HOUSTON: Archer Limited, a leading provider of drilling and well services, reported strong financial results for the first quarter of 2025 and confirmed its inaugural quarterly cash distribution to shareholders.
The company announced revenue of $342.5 million, an 11% year-over-year increase, while EBITDA climbed 9% to $33.5 million, underscoring Archer’s ability to expand revenues and improve margins despite broader market challenges.
“Our growth over the last few years, combined with the refinancing of Archer in February, has provided the foundation to introduce our first shareholder return program,” said CEO Dag Skindlo. “We are pleased to confirm the first quarterly cash distribution of NOK 0.63 per share, payable on or about May 28.”
Archer also secured several high-value contracts, including a long-term agreement with Repsol for late-life and plug-and-abandonment (P&A) services on seven UK platforms and a milestone subsea P&A contract with Equinor in Norway. The company has secured over $550 million in new contracts since the start of the year, bolstering growth prospects into 2026 and beyond.
Industry Position and Outlook
As the energy sector navigates economic uncertainty and shifting U.S. trade policies, Archer’s focus on brownfield operations and P&A services positions it for relative stability. The company reaffirmed its 2025 financial guidance, projecting low single-digit revenue growth, a 15-25% rise in EBITDA, and capital expenditures at approximately 4% of revenue.
Archer also announced a strategic investment in electrochemical steel removal technology for rigless subsea P&A, which it says has the potential to reshape industry standards and costs.
Despite reduced land drilling activity in Argentina—expected to lower annualized global revenue by roughly 5%—the company anticipates minimal impact on cash flow due to cost-saving measures.
With a robust pipeline of contracts and technological advancements, Archer remains focused on sustaining growth and enhancing shareholder value.