Hamilton, Bermuda (May 8, 2020)
First quarter 2020Dag Skindlo, CEO of Archer comments:
"We saw a reduction in activity towards the end of March in most of our business areas following the spread of the COVID-19 and the oil price drop. Archer has since the virus emerged, monitored the situation closely to ensure the safety of our colleagues, customers and the communities in which we operate, while continuously delivering efficient operations to our customers.
Offshore operators have announced 20-30% investment cut for 2020, which gives an immediate impact on Archer activity across our global divisions. Furthermore, the lockdown in Argentina has resulted in a situation where approximately 75% of our employees are in their homes with reduced compensation. In order to mitigate the impact of the reduced activity, we have effectuated a series of cost reduction initiatives including reduction in our work force and postponement of investments.
Following the closing of the refinancing in April, Archer has adequate levels of liquidity available. Sufficient liquidity combined with our expectation that we will remain cash flow positive, enables us to withstand a meaningful drop in activity."
Archer financial outlook 2020
In the current environment there is significant uncertainty related to forecasting, and our main financial priorities are cost alignment to the reduced activity and safeguarding our liquidity. Given the significant market uncertainty we find it challenging to provide guidance, however we currently estimate the following outcome for 2020;In connection with the Trading Update, a conference call will be held at 8:00 am London time, 9:00 am Oslo time on May 8, 2020.
To listen to the conference call, the following options are available:
A. Webcast
To register for the webcast please go to https://archer.eventcdn.net/2020q1/
B. Conference call
To access the call, which is open to the public, please contact the conference call operator at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time, and ask for the "First Quarter 2020 Trading Update call"
Norway: +47 21 95 63 42
UK: +44 203 769 6819
USA: + 1 917 962 0650
Participant pincode: 404874
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.