Haugesund, 23 August 2023: Reach Subsea ASA, the trusted data and subsea service provider for ocean-based industries, today published record high revenue and EBIT for the second quarter of 2023. Revenue grew by 78 percent to NOK 636 million, whereas EBIT was NOK 148 million, a growth of 138 percent adjusted for a one-off sales gain of NOK 30 million. The order backlog grew by 69 percent to NOK 590 million, and tender volume is currently at an all-time high of approx. NOK 5 billion (2.3 billion one year ago).
Our order backlog was record-high when we entered the summer season, and we are now in the middle of the by far most busy period in the company’s history. Project execution has been excellent in the second quarter, while tender activity has been extremely high. This is a solid confirmation of our very positive market outlook for the coming years,”
Jostein Alendal, CEO
During the last 18 to 24 months Reach Subsea has ramped up its capabilities and capacity to be able to benefit from the strong market. The offshore subsea support vessel fleet has been renewed and expanded on long-term contracts with favorable terms. In parallel, Reach Subsea has acquired important capabilities within surveying and geophysical monitoring.
Our increased capacity, broadened service offering, and global presence implies that we now can compete for a much broader set of assignments. The strategic expansion comes with perfect timing, as there is strong growth in demand for services in the ocean space. The roll-out of offshore wind is accelerating with enormous need for subsea work, and high energy prices stimulate the activity in the oil and gas sector. Energy security is another driver for the demand. On top of this comes emerging segments such as deep-sea mining, carbon storage and offshore fish farming
Jostein Alendal, CEO
Reach Subsea plans further capacity expansions, and in 2024, the first two autonomous subsea support vessels, named Reach Remote, are expected to be launched. The construction of the hulls is completed, whereas outfitting, development of subsystems and control centers are progressing.
With much lower investment and operating costs combined with significantly lower emissions than conventional vessels, the autonomous Reach Remote will be a game changer not only for Reach but for the whole industry
Jostein Alendal, CEO
Q2 2023 highlights (2022 figures in brackets):
- Record high results driven by growth, improved pricing, and strong project execution
- EBIT for the second quarter 2023 was NOK 148.2 million, including a gain of NOK 29.8 million, (NOK 49.8 million), while pre-tax result was NOK 110.4 million (NOK 56.2 million)
- EBIT for the first six months of 2023 was NOK 139.8 million (NOK 12.2 million), while pre- tax result was NOK 116.0 million (NOK 11.9 million)
- Strong market conditions across all sectors fueled by high energy prices, increased focus on energy security, and structural growth in offshore renewables
-ENDS-
Reports
QUARTERLY PRESENTATION
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/landingpage/hegnarmedia/20230823_5/
Reports
Questions may be submitted during the presentation through the webcast player.
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