Archer to take control of geothermal drilling firm Iceland Drilling

Norwegian drilling and well services provider Archer Ltd (OSE:ARCHO, LON:0RBA) announced on Friday that it has signed an agreement to raise to 60% its stake in high-temperature geothermal drilling company Iceland Drilling.

With nearly 200 employees, Iceland Drilling is active across renewable service segments such as deep drilling for electricity generation, wells for district heating and cooling and carbon storage wells. The company, which has drilled over 400 deep wells since 1970, according to its website, operates in Iceland and the Philippines.

“Geothermal energy is an important part of the future energy mix which has direct overlap and synergies with Archer’s core services. We have a clear ambition to increase our well services participation in the growing geothermal market and we are monitoring opportunities to deploy idle and lower specification land rigs to geothermal projects globally,” Archer’s CEO Dag Skindlo said.

The additional shareholding of 10% will be purchased from Archer’s joint venture partner Kaldbakur for USD 2.5 million (EUR 2.27m) worth of Archer stock. The transaction is set to close within the next two months.

The Norwegian firm took its initial 50% interest for USD 8.25 million in 2022.

Archer noted in the press statement that the addition of Iceland Drilling into its financial accounts is projected to increase the company’s full-year 2024 pro-forma revenue by around 4% and earnings before interest, taxes, depreciation and amortisation (EBITDA) by 6% to 7%.

(USD 1 = EUR 0.910)

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