Kjell-Erik Østdahl, Executive Chairman of Archer, commented: “The fourth quarter showcases the resilience of Archer as we delivered stable earnings and generated strong cash flow, while at the same time reducing our net interest bearing debt despite a high investment level. On a year over year basis, we improved EBITDA by 30% and increased EBIT by 170%. We grew the EBITDA margin from 8.1% to 10.2% as our improvement agenda materialised.
We had a quarter with strong order intake from both Platform Drilling and Land Drilling, with extension of our Platform Drilling contract with Equinor in Brazil and a US$200 million new contract with YPF for drilling in Vaca Muerta.
Furthermore, we received an LOI to for multiyear operation of modular rig Archer Topaz. A successful award of this contract will secure the rig working until 2023/2024, a key milestone and showcases the value of our modular rigs in permanently plugging and abandoning late life assets.
Archer proactively reduced its workforce to match new drilling activity as Argentina experienced changing political landscape and macroeconomic challenges. Operators in country are still in a wait and see mode, and are hesitant to increase investments until more clarity on future plans prevail. Archer continues to monitor and adapt to the situation in country.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/14022020/archer-releases-4q19-results/