Archer Limited · OSL:ARCH
Archer — Q2 2022 Earnings Presentation
22 slides from Archer's earnings presentation, Aug 12, 2022
Slide 1: Archer Q2 2022 Results
Archer Q2 2022 Results Dag Skindlo - CEO Espen Joranger - CFO 12 August 2022
Slide 2: Disclaimer - forward looking statements
N Disclaimer - forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends that are “
Slide 3: Archer at a glance
A Q2 2022 Archer at a glance Archer A global energy services company with a deep heritage in delivering wells and improving well performance Operational divisions Land drilling Platform drilling Well services $936m 2021 Revenue 50 years Operating experience 4500+ Global Personnel 40 Operating Locati
Slide 4: Q2 Highlights
a Revenue ($m) Adjusted EBITDA ($m) — Q2 2022 Q2 Highlights * Revenue of $247 million * EBITDA before exceptional items of $20.9 million * Available liquidity $97 million Subsequent events Net interest-bearing debt ($m) — ¢ Agreed to acquire 50% of Iceland Drilling Company Ltd. for $8.25 million ¢ A
Slide 5: Archer acquires 50% stake in Iceland Drilling
A (22 2022 DD Archer acquires 50% stake in Iceland Drilling nner en Iceland Drilling Financial summary Drillinghistory Investment secures Archer green business through its geothermal * Globalleading geothermal drilling and services company + Acquire 50% stake ownership for an investment of $8.25m +
Slide 6: Strong market sentiment within geothermal energy
A Q2 2022 Wells to be drilled by temperature group Strong market sentiment within geothermal energy by) takeaways geothermal energy 400 a Renewable energy source 30 * Stable base load, suitable compliment to wind and sun i | LI ¢ Substantial potential to replace fossil energy :. a | a Z i sources *
Slide 7: Contract backlog by rig and field operator
Rig / Field Operator 2022 2023 2024 2025 2026 High spec drilling rig #1 PAE • Drilling rig High spec drilling rig #2 PAE YPF High spec drilling rig #3 PAE High spec drilling rig #4 YPF High spec drilling rig #5 YPF Land Drilling High spec drilling rig #6 YPF High spec drilling rig #7 YPF • High spec
Slide 8: Archer setting world record with longest well intervention
A Q2 2022 Archer setting world record with longest well intervention ¢ Archer performing well intervention at 12,375 meters utilizing our ComTrac® system ¢ Production logging was performed for major Middle East client ¢ The record is a significant step for intervention accessibility and Comtrac® wil
Slide 9: Well services contracts and growth
• • • • • Peregrino A/B • Marolo&Ubaia • Cut and pull and • Mechanical services contract Equinor Explo (Oiltools) plugs (Oiltools) for Welltec/Petrobras +29%Drilling) (Platform • Total (Oiltools) +20% (Wireline) • Plug contract (Oiltools) 2009 2022 9
Slide 10: Operational revenue, reimbursable revenue, adjusted EBITDA
• • • Operational revenue Reimbursable revenue Adjusted EBITDA 10
Slide 11: Operational revenue, reimbursable revenue, adjusted EBITDA
• • • Operational revenue Reimbursable revenue Adjusted EBITDA 11
Slide 12: Land drilling
Land drilling Financials Current backlog ($m) + Revenue increased by $9 million compared to previous quarter Wy; + Adjusted EBITDA of $4.6 million Firm - secut 2 BFinr * Exceptional items in the quarter of $1.2 million i — 122 23 24 \2e 26, Operations Revenues ($m) EBITDA ($m) Number of active Arche
Slide 13: Market drivers support growth in Vaca Muerta
Market drivers support growth in Vaca Muerta Argentina Rig Demand For ploration m= Greer*ele ube 04.2022 Vaca Muerta oil production by month Vaca Muerta outlook a recorded further Ig in the prolific Vaca Mut Juction growth records, as ¢ shale formation in Neu * Activity is at an alHtime high * Suppl
Slide 14: Condensed profit & loss
A Q2 2022 Condensed profit & loss * Total revenue of $246.6 million represent an increase of $18.7 million YOY * EBITDA before exceptional items of $20.9 million is a reduction of $1.4 million or 7% compared to Q2 2021 * Exceptional charges in Q2, 2022 of $1.4 million, mainly related to severance pa
Slide 15: Condensed balance sheet
A Q2 2022 $ million 30.06.2022 Cash and cash equivalents Restricted cash Accounts receivables Inventories Other current assets Investments and loans to associates Property, plant and equipment Right of use assets Goodwill Other non-current assets Total-assets Current portion of interest-bearing debt
Slide 16: Energy market outlook (Rystad Energy)
$bn $bn • 800 • 1,200 1,100 700 1,000 600 900 800 500 700 • 400 600 500 300 400 200 300 • 200 100 100 16 18 20 22E 24E 26E 28E 30E 16 18 20 22E 24E 26E 28E 30E $bn 200 • • 150 • Non-renewable Renewable 100 Rig work years 11% 15 23% • 50 10 5 . 77% 89% 16 18 20 22E 24E 26E 28E 30E 22E 23E 24E 25E 26E
Slide 17: Reconfirms 2022 guidance and estimate significant 2023 EBITDA growth
Reconfirms 2022 guidance and estimate significant 2023 EBITDA growth • Revenue for 2022 expected to increase moderately from 2021 • EBITDA for second half 2022 expected to increase by 35-40% compared to first half 2022 • Capex 2022 approximately 3% of revenue • Positive free cash flow and reduction
Slide 18: Appendix
Appendix 18
Slide 19: Segment key financials
Appendix Segment key financials Eastern Revanines(Em) EBITDA before exceptionals Hemisphere 250 2 200 | 1780 187.6 Gel) tent 1795 150 ap Platform drilling & 100 15 Engineering =) o} + 10 Q2-21 Q3-21 Q4-21 122 Q2-22 $m azz Q321 aaa 122 Q222 Revenues 1780 1876 193916111795 EBITDA before exceptional it
Slide 20: Quarterly financials
(Figures in $ million) Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 20 20
Slide 21: Condensed balance sheet
A Appendix Condensed balance sheet Cash, cash equivalents & restricted cash 46.6 36.6 655 1043 99.1 Accounts receivables 123.6 125.0 125.6 124.7 135.0 Inventories 54.7 53.4 52.1 52.7 52.9 Other current assets 263 32.6 30.7 34.9 363 Investments and loans in associates 121 73) 63 8.0 68 Property, plan
Slide 22: Condensed cash flow statement - last quarters
A Appendix Condensed cash flow statement - last 5 quarters sing ion) Q221 Q321 Q421 Q122) = Q222 Operating activities 15.3 15 40.0 (8.7) 16.8 Investing activities (16.0) (9.0) (14.3) (7.8) (4.8) Financing activities 51 (1.8) 61 52.9 (8.2) FX effect (0.2) (0.9) 0.0 24 (8.9) Total* 42 (10.2) 31.8 38.9