Archer Limited : Third Quarter 2017 Trading Update
Hamilton, Bermuda (October 31, 2017)
Third quarter highlights 2017
- Revenue $212.3 million
- EBITDA of $17.8 million before exceptional items
- Contract awards and renewals during Q3 17 improved order backlog by roughly $100 million
- P&A contract for Platform Drilling for Repsol Norway
- Renewed contract for Platform Drilling for Chevron UK
- Oiltools and Wireline won frame agreement with Repsol Norway to deliver P&A and related services
- Slight setback in US Onshore due to Hurricane Harvey, but overall trend remains positive
- First two leased Flex rigs on contract with Pan American Energy mobilized on schedule
John Lechner, CEO Archer comments:
"Archer's financial performance improved from the second quarter with both higher revenue and improved margin.
Our strong operational and HSE performance led to continued contract awards and renewals, cementing our position as the leader within platform drilling in the North Sea. Our frame agreement for P&A services with Repsol further showcased our position as a provider of integrated P&A services on the Norwegian Continental Shelf.
Our land drilling business in Argentina increased activity in the quarter on the back of the recent contract award with Pan American Energy. We managed to deploy two of our four leased Flex rigs as planned, and we are committed to work hard to achieve incentive bonuses from efficient drilling operations. However, the operating environment remains challenging and the activity in the region may fluctuate quarter to quarter, as the demand for drilling, pulling and workover rigs changes. On the positive side, we have been awarded a contract for one of our idle rigs in Bolivia, scheduled to mobilize towards the end of the year.
We lost slight momentum in the US during the quarter as a result of Hurricane Harvey, but we have now recovered and are confident of continued growth going forward.
The outlook for oilfield services remains uncertain, but Archer is benefiting from exposure to differing geographies and early cycle segments. A stable oil price at current levels will support activity growth into 2018. We remain committed to de-leveraging and strengthening our balance sheet through strict capital discipline and focus on efficient operations."
In connection with the trading update release, a conference call will be held at 14:00 Oslo time (8:00 Houston time/ 13:00 London time) on Tuesday October 31, 2017.
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/quih4rhp
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 Third Quarter 2017 Trading Update Conference Call."
Participant Telephone Numbers:
|Local - Oslo, Norway:||+47 2316 2787|
|Local - New York, United States of America:||+1 646 254 3365|
|Local - London, United Kingdom:||+44 (0)20 7136 2051|
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.