Hamilton Bermuda (August 16th, 2024)
In the second quarter, Archer continued to deliver strong growth with revenue of $309 million and EBITDA of $32.8 million, representing a YOY-growth of 5% and 9% respectively. Year to date, Archer's EBITDA has grown by 15% over the same period last year, highlighting Archer's continued ability to grow revenue while improving margins. 
 Second Quarter 2024 Highlights:

• Revenue of $309 million; up 5% YOY
• EBITDA of $32.8 million, up 9% YOY
• H1 EBITDA of $63.7 million, up 15% YOY
• Positive net income in second quarter of $1.0 million
• Strong backlog at $2.5 billion ($4 billion including options)
• Reiterate 2024 guidance

• Acquired managed pressure drilling service provider
• Acquired Moreld Offshore Wind
• Increased ownership in Iceland Drilling to 60%

"We are pleased to report another robust quarter with underlying growth. In the quarter we have secured new contracts and completed strategic acquisitions that enhance our service offerings and position us for future growth.  Our market view remains positive. Our continued growth and resilient cash flow profile reduces financial leverage and is the foundation for shareholder value.

The markets for Archer's core services are growing and a backlog of USD 4 billion, including options, provides good visibility for activity and earnings going forward. Archer maintains its estimate of 15-20% EBITDA-growth in 2024 as well as a further reduction of leverage ratio to between 2.4 and 2.7 at year-end 2024. Furthermore, with continued organic growth in a robust market and combined with recent acquisitions we see solid earnings growth for 2025 which will enable growth in cash flow to equity.

In Argentina, there are numerous governmental and client driven initiatives that support both short and long-term growth of drilling and completion activity in the Vaca Muerta basin, including new legislation for large investments and continued investments in infrastructure for export.  We are also pleased that with the recovery of the Central Bank's external reserves, payments to foreign suppliers have been regulated, and we have been able to make rig leases payments during the first half of the year.

The acquisition of ADA bolsters our capabilities in the Vaca Muerta basin and enables us to provide integrated advanced managed pressure drilling services to our largest customers. With attractive financials and overlapping clients, the acquisition fits well with Archer's strategy of synergetic and accretive bolt-on acquisitions. The transaction is expected to increase Archer's 2025 EBITDA by 2-4%.

The increased ownership in Iceland Drilling capitalizes on improved operational and financial performance and demonstrates how we can generate value while participating in the new energy landscape.  We expect to increase Archer's 2025 EBITDA by 6-7% on a full year basis when we start to consolidate Iceland Drilling.

Our acquisition of Moreld Ocean Wind, now Archer Wind, is based on a near term pipeline of projects. The company and the floating substructures they offer have been validated by major energy companies as they have been downselected as preferred suppliers for upcoming wind farm projects.

Archer's growth and transition agenda includes the expansion of services in the renewables energy industry. On a proforma full year basis, Archer's renewable includes service revenue of between $60 and $70 million, an EBITDA margin of 10-15%, and a positive cash flow. We have been disciplined in managing the renewable service lines and our strategy is to develop these into long-term industrial services as we generate ongoing profits and cash flow. The renewable service business goes hand in hand with our strategy to contribute to the energy transition by focusing on plugging and abandonment of oil and gas wells. The offshore well P&A market is set to grow for the next 25 years as platforms and wells age, reaching technical and economic limits.

• Archer acquires Moreld Ocean Wind  (https://archerwell.com/archer-acquires-moreld-ocean-wind/)
• Archer acquires Managed Pressure Drilling service provider (https://archerwell.com/archer-acquires-managed-pressure-drilling-service-provider/)
• Archer increases ownership in geothermal specialist Iceland Drilling (https://newsweb.oslobors.no/message/625387)

CONFERENCE CALL TODAY AT 09:00 CEST

Archer will host a conference call at 9:00 am CEST on August 16, 2024. To follow the presentation, the following options are available:

A. Webcast

To register for the webcast please go to https://events.q4inc.com/attendee/962813451

B. Conference call

To access the call, which is open to the public, please dial in at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time and ask for the "Archer Second Quarter 2024 Earnings Release Call".

• United Kingdom +44 20 3936 2999
• United States +1 646 787 9445
• Norway: +47 815 03 308

Access code: 839779

The operator will ask for your name and company. Following the presentation there will be a Q&A session. Information on how to ask questions will be given at the beginning of the Q&A session.

For more information, please visit www.archerwell.com or contact:

Espen Joranger, Chief Financial Officer | Mobile: +47 982 06 812 | Email: espen.joranger@archerwell.com

Joachim Houeland, Manager Treasury & Investor Relations | Mobile: +47 482 78 748 | Email: joachim.houeland@archerwell.com

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)