Archer Limited: Earnings growth and strong cash flow generation

25 Nov 2022 07:00 CET

Hamilton, Bermuda (November 25, 2022)

Third Quarter 2022 Highlights

· Revenue of $240 million
· EBITDA before exceptional items of $23.7 million
· Strong cashflow reducing NIBD by $21 million
· Awarded new Equinor scope valued at $200 million
· Awarded a five-year platform drilling contract extension valued at $50
million
· Acquired 50% of renewable energy service company Iceland Drilling (closed
November 16th)

Dag Skindlo, CEO of Archer, comments:

"We are pleased to have delivered a strong quarter, increasing our underlying
quarterly EBITDA by 13%.  Absent the unfavorable development of NOK and GBP in
the quarter, our underlying EBITDA is estimated to have increased by 18%.  The
improvement is largely driven by a record quarter for our Well Services division
with a third quarter EBITDA-contribution of $11.5 million.

Operating cashflow was very strong in the quarter, and we reduced our net
interest-bearing debt by $21 million compared to Q2.

With the investment in international geothermal drilling and well service
company Iceland Drilling, which closed on November 16th, Archer is entering a
new chapter in our sustainability strategy. Geothermal energy is a renewable
energy source that offers a stable base load and has direct overlap and
synergies with Archer's core services.

We reconfirm our guidance for the year, despite the weakening in European
currencies.  Looking beyond 2022, we remain optimistic as to the market activity
and fundamentals for Archer. We believe demand recovery and the focus on energy
security and diversification will have positive implications for energy
investment over the next few years.  Based on our backlog, our clients' activity
plans, and a supportive macro environment we see 2023 EBITDA 15-20% above 2022
levels and a continued strengthening outlook thereafter."

For additional information please contact:

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

Q3 Presentation

In connection with the earnings release, a presentation will be held at 9:00 am
CET on November 25, 2022.

To follow the presentation, the following options are available:

A. Webcast

To register for the webcast please go to
https://streams.eventcdn.net/archer/2022q3/ (https://eur05.safelinks.protection.
o
utlook.com/?url=https%3A%2F%2Fstreams.eventcdn.net%2Farcher%2F2022q3%2F&data=05%
7
C01%7Cjoachim.houeland%40archerwell.com%7C464b598581db421a7f3e08dabe4b63af%7C7e0
9
344361d34f25b10bb8e038ac2798%7C0%7C0%7C638031528252906668%7CUnknown%7CTWFpbGZsb3
d
8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C
%
7C&sdata=4%2Fxy8TjUEYTyXeQeRA%2BzEfahR%2BRspkDamY6x9EwmF3Q%3D&reserved=0)

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 third quarter 2022 earnings
release call"

Participants dial-in:

Norway: 81 503 308

United Kingdom: 020 3936 2999

United States: +1 646 664 1960

All other locations: +44 20 3936 2999

Participant Access code:  262965

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.

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

More information:
Access the news on Oslo Bors NewsWeb site

576703_Archer_Q3_2022_Presentation.pdf
576703_Archer_Q3_2022_Report.pdf