Bermuda's Archer Q2 revenue rises on contract awards
Bermuda's Archer Q2 revenue rises on contract awards
Overview
Bermuda oilfield services firm's Q2 revenue rose yr/yr, EBITDA hit quarterly record
Company reported EBITDA margin of 17.1%, citing margin expansion and operational execution
Archer completed $30 mln bond tap and secured major P&A and drilling contracts, boosting backlog
Outlook
Archer expects P&A services to represent 15-20% of group revenue in 2026
Company sees P&A revenue growing by more than 20% in 2027
Archer reiterates previous financial guidance for the full year
Result Drivers
CONTRACT AWARDS - Co said significant contract wins, including integrated P&A projects and drilling contracts, contributed to backlog growth and revenue visibility
P&A SERVICES EXPANSION - Co said recent contract awards and investments in Plug & Abandonment services drove backlog and are expected to grow revenue by more than 20% in 2027
DRILLING EXPANSION IN ARGENTINA - Co said addition of new rig capacity in Vaca Muerta basin supported increasing activity and contributed to earnings growth
Company press release: ID:nWkr1MPwH4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $262.60 mln | $253 mln (2 Analysts) |
Q2 Adjusted EBITDA |
| $47.70 mln |
|
Q2 EBITDA |
| $44.90 mln |
|
Q2 EBITDA Margin |
| 17.10% |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas drilling peer group is "buy."
Wall Street's median 12-month price target for Archer Ltd is NOK33.00, about 33.1% above its August 12 closing price of NOK24.80
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
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Aug 12 - US Gulf of Mexico oil and gas lease sale attracts $82.7 million in high bids
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)