Slides
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Archer Q2 2025 results Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 14 August 2025
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2 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 “forward-looking.” All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements preceded by, followed by or that include the words “estimate,” pro fo rma numbers, “plan,” project,” “forecast,” “intend,” “expect,” “predict,” “anticipate,” “believe,” “think,” “view,” “seek,” “target,” “goa l” or similar expressions; any projections of earnings, revenues, expenses, synergies, margins or other financial items; any statements of the plans, strate gies and objectives of management for future operations, including integration and any potential restructuring plans; any statements concerning prop osed new products, services, developments or industry rankings; any statements regarding future economic conditions or performance; any statemen ts of belief; and any statements of assumptions underlying any of the foregoing. Financials figures presented for 2025 are unaudited. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. Actual results may differ materially from projected results due to certain risks and uncertainties. Further information about these risks and uncertainties are set forth in our most recent annual report for the year ending December 31, 2024. These forward-looking statements are made only as of the date of this press release. We do not undertake any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from Fourth parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies, which are impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. Disclaimer
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3 Revenue Cash contribution Leverage ratio EBITDA 970 ’22 ’23 ’24 ’25G 1,169 1,301 1,300-1,350 CAGR +11% $m $m 86 117 135 ’22 ’23 ’24 ’25G1 145-155 CAGR +21% $m 56 64 73 ’22 ’23 ’24 ’25G1 90-110CAGR +20% ’22 ’23 ’24 ’25G1,2 5.3x 2.9x 2.6x 2.2x–2.5x EBITDA - Capex Reported NIBD/adj. EBITDA Our products & services Platform Operations Well Services Renewable Services Land Drilling 1 Re-established financial guidance, see details in financial guidance slide. 2 Including planned quarterly cash distributions and adjusted EBITDA guidance
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4 Archer to distribute $5.5 million to shareholders in Q3, equal to ~11% yield Payout per share: NOK 0.62 per share Total distribution: Approx. $5.5 million Payment date: On or around 26th of August Planned frequency: Quarterly ✓ Archer’s announced shareholder return program initiated in Q2 with a distribution of about $5.5million ✓ $5.5million approved for shareholders distribution in Q3 ✓ Target to increase cash distribution to shareholders over time, in line with growth in earnings ~11% Peer 1 Archer Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 ~12% ~10% ~8% ~6% ~4% ~3% ~2% Share buybacks Dividends 1 Per 13.08.25. Yield of peers based on forward annual dividend yield plus share buyback yield, as reported by Morningstar. Sam ple include Odfjell Technology, SLB, Halliburton, Weatherford, H&P, Baker Hughes, Expro. Source: Morningstar Inc. Archer with attractive direct yieldQ3 cash distribution Shareholder program yields in industry1
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5 • Revenue of $348.9 million; up 13% YOY • EBITDA of $38.0 million, up 16% YOY • Adjusted EBITDA of $41.7 million, up 30% YOY • Quarterly cash distribution to shareholder of $5.5 million • Renewed pulling and workover contract with PAE ($210m) • Awarded late-life operations and P&A for Repsol’s in UK ($150m) • Restructuring in Argentina South • Acquired WellConnection, taking drillpipe inspection and repair services in Norway inhouse • Second quarterly cash distribution to shareholders approved, totalling $5.5 million (NOK 0.62/share), implied yield of 11% Q2 Highlights – continued growth Subsequent events Revenue ($m) 265 295 0 50 100 150 200 250 300 350 Q2-24 Q2-25 309 349 +13% Reimbursable Operational revenue 5 0 5 10 15 20 25 30 35 40 Q2-24 Q2-25 32.8 38.0 +16% EBITDA ($m) 0 50 100 150 Q2-24 Q2-25 125.3 142.7 +14% LTM Revenue ($m) LTM EBITDA ($m) 0 200 400 600 800 1 000 1 200 1 400 1 025 Q2-24 1 161 Q2-25 1 225 1 375 +12% Reimbursable Operational revenue
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6 Strong YoY-performance relative to peers2 Archer’s EBITDA remains fairly robust throughout the market cycles 55 73 95 76 85 86 117 135 10% 9% 9% 9% ’17 ’18 ’19 ’20 ’21 ’22 ’23 ’24 ’25G1 145-1551 10% 11% 7% 8% 10% EBITDA Margin -13% -12% +16% +12% EBITDA Q2 (Q2 ’25 vs. Q2 ’24) EBITDA YTD (H1 ‘25 vs. H1 ’24) Robust historical EBITDA Peers Peers Archer Archer 1 Re-established financial guidance, see details in financial guidance slide 2 Average of reported adj. EBITDA by oil service majors: Halliburton, Weatherford, Baker Hughes OFSE segment, SLB and Expro. Source: Public company reports
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Private & Confidential 7 2025 business outlook update – No change to cash distribution capacity Land Drilling: Activity down, but net positive impact on cash flow Archer1: Largely in line with guidance ▪ Outside of Land Drilling, business is largely in line with prior guidance, despite slowdown in the US and delays in the UK ▪ We have increased our investments in lighter P&A units to support growth in 2026 ▪ Visibility increased with long-term P&A projects for both Equinor Norway and Repsol UK ▪ Land Drilling with reduced revenue (by about $100m), reduced EBITDA ($10-12m) and reduced capex ($8-9m), impacting Archer’s 2025 outlook and guidance ▪ However, the net impact on cash flow is positive as the activity reduction is more than offset by reduced maintenance capex, working capital release and sale of excess equipment ▪ Going forward, activity in the south is expected to remain muted, while Vaca Muerta is set to rebound as investments shifts from infrastructure to drilling and completion activity 1 Archer, excluding Land Drilling
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8 Financial guidance for 2025 Key takeaways • No change to cash distribution capacity and policy • Re-establishing our financial guidance for 2025, with adjustment related to reduced activity in Argentina and slightly softer well services market in the US and the UK • Revenue set to increase by low single digits, as underlying growth is offset by reduction in Land Drilling activity • EBITDA ’25E to increase by 8-15% from 2024 • Adjusted EBITDA, reflecting restructuring costs to align cost structure to current activity, in line with previous EBITDA guidance of $155-170 million • Capex to be around 4% of revenue, following growth investments in lighter P&A units, offset by reduction in maintenance capex in Land Drilling • We expect second half of ‘25 to be stronger than first half, due to commencement of projects and seasonal activity • Strong cash flow allowing for debt servicing, deleveraging and continued cash distribution to shareholders • Target to reach a leverage ratio of 1.5 - 2.0x over time ‘25 Financial estimates1 Revenue ($m) Low single digit growth ’24 ’25E 1,301 1,300-1,350 EBITDA ($m) 8 – 15% growth Capital expenditures ~4% of revenue Leverage ratio Between 2.2x and 2.5x by end of ‘25 135 ’24 ’25E 145-155 ’24 ’25E 4.8% ~4% ’24 ’25E2 2.6x 2.2 – 2.5x 1 All numbers estimates assume stable USD/NOK and GBP/USD and are estimated based on the financial guidance for ‘25. 2 Including planned quarterly cash distributions and adjusted financial guidance
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9 Investing in subsea P&A solutions in line with our strategy Technology with potential to significantly reduce the cost of subsea P&A Before After Casing/tubing Innovative technology reducing the need for a rig to execute P&A operations Electrochemical steel removal of tubing and casing Well Casing/tubingWell Positioning to become a leading service provider in the growing subsea P&A segment
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10 Investing in lighter P&A units for global growth Mobilizing for Equinor in Norway in Q3 2025 Committed to start operations with client in the UK in Q2 2026 Committed to start operations in the US in Q2 2026 New Archer P&A units (2025/26) * Total investment per P&A unit $7-10 million
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11 We have strengthened our service offering in Norway Cleaning & Coating Inspection Repair & Maintain Storage & Pipe Handling Integrated “one-stop shop” for inspection, maintenance and repair services for drill pipes and related equipment Recent investment to integrate drillpipe management services in-house
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12 Platform Operations • Total revenue increased by 21% from previous quarter, mainly due to increased reimbursable revenue • EBITDA of $18.5 million reflects an exceptional strong contribution from modular drilling rigs in the quarter Financials Operations • With the acquisition of WellConnection we offer integrated “one-stop shop” services for inspection, maintenance and repair of drill pipes and related equipment • Successfully completed our 3 years P&A campaign for client in the UK with our modular rig 108 123 105 104 119 0 5 10 15 20 25 0 20 40 60 80 100 120 140 160 180 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 140 155 137 131 158 +21% Reimbursable revenue Operational revenue EBITDA (right axis) EBITDA ($m)Revenues ($m) 9 12 11 12 11 0 5 10 15 20 25 30 35 40 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 32 32 30 30 30 Maintenance mode rigs Active drilling rigs Platform Drilling contracted rigs [# of rigs]
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13 Well Services • Revenue of $83.5 million, is 18% higher than Q2 2024, but a moderate reduction from previous quarter due to lower reimbursable revenue • EBITDA of $15.1 million represents a 35% increase compared to same period last year and a 22% increase compared to previous quarter, explained by higher activity in Norway Financials Operations • High activity across service lines in Norway, with slightly softer activity in US and UK • Mobilized our innovative conveyance tool, Comtrac, to perform operations in Norway 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 Q1-22 41 Q2-22 49 Q3-22 45 Q4-22 51 Q1-23 61 Q2-23 63 Q3-23 62 Q4-23 69 60 Q2-24 61 Q3-24 68 Q4-24 Q1-24 Q1-25 68 Q2-25 41 Q2-21 66 43 Q3-21 51 Q4-21 47 62 65 41 59 63 65 69 76 83 52 86 71 80 95 86 83 75 +25% +18% Reimbursable revenue Operational revenue EBITDA Series EBITDA ($m)Revenues ($m)
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14 Land Drilling • Revenue in the quarter of $73.0 million reflects the reduced activity in the south of Argentina • EBITDA of $2.9m reflects the cost of downsizing operations in the south • Adjusted EBITDA of $6.3 million, is down from $8.4 million last year, based on reduction in drilling activity Financials Operations • Overall service activity in Argentina is down by 26% from year-end 2024. We expect drilling activity to be flat throughout 2025 and to increase in 2026 • Completed the down manning of ~550 employees related to reduced drilling activity in the south of Argentina. • PAE renewed contract in the south for 9 pulling units and 8 workover units 0 2 4 6 8 10 12 0 20 40 60 80 100 120 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 97.3 99.2 100.8 102.5 73.0 Operational revenue EBITDA (right axis) EBITDA ($m)Revenues ($m) 12 11 10 9 7 0 5 10 15 20 25 30 35 40 45 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 44 43 43 41 32 Workover & Pulling units Drilling rigs Number of active Archer rigs
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15 Renewable Services • Revenue in the quarter of $33.9 million, up from $22.5 million reported in the previous quarter • EBITDA in the quarter of $3.0 million, up from $2.5 million reported in the previous quarter Financials District Heating Shallow wells for heating and cooling Geothermal Power Deep drilling for power generation Carbon Storage Storage wells for mineralization of COS Windpower Services Wind turbine maintenance services Floating Offshore Wind Floating substructures for wind turbines Hydropower Services Hydropower plant maintenance services • High activity and utilization of rigs in geothermal segment • High seasonal activity for wind services in Vertikal • Fabrication of floating substructure for Total is finalized and shipment to assembly yard in Norway is ongoing Operations
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16 • Total revenue of $348.9 million in Q2 2025 represent an increase of $39.9 million from same quarter last year, driven by growth in all business areas, offset by reduction in Land Drilling • EBITDA before expectational of $41.7 million, with a margin 11.9%, up from 10.4% last year • Exceptional items of $3.7 million in the quarter mainly relates to down manning in Argentina • EBITDA of $38.0 million is an increase of $5.2 million or 16% compared to Q2 2024 • EBIT of $ 22.1 million • Loss sale of business of $8.7 million relates to the restructuring in Argentina • Net profit of 1.4 million • Adjusted net income of $12.8 million Condensed profit & loss ($ million Q2 2025 Q2 2024 YTD 2025 YTD 2024 Operating revenues 294.4 265.4 588.6 525.5 Reimbursable revenue 54.5 43.7 102.8 91.8 Total Revenues 348.9 309.0 691.4 617.3 EBITDA before exceptional items 41.7 32.2 82.9 65.1 EBITDA margin before exceptional items 11.9% 10.4% 12.0% 10.5% Exceptional items (3.7) 0.6 (11.4) (1.5) EBITDA 38.0 32.8 71.5 63.7 EBITDA margin 10.6% 9.8% 10.3% Impairments and loss on sale of assets (0.4) (2.0) (0.9) (2.0) Depreciation, amortization, other (15.5) (15.3) (32.2) (28.6) EBIT 22.1 15.5 38.4 33.4 Loss on sale of business (8.7) - (8.7) - Result from associated entities - 1.0 - 0.9 Net interest expense (13.1) (12.1) (26.8) (23.6) Amortization of prepaid debt fees (0.5) (1.7) (1.7) (3.4) Other financial items 2.8 (0.6) (32.2) (13.1) Profit (loss) before tax 2.7 2.1 (31.0) (6.7) Income tax (1.3) (1.1) 3.4 (3.1) Net profit (loss) 1.4 1.0 (27.6) (9.8) Non-controlling interest (0.6) - (1.2) - Net adjustments* 12.0 (0.3) 45.1 13.2 Adjusted net profit (loss) * 12.8 0.7 16.4 3.4 *adjusted for impairments, exceptional items, gain on bargain purchase, MtM of financial assets, amortization of prepaid debt fees, make-whole, FX, timing of taxes and transaction cost
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17 • Cash and cash equivalents of $45.9 million, decreased by $30.9 million compared to year end 2024 • Available liquidity of $95 million and net reported NIBD $435 million. • Non-controlling interest is related to Archers 60% ownership in Iceland Drilling and 65% ownership in Vertikal Service. • Equity of $192.7 million Condensed balance sheet $ million 30.06.2025 31.12.2024 Cash and cash equivalents 45.9 76.8 Restricted cash 3.8 3.8 Accounts receivables 198.2 187.8 Inventories 83.3 75.8 Other current assets 63.5 57.0 Investments and loans to associates 0.6 - Property, plant and equipment 347.0 342.6 Right of use assets 26.8 26.4 Goodwill 192.9 174.0 Other non-current assets 61.5 56.5 Total assets 1,023.5 1,000.8 Current portion of interest-bearing debt 18.8 23.2 Accounts payable 103.7 112.2 Lease liability current 9.9 10.9 Other current liabilities 199.9 191.3 Long-term interest-bearing debt 462.0 418.1 Lease liability 16.9 15.6 Other noncurrent liabilities 2.9 6.7 Non controlling interest 16.6 15.4 Shareholder's equity 192.7 207.5 Total liabilities and shareholders' equity 1,023.5 1,000.8
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18 The Well Company I II III IV V Resilient business model with ~90% of revenues from brownfield operations and P&A Strong and robust EBITDA development throughout the market cycles Robust and simplified balance sheet following successful $425m bond refinancing Quarterly cash distributions to shareholders, at ~11% yield EBITDA growth estimated to 8-15% in 2025
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19 Appendix
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20 Key financials Revenue [$m] EBITDA [$m] NIBD [$m] CAPEX [$m] 265 284 289 295 294 200 250 300 350 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 309 335 349 343 349 Reimbursable Operational revenue 26 28 30 32 34 36 38 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 32.8 34.9 36.2 33.5 38.0 0 5 10 15 20 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 16.5 18.2 18.1 10.7 15.1 371 366 364 426 435 300 320 340 360 380 400 420 440 Q2 25Q2 24 Q3 24 Q4 24 Q1 25* 386 392 385 433 443 Prepaid debt fees NIBD * Increase in NIBD mainly related Make whole fee old bond and fees related to refinancing
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21 Condensed profit and loss statement (unaudited) (Figures in $ million) Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Operating revenues 265.4 283.5 287.9 249.3 294.4 Reimbursable revenue 43.7 51.6 60.4 48.3 54.5 Total Revenues 309.0 335.1 348.3 342.5 348.9 EBITDA before exceptional items 32.2 36.4 40.3 41.2 41.7 Total Exceptional items* 0.6 (1.4) (4.1) (7.7) (3.7) EBITDA 32.8 34.9 36.2 33.5 38.0 Depreciation, amortization, impairments, other (17.3) (15.1) (18.1) (17.1) (15.9) EBIT 15.5 19.8 18.1 16.3 22.1 Loss on sale of business - - - - (8.7) Gain from bargain purchase - 2.6 - - (0.0) Gain on equity method investment - - (0.2) - - Result from associated entities 1.0 0.9 0.3 - 0.0 Net interest expense (13.8) (15.0) (13.9) (13.7) (13.6) Other financial items (0.6) 0.1 (16.5) (36.3) 2.9 Net financial items (13.4) (14.1) (30.1) (50.0) (12.0) Net result before tax 2.2 8.3 (12.2) (33.7) 2.7 Tax benefit / (expense) (1.1) (5.4) (6.1) 4.8 (1.3) Net profit (loss) 1.0 2.9 (18.3) (29.0) 1.4 Minority interest - (0.4) - (0.6) (0.6) Net adjustments** (1.5) (1.6) 18.8 33.2 12.0 Adjusted net income (0.5) 0.9 0.6 3.6 12.8
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22 Condensed balance sheet (unaudited) (Figures in $ million) 30.06.2024 30.09.2024 31.12.2024 31.03.2025 30.06.2025 Cash, cash equivalents & restricted cash 58.4 58.6 80.6 75.5 49.7 Accounts receivables 173.6 188.2 187.8 201.5 198.2 Inventories 70.6 69.8 75.8 81.8 83.3 Other current assets 56.0 60.3 57.0 73.2 63.5 Investments and loans in associates 12.7 12.3 - 2.3 0.6 Property, plant and equipment, net 302.3 307.8 342.6 345.2 347.0 Right of use assets 29.7 28.4 26.4 25.0 26.8 Goodwill 153.1 158.2 174.0 184.0 192.9 Other non-current assets 32.6 46.5 56.5 62.8 61.5 Total assets 889.0 930.2 1,000.8 1,051.4 1,023.5 Current portion of interest-bearing debt 19.9 15.6 23.2 17.4 18.8 Accounts payable 94.6 103.5 112.2 108.5 103.7 Lease liability current 9.9 10.9 10.9 10.8 9.9 Other current liabilities 158.7 177.8 191.3 209.9 199.9 Long-term interest-bearing debt 402.1 407.2 418.1 478.0 462.0 Lease liability 19.8 17.5 15.6 14.3 16.9 Other noncurrent liabilities 2.1 6.1 6.7 3.0 2.9 Non controlling interest 0.4 0.8 15.4 15.8 16.6 Shareholder's equity 181.4 190.8 207.5 193.7 192.7 Total liabilities and shareholders' equity 889.0 930.2 1,000.8 1,051.4 1,023.5
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23 Condensed cash flow statement – last 5 quarters (unaudited) (Figures in $ million) Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Operating activities 24.4 19.7 39.4 (13.3) 6.9 Investing activities (23.4) (20.1) (61.9) (11.3) (14.1) Financing activities (0.5) (1.6) 52.2 13.0 (22.2) FX effect - 2.2 (7.6) 6.6 3.4 Total* 0.5 0.2 22.1 (5.0) (26.0) *Includes net movements in restricted cash.
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24 Archer’s capital allocation strategy Strong balance sheet and healthy debt levels Capex maintained at moderate levels Selective accretive bolt-on acquisitions Shareholder returns • Target a long-term leverage ratio of 1.5-2.0x • Maintain solid liquidity at all times • Aim to reduce overall cost of capital in the long-term • Targeting total capex of 3-4% of revenue over time • Focus on growth investments in areas with the highest return and growth potential • Self-funded capex program in Argentina • Regular and sustainable shareholder return program • Quarterly cash distributions of $5.5m in Q2 and Q3 2025 • Target to increase cash distribution to shareholders over time, in line with growth in earnings • Disciplined strategy, with selective accretive M&A • Targeting high-return, synergetic and cash generating bolt-on acquisitions Balance sheet Capex M&A Shareholder returns