Archer Limited: First Quarter 2019 Earnings Release and changes to the Board of Directors
Hamilton, Bermuda (May 9, 2019)
First quarter highlights 2019
- Revenue of $225.7 million
- EBITDA of $25.0 million or 11.1% of revenue, an increase of 89% relative to the same period last year.
- EBIT of $11.9 million or 5.3% of revenue, versus a loss in same period last year
- Net Interest Bearing Debt further reduced to $581.3 million.
Kjell-Erik Østdahl, Executive Chairman of Archer comments:
“Archer continues to deliver strong operational and financial results. We see the positive trend from the second half of 2018 continuing with an increase in both our EBITDA and EBIT relative to those quarters.
Client activity is stronger, and we are slowly reaping the rewards of our investments into new technology in Well Services. We achieved an important milestone in March with the first shipment of our Mechanical Packer to an operator in the Middle East. We believe this technology has the potential to be a strong revenue driver in the region in the next couple of years.
With increased E&P spending, we have renewed interest for our two Modular Drilling Rigs and are currently responding to two concrete tenders for work expected to start up in 2020. We are hopeful that our rigs will become active and under contract again during next year.
Lastly, Land Drilling continued its improved operating performance in the first quarter, delivering strong financial results with a right sized organization.”
Changes to Board composition
In order to align better with the Norwegian Code of Practice for Corporate Governance, Dag Skindlo, CFO of Archer, has decided to resign from the Archer Limited Board of Directors. In addition, Kristian Melhuus, who represents Hemen Holding Limited, will join the Archer Limited Board of Directors.
Kristian Melhuus is a Director of Seatankers Management Norway AS. He holds a MSc in Industrial Economics and Technology Management from the Norwegian University of Science and Technology (NTNU) / University of Karlsruhe. His experience includes a previous position as Investment Director in HitecVision and current director positions on the boards of Mowi and Noram Drilling Company.
Webcast and Conference call details
A conference call will be held at 08:00 London time, 09:00 Oslo time on May 9, 2019. To listen to the conference call, the following options are available:
To register for the webcast please go to https://archer.eventcdn.net/201905q1
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 First Quarter 2019 Earnings release."
Participant Telephone Numbers:
|+47 2350 0254
|+44 (0)203 194 0544
The operator will ask for your name and company. 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.