Hamilton, Bermuda (May 10, 2017)
Archer Limited ("Archer") today presents the company strategy and financial outlook at its Investor Day 2017 held in Oslo, Norway. The company outlines its leading positions in selective segments of the oil services industry, an EBITDA margin target of 11% through the cycle, and the ambition of selective non-core divestments. Archer reiterates the short term guidance of a second quarter of 2017 in line with the first quarter, and a sequentially stronger second half of 2017.
"Archer has been successful in turning around its operations and is currently delivering a positive cash flow in a challenging market environment. We have secured a financial runway to 2020, with sufficient cash to support our operations until the market recovers. In addition, we are well-positioned in attractive segments of the oil services industry that are expected to be among the first to recover in an improving market, including our substantial exposure to a high-growth US onshore market. However, global offshore operators are still cautious and measured in their spending," says John Lechner, Chief Executive Officer of Archer.
Archer today hosts its Investor Day 2017 at the Engineerium, outside Oslo, Norway, where it is presenting a more operationally efficient company with an updated strategy. "Archer has a portfolio of companies with meaningful operational leverage requiring limited capex, allowing us to grow both rapidly and profitably as the market improves. We have adopted an approach which allows us to think strategically regarding all our businesses, using both organic and structural levers that best secure value for our shareholders", says Lechner.
Archer provides the following financial group outlook:
- EBITDA margin: Management target of above 11% through the next cycle
- Capex: Sustainable at 3-4% of revenues as the growth capex program in drilling assets is finalized
- Continued balance sheet de-leveraging: Break-even cash flow at an annual EBITDA of USD 55 million, in addition to selective non-core divestments
- 2017 activity: Second quarter 2017 in line with the first quarter 2017, with increased activity in the second half of 2017
The Investor Day 2017 presentations are enclosed, and can also be downloaded at the investor relations section of www.archerwell.com
You may also find the presentations, and follow a LIVE webcast of today's Investor Day, here:
For further information, please contact:
Dag Skindlo, CFO and EVP Strategy
+ 47 98 22 66 24
dag.skindlo@archerwell.com
Joachim Houeland, Corporate Treasurer
+47 482 78 748
joachim.houeland@archerwell.com
About Archer
Archer is a global oil services company with a heritage that stretches back over 40 years. With a strong focus on safety and delivering the highest quality products and services, Archer operates in 40 locations over 19 countries providing drilling services, well integrity & intervention, plug & abandonment and decommissioning to its upstream oil and gas clients. Archer is publicly traded on the Oslo Stock Exchange under the ticker ARCHER. The main operations currently take place in the major basins within Europe, North and South America and the company is expanding rapidly throughout the Middle East, Asia Pacific and West Africa.
www.archerwell.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
http://www.globenewswire.com/NewsRoom/AttachmentNg/56b32d83-f5a4-497c-855a-a51c5cd1e2d7
