Archer Limited · OSL:ARCH
Archer — Q3 2018 Earnings Presentation
17 slides from Archer's earnings presentation, Nov 2, 2018
Slide 1: Archer Third Quarter 2018
Archer Third Quarter 2018 John Lechner CEO Dag Skindlo CFO 2 November 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 – Third quarter highlights 2018
Archer – Third quarter highlights 2018 • Best quarterly operating result in 3 years. • Revenue of $213.7 million. • EBITDA before exceptional items of $25.7 million, an increase of 45% from same quarter last year. • EBITDA of $22.4 million, an increase of 75% from same quarter last year. • EBIT of $
Slide 4: Platform Drilling & Engineering
Platform Drilling & Engineering Continued strong operating performance Revenue and EBITDA1) [$m and %] Platform Drilling Revenues ($m) EBITDA pre exceptional items (%) • Slight decline in revenue mainly due to unfavorable 120 12% 97.4 96.0 101.4 99.7 foreign exchange effects. 100 88.7 10% 80 8% • St
Slide 5: Well Services
Well Services Provides high-end well integrity technologies and services Revenue and EBITDA1) [$m and %] Oiltools Revenues ($m) EBITDA pre exceptional items (%) • Revenue up 12% relative to corresponding 30 26.9 26.5 20% 25 23.5 22.0 24.7 quarter last year. 15% 20 • Increased tender activity globall
Slide 6: Land Drilling
Land Drilling Significant margin growth driven by strong performance Revenue and EBITDA [$m and %] • All geographies and segments in Land Drilling Revenues ($m) EBITDA pre exceptional items (%) reported positive EBITDA in the quarter on the 120 97.6 20% back of strong operational performance and 100
Slide 7: US Onshore: AWC Frac Valves divested on 31 August 2018
US Onshore AWC Frac Valves divested on 31 August 2018 Revenue and EBITDA [$m and %] • AWC Frac valves reported $8.2 million in Revenues ($m) EBITDA pre exceptional items (%) revenue and $1.1 million in EBITDA before being 12 9.9 15% divested on 31 August 2018. 10 8.4 8.2 8 6.9 6.8 10% • Archer dives
Slide 8: Archer Group – financial highlights third quarter 2018
Archer Group – financial highlights third quarter 2018 Revenue [$m] EBITDA before exceptional items [$m] 250 30 224 218 224 212 214 25.7 25 200 20 17.8 18.1 18.0 150 16.5 15 100 10 50 5 0 0 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Capex [$m] Net Interest Bearing Debt [$m] 10 700 6
Slide 9: Significant margin expansion in Q3 2018 relative to 3-year average
Significant margin expansion in Q3 2018 relative to average for the last 3 years EBITDA pre exp. Items [$m,%] EBITDA [$m,%] EBIT [$m,%] 30 18% 30 18% 10 10% 8.6 25.7 16% 16% 8 8% 25 25 6 6% 14% 22.4 14% 4.0% 20.5 12.0 % 4 4% 20 12% 20 12% 10.5 % 2 2% 10% 10% 14.8 15 15 0 0% 8.9 % 8% 8% Average Q3-15
Slide 10: Condensed profit and loss statement
Condensed profit and loss statement • Third quarter revenue of $213.7 million was $10.6 million YTD YTD (Figures in $ million) Q2 18 Q3 18 below second quarter 2018: 2017 2018 Operating revenues 204.0 192.9 585.7 598.5 • Land Drilling revenue fell by 8% as unfavorable foreign exchange Reimbursable r
Slide 11: Condensed balance sheet
Condensed balance sheet (Figures in $ million) 30/09/17 30/06/18 30/09/18 Assets ASSETS • Total assets for the third quarter decreased compared to the Cash, cash equivalents & restricted cash 50.9 33.2 27.3 previous quarter, predominantly a result of the divestment of Accounts receivables 153.9 140.
Slide 12: We are delivering on our 2018 outlook previously stated
We are delivering on our 2018 outlook previously stated 2018 outlook - what we stated in previous quarters Status All business units in the Eastern Hemisphere experiencing increased 1 demand with combined expected revenue growth of 15% over 2017. Still applies Average EBITDA margin before restructur
Slide 13: Appendices
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Slide 14: Segment key financials
Segment key financials Eastern Revenues ($m) EBITDA pre exceptional items (%) Hemisphere 150 128.3 10.5 % 119.4 120.8 126.2 112.2 10.0 % 100 9.5 % Platform 9.0 % drilling & 50 8.5 % Engineering 8.0 % 0 7.5 % Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Well $m Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Services Revenues 112.2
Slide 15: Condensed profit and loss statement – last 5 quarters
Condensed profit and loss statement – last 5 quarters (Figures in $ million) Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 YTD 2017 YTD 2018 Operating revenues 199.9 204.0 201.6 204.0 192.9 585.7 598.5 Reimbursable revenue 12.4 19.7 16.7 20.4 20.8 37.4 58.0 Total Revenues 212.3 223.7 218.3 224.4 213.7 623.1 656.5 E
Slide 16: Condensed balance sheet – last 5 quarters
Condensed balance sheet – last 5 quarters (Figures in $ million) 30/09/17 31/12/17 31/03/18 30/06/18 30/09/18 ASSETS Cash, cash equivalents & restricted cash 50.9 67.7 50.8 33.2 27.3 Accounts receivables 153.9 140.4 145.6 140.0 124.4 Inventories 56.0 58.0 58.9 57.7 51.8 Other current assets 41.9 35.
Slide 17: Condensed cash flow statement – last 5 quarters
Condensed cash flow statement – last 5 quarters (Figures in $ million) Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 YTD 2017 YTD 2018 Operating activities (15.9) 32.4 (2.6) 4.9 (1.5) (19.0) 0.8 Investing activities 3.1 (8.9) (10.5) (10.6) 30.1 (10.9) 9.0 Financing activities (28.4) (7.6) 0.8 (11.4) (30.3) 30.9 (40