Archer Limited · OSL:ARCH
Archer — Q2 2018 Earnings Presentation
16 slides from Archer's earnings presentation, Aug 14, 2018
Slide 1: Archer Second Quarter 2018
Archer Second Quarter 2018 John Lechner CEO Dag Skindlo CFO 14 August 2018
Slide 2: Disclaimer – forward looking statements
Disclaimer – forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this press release contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “f
Slide 3: Archer – second quarter highlights 2018
Archer – second quarter highlights 2018 • Revenue of $224 million. Revenue [$m] • EBITDA of $18.0 million before exceptional items 1). Platform Drilling, • Revenue and margin increase for all segments 86 Wireline, Engineering Oiltools & Tech in Eastern Hemisphere. 224 115 • Award of four additional
Slide 4: Platform Drilling, Engineering & Wireline
Platform Drilling, Engineering & Wireline Steady increase in revenue and EBITDA margin Revenue and EBITDA1) [$m and %] Platform Drilling Revenues ($m) EBITDA pre exceptional items (%) • Revenue increase a result of: 150 12% 114.5 • Additional active platforms in the quarter. 107.8 107.9 10% 97.4 99.
Slide 5: Oiltools & Technology
Oiltools & Technology We expect the trough to be behind us Revenue and EBITDA [$m and %] Oiltools Revenues ($m) EBITDA pre exceptional items (%) • Activity levels in Norway continue positive trend, 20 30% 15.3 25% with Asia Pacific region following suit. 15 12.9 12.8 13.7 11.5 20% • Clients globally
Slide 6: US Onshore
US Onshore Strong growth in line with increase in onshore rig count Revenue and EBITDA [$m and %] • US onshore rig count at 1028 active rigs at the Revenues ($m) EBITDA pre exceptional items (%) end of Q2 2018, up 12% from corresponding 12 9.9 20% quarter last year. 10 8.4 7.6 15% 8 6.9 6.8 • Q2 201
Slide 7: Land Drilling
Land Drilling Results affected by depreciation of Peso and ongoing improvement project Revenue and EBITDA1) [$m and %] • The Argentine Peso has depreciated 35% Revenues ($m) EBITDA pre exceptional items (%) relative to USD since year end 2017. Average 120 97.6 10% revenues (in USD terms) with client
Slide 8: Archer Group – financial highlights second quarter 2018
Archer Group – financial highlights second quarter 2018 Revenue [$m] EBITDA before exceptional items [$m] 250 20 18.1 224 218 224 17.8 18.0 209 212 18 16.5 15.7 200 16 14 150 12 10 100 8 6 50 4 2 0 0 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Capex [$m] Net Interest Bearing Debt [$m
Slide 9: Condensed profit and loss statement
Condensed profit and loss statement (Figures in $ million) Q1 18 Q2 18 YTD YTD • Second quarter revenue of $224.4 million was $6.1 2017 2018 million ahead of first quarter 2018, and 7% higher than Operating revenues 201.6 204.0 385.8 405.6 the corresponding quarter last year. Reimbursable revenue 16
Slide 10: Condensed balance sheet
Condensed balance sheet (Figures in $ million) 30/06/17 31/03/18 30/06/18 Assets ASSETS • Total assets for the second quarter decreased Cash, cash equivalents & restricted cash 80.9 50.8 33.2 compared to the previous quarter, predominantly Accounts receivables 146.6 145.6 140.0 explained by reductio
Slide 11: Concluding remarks and outlook
Concluding remarks and outlook • All business units in the Eastern Hemisphere experiencing increased demand with combined expected revenue growth of 15% over 2017. • Land Drilling operational activity has increased over 2017, but USD reported revenue has decrease following depreciation of the Argent
Slide 12: Appendices
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Slide 13: Segment key financials
Segment key financials Eastern Revenues ($m) EBITDA pre exceptional items (%) Hemisphere 150 128.3 15.0 % 119.4 120.8 112.7 112.2 100 10.0 % Platform drilling, 50 5.0 % engineering & wireline 0 0.0 % Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Oiltools & $m Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Technology Revenues 112.7
Slide 14: Condensed profit and loss statement – last 5 quarters
Condensed profit and loss statement – last 5 quarters (Figures in $ million) Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 YTD 2017 YTD 2018 Operating revenues 195.3 199.9 204.0 201.6 204.0 385.8 405.6 Reimbursable revenue 13.9 12.4 19.7 16.7 20.4 25.0 37.1 Total Revenues 209.2 212.3 223.7 218.3 224.4 410.8 442.7 E
Slide 15: Condensed balance sheet – last 5 quarters
Condensed balance sheet – last 5 quarters (Figures in $ million) 30/06/17 30/09/17 31/12/17 31/03/18 30/06/18 ASSETS Cash, cash equivalents & restricted cash 80.9 50.9 67.7 50.8 33.2 Accounts receivables 146.6 153.9 140.4 145.6 140.0 Inventories 55.0 56.0 58.0 58.9 57.7 Other current assets 47.5 41.
Slide 16: Condensed cash flow statement – last 5 quarters
Condensed cash flow statement – last 5 quarters (Figures in $ million) Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 YTD 2017 YTD 2018 Operating activities 2.4 (15.9) 32.4 (2.6) 4.9 (3.1) 2.3 Investing activities (10.1) 3.1 (8.9) (10.5) (10.6) (14.0) (21.1) Financing activities (2.3) (28.4) (7.6) 0.8 (11.4) 59.3 (1