Archer Limited: Third Quarter 2020 Results

Hamilton, Bermuda (November 6, 2020)

Third quarter 2020 highlights

• Revenue of $183.6 million
• EBITDA before exceptional items of $22.3 million
• Awarded contract extensions for a total of 14 installations in the UK
• Agreed amendments to financial covenant
• Net interest bearing debt reduced by $107 million year-over-year

Dag Skindlo, CEO of Archer, comments:

“Despite the reduction in activity in the quarter, Archer continue to generate positive operating cash flow and to reduce its net interest-bearing debt substantially.  The improved liquidity combined with the announced amendments to our loan facility enhances Archer’s financial flexibility going forward.  

The reduced activity-level is predominantly related to our Land Drilling operations in Argentina, where the government-imposed lockdown adversely impacted the quarter.  Towards the end of the quarter we experienced a modest increase in activity in Argentina. With the announced gas subsidy regulation in Argentina to stimulate local gas production, we expect the activity to increase going forward, and Archer is well positioned to benefit from the stimulation package.

Furthermore, we have successfully secured additional backlog in our platform drilling segment, by the two contract extensions awarded for a total of 14 installations on the UK shelf”.

Archer financial outlook for 2020

• Activity to increase in Q4 compared to Q3
• Revenues expected 10-15% lower than in 2019
• Capex expected between 3-4% of revenue
• Net interest bearing debt estimated at $500-515 million end of 2020

For additional information please contact:

Espen Joranger, Chief Financial Officer

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

Joachim Houeland, Corporate Treasurer

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

In connection with the earnings release, a presentation will be held at 9:00 am CET on November 6, 2020. To follow the presentation, the following options are available:

A. Webcast

To register for the webcast please go to https://archer.eventcdn.net/2020q3/register/

B. Conference call

To access the call 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 Third Quarter 2020 Earnings Release”                            

Participants dial-in:

NO: +47 23500243
UK: +44 3333000804
US: +1 8558570686  

Participant pincode: 65771962# 

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.