Archer Limited: Q3 2026 trading and shareholder distribution update

Hamilton, Bermuda (October 21, 2026)

Archer Limited ("Archer") reports another strong quarter with an EBITDA of $44.2 million and an EBITDA margin of 16.5% in the third quarter of 2026, including negative effects of roughly $3 million related to an industrial offshore strike in Norway in July. EBITDA increased 8% year-over-year when adjusting for the divested workover business in Argentina.

Net interest-bearing debt ("NIBD") increased to ~$525 million, mainly reflecting delayed resolution to commercial matters relating to the Culzean EPC wind project and growth investments. The main Culzean project deliveries have been completed, but negotiations with the client related to material variation orders, and a claim against a subcontractor, has taken longer than anticipated and remains unresolved. Given the dividend restrictions under the Company's financing arrangements, current leverage level, and uncertainty regarding the timing and amount of potential recoveries, Archer will temporarily pause its shareholder distributions. Any future resolution to outstanding variation orders and claim, will reduce the debt level accordingly. The Board intends to revisit the shareholder distribution program early 2027 as leverage level is expected to reduce and as visibility regarding the outstanding variation orders and claim improves. Archer has decided not to pursue further offshore wind EPC projects, and will pursue strategic options for Archer Wind, including partial or full divestment.

Q3 financial highlights

- Revenue: $267.6 million

- EBITDA before exceptional items: $48.4 million - Q3 EBITDA: $44.2 million - Q3 EBITDA margin: 16.5% - Backlog including options $3.8 billion - Temporary pause in shareholder distribution - Awarded a large integrated P&A contract on Apache-operated fields in the UK. - Awarded a five-year super-spec drilling contract in Argentina's Vaca Muerta basin - Full year financial guidance reiterated.

Archer's CEO, Dag Skindlo, comments:

"Whilst it is disappointing to pause our shareholder distributions, we aim to resume our policy of shareholder distributions once it is prudent to do so and specifically when there is greater visibility on the resolution of ongoing commercial discussions relating to the Culzean project.

Operational performance remained solid during the quarter across Well Services, Platform Operations and Land Drilling, with EBITDA from continuing operations increasing 8% year on year, despite the impact of an offshore industrial strike in Norway.

Over the past few years, we have prioritized growth through increased capital investment and M&A, contributing to an annual EBITDA growth of more than 20% from 2022 to 2025. Our current backlog of approximately $3.8 billion implies roughly $600 million of future EBITDA in hand and provides strong long-term earnings and cash flow visibility.

The underlying business remains robust, and we reiterate our full-year EBITDA guidance. Our backlog provides confidence for continued EBITDA growth in 2027 and deleveraging."

Subsequent events

Subsequent to quarter-end, Archer has secured new contract award in Argentina and a strategic partnership for Well Services in Brunei.

- Archer has been awarded a three-year drilling contract with YPF in Vaca Muerta, including an option for a two-year extension with an estimated contract value of $100-110 million over the full five-year period - Archer has entered a technical and commercial partnership with AMRTUR, establishing a platform for the introduction of Archer's technologies and well services capabilities in Brunei. The first project is to support AMRTUR's recently awarded slickline services contract over 5 years with a major operator in Brunei.

Conference call details

In connection with the trading update, Archer will host a call on October 21st, at 09.00 CEST where participants will be able to follow the presentation:

A. Webcast

To register for the webcast please go to https://events.q4inc.com/attendee/885072683

B. Conference call

To access the call, which is open to the public, please dial in at the participant telephone numbers listed below. Please call in 10 minutes prior to the scheduled start time and ask for the "Archer Q3 2026 Trading Update Presentation."

Participants dial-in:

United Kingdom: +44 117 389 0104

United States: +1 585 542 9983

Germany: +49 800 5890994

All other locations: +44 808 196 8935

Meeting ID: 885 072 683

The operator will ask for your name and company. Following the presentation there will be a Q&A session. Information on "how to ask questions" will be given at the beginning of the Q&A session.

For additional 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 pursuant to section 5 -12 of the Norwegian Securities Trading Act.