First Quarter 2022 Highlights
- Revenue of $219 million
- EBITDA before exceptional items of $21.1 million
- Exceptional items of $4.9 million mainly related to Covid-19
- Net profit of $13.9 million
- Acquired Ziebel, a technology company focused on fiberoptic measurements
- Secured $840 million backlog
- Subsequent events
- Awarded a contract extension for Well Services with an additional backlog of $60 million
Dag Skindlo, CEO of Archer, comments:
“So far this year we have secured substantial backlog through contract extensions by Equinor for our well services and platform drilling division and by Pan American Energy for our land drilling division. This is achieved on the back of our dedication to safe, efficient, and cost-effective operations as well as the commitment to our own and our customers’ ESG roadmaps. The additional backlog gives us good visibility on revenue and activity in the next 2 to 3 years.
As guided in our Q4 trading update, the activity in the first quarter is lower than the previous quarter due to fewer operational days and general industry seasonality. Adjusting for reimbursable revenue, the quarterly decrease in revenue was 7% but in line with Q1 2021. Our guidance for 2022 is reduced following the substantial covid-19 related impact in the quarter, while the outlook for the rest of the year remains in line with the guidance provided in our Q4 trading update. We expect slight improvement in Q2 and a strong second half.
2022 is turning out to be a transition year for Archer, where our main clients in the North Sea are drilling fewer wells due to maintenance of platforms, and our clients in Argentina are holding back drilling activity pending the agreement with IMF and construction of the recently approved gas pipeline from Vaca Muerta to Buenos Aires. The Russian invasion of Ukraine has been a wake-up call for energy security within our core markets. This, in combination with under-investment in new oil and gas developments, puts pressure on oil and gas prices which incentivize investments going forward. Looking beyond 2022, we remain optimistic on the market fundamentals for Archer’s activity and operations.
Finally, we are pleased to report a profit of $13.9 million in the quarter, equivalent to an EPS of 9 cents.”