north of Argentina continues to deliver strong operational and financial performance, while fluids and land drilling in the south impacts overall performance negatively. We are currently addressing this on several fronts, including rightsizing the organization and implementing best practices. We are also in talks with our main customer to ensure that improved performance translates to more profitable operations. We believe the combined efforts will result in improvement both on the top and bottom line in the second half of 2018."
A conference call will be held at 08:00 London time, 09:00 Oslo time on May 8, 2018. To listen to the conference call, the following options are available:
To register for the webcast please go to https://edge.media-server.com/m6/p/qf2j3gcn
B. Conference call
To access the call, which is open to the public, please contact the conference call operator at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time, and ask for the "Archer 1st quarter 2018 Earnings release".
Participant Telephone Numbers:
|UK:||+44 (0)330 336 9105|
|Norway:||+47 2100 2610|
| Confirmation Code: ||8259379|
The operator will ask for your name, company and the confirmation code. Following the presentation there will be a Q&A session. Information on "how to ask questions" will be given at the beginning of the Q&A session.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.