Archer Limited: Strong fourth quarter and increased 2023 guidance

Hamilton, Bermuda (February 28, 2023)

Fourth Quarter 2022 Highlights

• Revenue of $264 million, up 10% from last quarter
• EBITDA before exceptional items of $29.2 million, up 23% from last quarter
• Positive net results for Q4 of $16.4 million and full year 2022 of $9.8 million
• Finalized the 50% investment in Iceland Drilling

Subsequent events

• Acquired P&A specialist Romar-Abrado
• Announced the acquisition of Baker Hughes’ coil tubing and pumping business in UK
• Raises EBITDA guidance for 2023 to 25%-35% above 2022

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

“I am pleased that we are growing and delivered strong financial results in the last quarter of the year. The growth is driven by solid operational performance and improved market conditions.  We believe the market fundamentals for our services will continue to improve and we are likely to see a multiyear upcycle within oil service industry.

We have strengthened our Well Services division capabilities and product offering through the acquisitions of Romar-Abrado and Baker Hughes coil tubing and pumping business in the UK. Both transactions are accretive to Archer and improves our service offering. These acquisitions, combined with inhouse product development and innovation, have resulted in the broadest and the most advanced P&A tools offering within the industry. “

Financial outlook

“Going into 2023, we have a backlog of $2.3 billion with additional $2.2 billion in contracted options. We see improvements in our Well Services division and are expecting to see a 65-75% growth in EBITDA for 2023. We predict that this segment will account for more than 40% of our total EBITDA this year. We expect a moderate growth in our Platform Operations division in 2023 over 2022.  The expectation for our Land Drilling division is to grow EBITDA by 25-40% in 2023.  We have improved backlog and contract coverage for our rigs entering into 2023 compared to 2022.  Overall, Archer’s EBITDA for 2023 is expected to be 25-35% higher than 2022

We are exploring alternatives for our debt, and we believe that we will have a solution well ahead of maturity 1st October 2023. “

Archer will host a conference call at 9:00 am CET on February 28, 2023. To follow the presentation, the following options are available:

A. Webcast

To register for the webcast please go to https://events.q4inc.com/attendee/367701463

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 Limited fourth quarter and preliminary 2022 results conference call”                            

Participants dial-in:

NO: +47 81 503 308

UK: +44 20 3936 2999

US: +1 855 979 6654

Access code: 303980

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.]

For additional information please contact:

Dag Skindlo, Chief Executive Officer

Mobile: +47 982 26 624 | Email: dag.skindlo@archerwell.com

Espen Joranger, Chief Financial Officer

Mobile: +47 982 06 812 | Email: espen.joranger@archerwell.com

Joachim Houeland, Manager Treasury & Investor Relations

Mobile: +47 482 78 748 | Email: joachim.houeland@archerwell.com

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