Archer Limited: Q4 2021 trading update and 2022 financial outlook

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Hamilton, Bermuda (February 2, 2022)

Archer Limited (Archer) will today host a webcast at 09:00 CET where we will share our preliminary financials for Q4 2021 and our outlook for 2022.

Trading update Q4 2021

Based on preliminary unaudited financials, Archer expects to report the following key financials for Q4 2021:

  • Revenue of $248 million, up 17.6% compared to Q4 2020
  • EBITDA of $22.3 million, up 16.6% compared to Q4 2020
  • Net interest-bearing debt reduced by $18 million to $500 million
  • Robust available liquidity of $116 million

On the solid fourth quarter, Dag Skindlo, CEO of Archer, comments:

“Archer had a strong fourth quarter with growth in both revenue and EBITDA.  The improvement is particularly related to our Land Drilling operations in Argentina.  I am pleased that the topline growth and improved operational result were combined with a healthy cash flow generation – reducing net interest-bearing debt by $18 million over the quarter. “

Reflecting on the improvement during 2021, particularly in Archer’s Well Services division, Mr. Skindlo added;

“Archer delivered on the financial commitments we outlined early 2021 and reports an annual growth of roughly 13% in both revenue and EBITDA.  We have strengthened our Well Services division and secured substantial backlog through the award of the Equinor and ConocoPhillips wireline contracts as well as the acquisition of DeepWell.   The topline growth in our Well Services division exceeded 60% compared to 2020, while EBITDA increased by 45%.“

In order to address the continued challenging situation in Argentina, Mr. Skindlo continued; 

“Despite the improvement in Q4 for our Land Drilling operations and the improved outlook following the recent contract award from Pan American Energy, the situation in Argentina remains challenging.  The macro fundamentals in Argentina following their sovereign debt default constraints the country’s ability to further develop their vast oil and gas resources in the short term.  In this context, we have concluded to write down 15 old rigs, pulling units, and workover units that are unlikely to return to operation, and recorded an impairment of $14 million in the quarter.”

On Archer’s commitment to energy transition and emission reduction, Mr. Skindlo states;

“Archer today unveils its roadmap to net zero in 2050, in line with the targets from the Paris agreement.  Archer expects to be carbon neutral within 2022 in all countries with the exception of Argentina and Bolivia.   Hence, our operations in main countries like Norway, UK and US will be carbon neutral this year.

Archer will further develop opportunities related to the energy transition and have identified geothermal drilling and carbon storage as areas where Archer has a competitive advantage to build on.

Archer is committed to reach net zero by 2050.” 

Financial outlook 2022

Platform Drilling will see a moderate slow-down in 2022 as we completed two large P&A projects during 2021, and no more drilling will be required on these two platforms going forward.  

We expect to see improvement in our Well Services division with high activity globally for Oiltools and a full year impact of the Wireline contracts.   

The expectations for our Land Drilling division remain cautious. The recently announced contract extension with Pan American Energy, combined with the positive traction in Argentina’s negotiation with the IMF, provides some confidence that our Land Drilling division will contribute more to Archer’s overall performance in 2022. 

Archer expects improved financial performance in 2022 on the back of a strong backlog and market position:

  • Revenues for 2022 expected to increase moderately from 2021
  • EBITDA for 2022 expected 5-8% higher than 2021, growth primarily in second half of 2022
  • Capex between 3-4% of revenue
  • Positive free cash flow

Archer’s Q4 2021 financial report and preliminary 2021 results are scheduled to be released on February 25, 2022.

Q4 Trading Update and 2022 Outlook presentation

In connection with the trading update, a presentation will be held at 9:00 am CET on February 2, 2022.

To follow the presentation, the following options are available:

A. Webcast

To register for the webcast please go to

B. Conference call

To access the call, which is open to the public, please dial in at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time, and ask for the “Archer Fourth Quarter 2021 Trading Update Call”                           

Participants dial-in:

NO: +47 23 50 02 36

UK: +44 333 300 9271

US: +1 631 913 1422 (US PIN: 38816990#)

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 of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)