London, 16 August, 2023, (Oilandgaspress) – Archer Limited announce revenue of $295 million; up 20% YOY
Second Quarter 2023 Highlights
Adjusted EBITDA of $31.9 million; up 52% YOY
EBITDA of $30.0 million; up 54% YOY
EBIT-margin of 6.3%, totaling $18.7 million
On track to meet upper range of our financial guidance for 2023
Secured a five-year ~$50 million coiled tubing and pumping contract in the UK
Subsequent events
Awarded a $165 million contract for permanent plug and abandonment (P&A) of 32 wells in UK
Awarded a 5-year contract for P&A, Fishing, Cleaning and Rental Services in Norway with a total scope of $15-20 million
On the solid performance in the second quarter, Dag Skindlo, CEO of Archer, comments:
“I am pleased to report record level EBITDA for the quarter driven by growth in our well services division and improvements in land drilling. An EBITDA growth of more than 50% from same quarter last year clearly demonstrate our ability to grow. I want to thank all our employees for their relentless focus on HSE and extraordinary efforts to solve our clients’ challenges.
We have successfully integrated Romar-Abrado and Baker Hughes UK coil tubing business in the UK into our Well Services division. We will see further financial benefits of the acquisitions from the third quarter onwards.
As a testimony to our focus on P&A and decommissioning, we are proud of the award by Repsol Sinopec of an estimated $165 million contract to Archer as announced yesterday. The scope of work includes plug and abandonment of 30 Wells in the Fulmar Field and two wells in the Halley Field. This contract will support our growth, both in revenue and EBITDA, from late 2024 through 2028. The contract includes our modular P&A rig Emerald, well services and well engineering. We are tendering similar P&A projects and believe this large market will support further growth of the company. The permanent plugging and abandonment of oil and gas wells is an essential activity to curb global emissions. Our goal is to industrialize the P&A process and spearhead innovation to cut operators’ P&A costs globally.
We continue to deliver on our strategy, with both organic expansion and judicious and accretive bolt on acquisitions, which together will drive our business growth, in terms of turnover, profitability and shareholder value. As such, we are on track to meet upper range of our financial guidance for 2023, which implies an EBITDA growth of 30% to 35%. Furthermore, we will continue to explore attractive M&A opportunities for consolidation and value creation in line with our strategy. “
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