Hamilton, Bermuda (July 28, 2017)
Second quarter 2017 highlights
- Revenue $209.2 million.
- EBITDA of $15.7 million, excluding restructuring costs of $2.8 million.
- Net income of $112.9 million, including net financial gain of $121.1 million from the refinancing.
- Secured contract with Pan American Energy for Land Drilling totalling $700 million.
- Secured renewal of three contracts with Shell UK, Marathon UK and Energean Greece for Platform Drilling totalling $100 million.
- High growth in the US with revenue increase of 25% and healthy margins.
- Archer concluded refinancing with reduced debt and sufficient liquidity.
“Second quarter activity trended moderately upward as expected.The exceptional net income in the quarter of around NOK 900 million reflects a one-time gain from the refinancing as well as our ongoing operation. Our two largest divisions were also awarded substantial contracts over the quarter and we have added some $800 million to our contract backlog. The contract with Pan American in the south of Argentina was important for our operations there, and provides a substantial backlog. We had several platform drilling contracts at risk in the quarter, but thanks to our cost efficient and safe operational delivery, we have been able to renew all contracts that have been at stake so far”, says John Lechner, Archer’s Chief Executive Officer. “For our US businesses, we continued to see improvements in the second quarter of 2017 and expect this to continue for the second half of 2017 as long as oil price stabilizes. The increase in US activity has been accompanied by EBITDA margins in the US land market that are satisfactory at this stage of the cycle” says Lechner and continues “Our Oiltools division has yet again shown the ability to leverage their new product portfolio, and our focus on selective investments in new technology is starting to produce results as 30% of the Q2 reported revenue from Oiltools stems from additions to our product portfolio.
Dag Skindlo, Chief Financial Officer and Director added “We are very pleased to finalize our refinancing in the first half of 2017 through agreements with our main lender and our main shareholder. The refinancing has established a robust financial platform for Archer going forward. We have available liquidity of around NOK 1billion, which is more than sufficient for our operations in the current market environment, and enables us to meet both upturns and downturns in the oilfield service market going forward.
In connection with the earnings release, a conference call will be held at 14:00 Oslo time on Friday, July 28, 2017.
For information on how to attend the webcast, detailed information is found on our webpage; http://archerwell.com/investor-relations/webcast/