Oilfield services firm Archer has delivered what it describes as “solid results” in an “extreme year”.
The Norway-headquartered firm, which has a main UK base just outside of Aberdeen, posted pre-tax profits of £2.9million in 2020, compared to losses of £36m the prior year.
CEO Dag Skindlo said Archer had adjusted cost levels to meet changes in demand in 2020.
However, the firm has a 53% market share of North Sea platform drilling ahead of KCA Deutag (26%) and Odfjell (20%), while well plugging and abandonment saw 20% growth year on year.
Archer said it employed 4,500 people as of December 31 after announcing in May it would cut 12-15% of its workforce of 5,000.
Restructuring costs, mainly related to severance in the UK and Argentina, totalled $23.6m (£16.6m).
Mr Skindlo said: “I am proud of how Archer delivered operationally and financially in the fourth quarter, resulting in positive net income and a strong liquidity position. Despite the challenges we have faced in 2020, our employees have done a tremendous job to further develop our company and improve our service-offerings.
“We have during 2020 adjusted our cost levels to meet the changes in demand for our services, and I am pleased to report that we have delivered net positive cash flow from operations for five consecutive years, even in an extreme year as 2020.”
Well plugging and abandonment is a “growing business area” Mr Skindlo said.
Brownfield oil and gas accounted for around 90% of revenues, which totalled $715.1m in 2020, down 14% from $833.6m in 2019.
Mr Skindlo added: “Looking forward, we will focus on organic growth to build on our strong contract backlog combined with Archer’s proprietary technology.
“Furthermore, we are exploring accretive M&A opportunities which can segment our position within brownfield operations and well P&A.”