Archer Limited: Archer reports Q4 financial results and announces the commencement of quarterly cash distributions to shareholders
Hamilton, Bermuda (February 27, 2025)
Drilling and well services provider Archer announces cash distribution to shareholders of $5.5 million in Q2 2025, financial results for Q4, and preliminary financials for full year 2024.
Archer's CEO, Mr. Skindlo, comments:
"Archer is pleased to announce its shareholder return program, which along with the refinancing, lays the foundation for quarterly cash distributions to shareholders. We will initiate quarterly cash distributions to shareholders in the second quarter of $5.5 million. Given our resilient cash flow from operations, we plan to gradually increase our cash distribution to shareholders as we continue to grow our business. "
Archer has grown substantially both organically and through strategic M&A over the last few years. Archer reports 2024 EBITDA of $135 million and guides further growth of 15-25% in 2025, approximately 90% above Archer's 2022 EBITDA results.
Highlights from the Q4 trading update:
- Revenue of $349 million, up 14% year-over-year
- Adjusted EBITDA of $40 million, 21% above the same period last year
- Full year 2024 EBITDA of $135 million, and pro forma full year EBITDA of $156 million, both in line with Archer's guidance
- Proforma leverage ratio, at a historic low, of 2.3x year-end 2024
- The acquisition of WFR and the subsequent $50 million private placement continued Archer's growth strategy and strengthened our balance sheet
Subsequent events
- Successful placement of 5-year USD 425 million senior secured bond to refinance existing debt of the Group and finalized a full refinancing of Archer
- Announcement of capital allocation strategy and initiation of cash distribution to shareholders in second quarter of 2025
Shareholder return program
- Initiate regular and sustainable shareholder return program
- First quarterly cash distribution of $5.5 million to shareholders in Q2 2025
- Archer to increase cash distribution to shareholders in line with expected growth in earnings
Please see our latest investor presentation on our webpage; Investor presentation - February 2025
For further information, please contact:
Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email: espen.joranger@archerwell.com
Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78 748, Email: joachim.houeland@archerwell.com
This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.