Archer’s chief executive said the outlook for “oilfield services remains uncertain”.
However, the firm is benefiting from a market diversification and early segmentation.
Company boss John Lechner addressed the market as the firm recorded its third quarter results.
The service company posted a revenue of $212.3million and a EBITDA of $17.8million for the period, a slight improvement on the previous quarter.
Mr Lecher said: “Archer’s financial performance improved from the second quarter with both higher revenue and improved margin.
“Our strong operational and HSE performance led to continued contract awards and renewals, cementing our position as the leader within platform drilling in the North Sea. Our frame agreement for P&A services with Repsol further showcased our position as a provider of integrated P&A services on the Norwegian Continental Shelf.
“Our land drilling business in Argentina increased activity in the quarter on the back of the recent contract award with Pan American Energy. We managed to deploy two of our four leased Flex rigs as planned, and we are committed to work hard to achieve incentive bonuses from efficient drilling operations. However, the operating environment remains challenging and the activity in the region may fluctuate quarter to quarter, as the demand for drilling, pulling and workover rigs changes. On the positive side, we have been awarded a contract for one of our idle rigs in Bolivia, scheduled to mobilize towards the end of the year.
“We lost slight momentum in the US during the quarter as a result of Hurricane Harvey, but we have now recovered and are confident of continued growth going forward.
“The outlook for oilfield services remains uncertain, but Archer is benefiting from exposure to differing geographies and early cycle segments. A stable oil price at current levels will support activity growth into 2018. We remain committed to de-leveraging and strengthening our balance sheet through strict capital discipline and focus on efficient operations.”
Archer won a pair of important contracts for the period. The company landed a P&A deal for platform drilling for Repsol Norway and renewed its contract for platform drilling for Chevron UK. Contract awards and renewals during the third quarter improved order backlog by roughly $100million.
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