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financials and confirms the quarterly cash distribution to shareholders.
Archerâs CEO, Mr. Skindlo, comments:
âOur growth the last few years in combination with the refinancing of Archer in
February 2025, have given us the foundation to introduce our first shareholder
return program. We are pleased to confirm the first quarterly cash distribution
to our shareholders. We will pay the first cash distribution of NOK 0.63 per
share on or about May 28, 2025.â
In the first quarter, Archer continued to deliver solid growth with revenue of
$342.5 million and EBITDA of $33.5 million, representing a YOY-growth of 11% and
9% respectively, highlighting Archerâs continued ability to grow revenue while
improving margins in a more challenging market.
As a result of our focus to expand our P&A service offering, we were awarded a
major long-term agreement for late life and P&A services on seven platforms for
Repsol in the UK. Furthermore, we continue to build new solutions and services
for P&A of subsea wells and were awarded a millstone contract for subsea P&A
work in Norway by Equinor. We have secured contracts with an estimated value of
more than $550 million since year-end. These long-term contracts will support
our growth into 2026 and onwards.
Archerâs main business is within brownfield operations and P&A of wells. As the
industry navigates the uncertainty of the recent US policies on trade and weaker
commodity prices, our business exposure and operations are expected to provide a
comparatively more stable and resilient foundation for financial results.
Highlights from the Q1 financials:
¡ Q1 Revenue of $342.5 million; up 11% YOY
¡ Q1 EBITDA of $33.5 million, up 9% YOY
¡ Announced shareholder return program with a quarterly cash distribution of
$5.5 million in Q2 2025
¡ Awarded 7-year frame agreement with Equinor for subsea P&A with initial
scope for 27 subsea wells on Snorre and Heidrun
¡ WFR awarded multi-year contract to supply fishing and thru-tubing fishing
for major deepwater operator in the US
¡ Successful placement of 5-year USD 425 million senior secured bond to
refinance existing debt
Subsequent events
¡ Awarded a strategic partnership agreement to support late-life operations
and plug and abandonment activities on Repsolâs extensive platform portfolio in
UK.
¡ Renewed contracts for 9 pulling units and 8 workover units working for Pan
American Energy (âPAEâ) in the south of Argentina. PAE also reduced activity for
3 drilling rigs, 3 pulling units and 3 workover units in the south of Argentina.
We continuously develop and expand our services and technologies within the
growing P&A service market. During the first quarter, we invested in a
technology company developing electrochemical steel removal technology for
rigless P&A, primarily in the subsea domain. This technology has the potential
to radically change the method and cost for subsea P&A, positioning Archer as a
lead technology company within this growing market.
Archer announced reduced activity for Land Drilling in the south of Argentina in
April 2025. The reduction in activity will impact annualized global revenue by
around 5%, but the reduction will have limited impact on the annual cash flow
for the group, as we reduce overhead cost, working capital, and maintenance
investment in the south of Argentina.
Archer reiterates the financial guidance for 2025, with only minor adjustment to
revenue and capex guidance. With continued growth in 2025, revenue is expected
to increase by low single digits, EBITDA to increase by 15-25% and capex to be
around 4% of revenue.
For further information, please contact:
Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email:
espen.joranger@archerwell.com
Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78
748, Email: joachim.houeland@archerwell.com
This information is subject to the disclosure requirements according to Section
5-12 of the Norwegian Securities Trading Act.
Kilde
