Archer Limited: Archer reports a record year with 15% EBITDA growth and guides 2025 EBITDA to grow by 15-25%.

30 Jan 2025 07:30 CET

Hamilton, Bermuda (January 30, 2025)

Drilling and well services provider Archer announces a trading update for 2024
including its financial outlook for 2025.

Archer has grown substantially both organically and through strategic M&A over
the last few years.  Archer reports 2024 EBITDA of $135 million and guides
further growth of 15-25% in 2025, approximately 90% above Archer's 2022 EBITDA
results. The improvements in 2024 were driven by increased activity and a higher
EBITDA margin, now roughly 2 percentage-points above 2022 levels.

Highlights from the Q4 trading update:

· Revenue of $349 million, up 14% year-over-year
· Adjusted EBITDA of $40 million, 21% above the same period last year
· Full year 2024 EBITDA of $135 million, and pro forma full year EBITDA of
$156 million, both in line with Archer's guidance
· Proforma leverage ratio, at a historic low, of 2.3x year-end 2024
· The acquisition of WFR and the subsequent $50 million private placement
continued Archer's growth strategy and strengthened our balance sheet

Archer market and focus area

Roughly 90% of Archer's revenue is within brownfield operations and P&A.
Focusing on mature oil and gas fields producing from existing infrastructure,
Archer is primarily exposed to the lowest cost per barrel markets, where oil and
gas companies are likely to prioritize spending over the next decades. Through
innovation, organic growth, acquisitions, and international expansion, Archer
has developed one of the broadest and most advanced P&A offerings in the
industry. Archer has a clear strategy to capture a large portion of the growing
offshore P&A market globally, estimated at roughly $120 billion before 2050,
through the combination of established presence, well engineering, drilling
services, and well services.

Growth and updated guidance for 2025

CEO Mr. Skindlo, states;

"I'm thankful to our dedicated team, whose expertise and service quality drive
our success, and to our shareholders and partners for their continued trust.
Looking ahead, we are confident that our diversified portfolio, innovative
offerings, and our recent partnerships and acquisitions will drive sustained
value. We remain focused on scaling our business while improving our cash
generation to allow Archer to deliver increased returns for our stakeholders".

As Archer continues to build on its strong performance, we project a robust
outlook for the upcoming years and provide the following financial guidance for
2025:

· Revenue growth between 8-12%
· EBITDA growth between 15-25%
· Disciplined approach to capital expenditures at 3% - 4% of revenue
· Further reduction in our leverage ratio post debt refinance to 2.1x - 2.3x
by year-end 2025

Refinancing and dividend capacity

Archer will separately announce today that the company will engage with fixed
income investors to refinance its existing debt during 2025, building on the
recent significant financial improvements. These improvements, combined with the
equity financing of the recent WFR transaction, have substantially strengthened
the groups credit metrics. Leverage ratio at year-end 2024 stands at 2.6x with a
proforma leverage ratio of 2.3x. The company guides a reduction of its leverage
ratio to around 2.1x-2.3x at year end 2025, creating a clear pathway toward
regular and sustainable shareholder returns starting in 2025.

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.

More information:
Access the news on Oslo Bors NewsWeb site

637382_Archer_Q4_2024_Trading_update.pdf