Reach Subsea ASA: Full year and fourth quarter 2021 financial results
Haugesund, 8 February 2021: Reach Subsea ASA, the trusted data and subsea
service provider for ocean-based industries, today published its full year and
fourth quarter 2021 financial results.
4Q 2021 highlights (numbers in brackets are comparative figures from 4Q 2020):
• The best fourth quarter and annual result in company’s history, driven by high
utilization and successful project execution as well as a one-off effect from
the purchase of OCTIO.
• The Board proposes a dividend of NOK 0.18 per share (NOK 0.15).
• 4Q 2021 revenue increased 46% to NOK 191 million (NOK 131 million), driven by
continued high utilization of assets and resources, a higher share of complex
projects and successful project execution.
• 4Q 2021 EBIT increased 73 percent to NOK 26 million (NOK 15 million), while
pre-tax profit was NOK 23 million (NOK 14 million).
• Year to date revenue increased 9 percent to NOK 687 million (628 million),
EBIT was 79 million (51 million), while pre-tax profit was NOK 73 million (43
million).
• Deepened Reach Subsea’s technology competence and expanded value chain through
acquisition of geophysical monitoring solutions provider OCTIO.
• Continued high activity in renewables segment with 31% and 45% of project days
generated from non-oil & gas clients in 4Q 2021 and year-to-date, respectively.
• Entered into a charter agreement with Olympic Subsea for the use of three
modern subsea vessels for the 2022 season.
• Awarded contract in US Gulf for end of 2021 and 2022 execution, representing
around 230 project days.
• On track for the delivery of first Reach Remote USV in 2023. Significant
interest from clients and potential partners across the world.
“The fourth quarter 2021 was another strong quarter for Reach Subsea with 46
percent revenue growth and strong growth in profitability compared to the same
period in 2020. I am happy to say that 2021 as a whole was the best year ever
for our company. Key drivers were high vessel utilization and successful project
execution,” said Reach Subsea’s CEO Jostein Alendal.
In parallel with the strong operational results, Reach Subsea has continued to
execute on its M&A strategy as well as development of autonomous Reach Remote
system.
“The acquisition of geophysical monitoring solutions provider OCTIO deepens
Reach Subsea’s technology competence and expands our value chain, thereby
accelerating our strategy to become a full-service provider of subsea data and
solutions for clients globally,” said Mr. Alendal, and continued:
“OCTIO’s patented technologies and competence will strengthen the data
gathering, data processing, and data analytics capabilities of Reach Remote. We
are on track for the delivery of our first Reach Remote USV in 2023. By 2025,
our ambition is to provide a full portfolio of subsea services from a
low-emission, cost-effective remote and autonomous fleet by 2025.”
After a long period of volatility, Reach Subsea experiences a stabilizing market
situation.
“We are seeing healthy demand across sectors. High commodity prices, led by
record-high gas prices, are driving up activity levels in the petroleum sector.
The emergence of new industries is also gathering pace, as reflected by the
recent “ScotWind” seabed tender, and record high carbon capture project pipeline
growth globally in 2021. Our strong customer relations, long experience and
cutting edge technology from offshore oil and gas, means that we are well
positioned to take part in the structural growth of renewable energy projects,”
said Jostein Alendal.
For further details, please find the report and presentation on our Finance Report page
Reach Subsea CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen will host a
webcast presentation of the results in English at 10:30 CET today. You can
follow the webcast on this direct link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220208_2
A recorded version of the presentation will be available after the live stream
is concluded. Participants will have the opportunity to submit questions online
throughout the webcast session.
STRATEGIC PARTNER
Reach Subsea ASA (“Reach”) has received an offer from an undisclosed strategic partner to enter into a comprehensive agreement covering both an equity investment in Reach and a strategic co-operation on commercialisation of Reach Remote. The offer is for Reach to issue 46,126,567 new shares towards the strategic partner at NOK 3.25 per share, thereby raising NOK 150 million in new equity.
Furthermore, the offer entails that Reach will issue warrants at a subscription price of NOK 4.00 per share whereby each warrant will give the strategic partner the right to subscribe for one new Reach share. The warrants have a duration of 3 years and can be exercised anytime. If all warrants are exercised, the strategic partner will potentially end up with a 33% ownership stake.
The Board of Reach is positive to the proposed offer, which is subject to relevant corporate approvals by both parties and certain other conditions.
The Board will work towards finalising and concluding an agreement within the next couple of weeks, to be put forth to an extraordinary general meeting in Reach.
For further information, please contact:
Birgitte Wendelbo Johansen
Chief Financial Officer
Reach Subsea ASA
bwj@reachsubsea.no