Reach Subsea ASA - Q1 2023: Continued strong growth and record-high order book
Haugesund, 9 May 2023: Reach Subsea ASA, the trusted data and subsea service
provider for ocean-based industries, today published record high revenue and and
an improved EBIT for the first quarter of 2023. Revenue grew by 81 percent to
NOK 234 million, and the order backlog grew 133 percent to a record-high NOK 815
million.
"Reach Subsea is perfectly positioned in a market with strong growth in demand
both within traditional oil and gas-related services and renewable energy. Our
growth is enabled by a strong team, a fleet of top modern vessel fleet on
financially attractive long-term charters, an upgraded equipment pool, and an
end-to-end product and service offering," said CEO of Reach Subsea Jostein
Alendal.
The profitability of Reach Subsea was improved in the first quarter, which is
seasonally soft in terms of utilization. Operating profit (EBIT) was negative
NOK 8 million compared to negative NOK 38 million in Q1 2022. Pre tax profit was
NOK 6 million compared to a loss of NOK 44 million in the same period in 2022.
"We have increased our capacity since last year, and I am happy to see that we
increased our vessel utilization, which drives the margin improvement. During
the first quarter, we have phased in several new vessels and spent time
mobilizing and preparing them for the upcoming high season. The strong
development in order backlog indicates continued strong growth, and high
utilization going forward," said Jostein Alendal.
So far this year, Reach Subsea has announced several major contracts both within
oil and gas and offshore wind, including a three-year frame agreement with
Equinor for work on the Norwegian continental shelf and internationally to 2026.
In 2024 Reach Subsea expects to launch its first two autonomous subsea support
vessels, Reach Remote. Construction of the vessels, subsystems and control
centers are progressing, and full-scale testing, certification, and client
verification will commence early 2024.
"Robotics is the future in this industry. For a large range of tasks, we can use
the small, cost-efficient Reach Remote support vessels with nearly no emissions.
Our customer dialogue indicates great interest in the concept worldwide, and we
expect to see Reach Remote ready for clients from the main season in 2024," said
Jostein Alendal.
Q1 2023 highlights (2022 figures in brackets):
o First quarter 2023 was characterized by seasonally lower utilization, and
preparations for upcoming main season.
o EBIT for 1Q 2023 was NOK -8.4 million (NOK -37.7 million), while pre- tax
result was NOK 5.6 million (NOK -44.3 million).
o Secured NOK 126.3 million in new equity in a private placement, and completed
Viking Reach acquisition.
o On track with mobilizations, equipment upgrades and preparations for the main
season in 2023 and the coming years with a fleet of top spec, modern vessels,
ROVs and survey spreads.
o Strong market conditions across all sectors fuelled by high energy prices,
increased focus on energy security, and structural growth in offshore renewables
o Order backlog increased further to record high level of NOK 815 million
-ENDS-
QUARTERLY PRESENTATION
Reach Subsea's CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen will host
a webcast presentation of the results in English today at 9:30 CEST.
Questions may be submitted during the presentation through the webcast player.
Webcast link: https://channel.royalcast.com/webcast/hegnarmedia/20230509_4
The report and presentation will be made available at https://reachsubsea.no and
www.newsweb.no.
A recorded version of the presentation will be available after the live stream
is concluded.
For more information please contact:
Birgitte Wendelbo Johansen
Chief Financial Officer
Reach Subsea ASA
bwj@reachsubsea.no
About Reach Subsea:
Reach Subsea ASA Group offers high quality solutions and technology to clients
in need of ocean data and services. Services are offered out of our head office
in Haugesund as well as from our subsidiaries and branches located across
Norway, US, UK, Cyprus, Singapore, Trinidad and Brazil. The Group's objective is
to be a preferred partner and full-service provider of ocean services for
clients, focusing on safety, environment, financial solidity and profitability.
Our vision "Sustainable access to ocean space" underpins our commitment to the
development of sustainable solutions, with stakeholder groups key interests in
focus.
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation (MAR) and is subject to the disclosure requirements
pursuant to MAR article 17 and Section 5-12 the Norwegian Securities Trading
Act. This stock exchange announcement was published by Birgitte Wendelbo
Johansen, Chief Financial Officer at Reach Subsea ASA on the time and date
provided.