Haugesund, 7 November 2023: Reach Subsea ASA, the trusted data and subsea service provider for ocean-based industries, today published its third quarter 2023 results with solid revenue and profitability growth. Revenue grew by 79 percent to NOK 651 million, whereas EBIT was NOK 112 million, compared to NOK 58 million in Q3 2022, with EBIT margin reaching 17.3 percent.
The third quarter of 2023 was another record-breaking quarter for Reach Subsea, and we have now experienced robust revenue growth for nine straight quarters. On a rolling 12-month basis, our revenue now stands at NOK 1.85 billion, and over the past two years, we’ve nearly tripled our revenue on this same basis. Our order backlog was record-high when we entered the summer season, which has been the by far the busiest period in the company’s history.Jostein Alendal, CEO of Reach Subsea
During the past two years, Reach Subsea has ramped up its capabilities and capacity to be able to benefit from the strong market. In October the company obtained access to the Australian market and world-leading survey capabilities through the acquisition of Guardian Geomatics. The company offers a variety of marine survey solutions to the oil and gas industry, and Government sector clients. These include geographical, hydrographic, oceanographic, and environmental surveys.
We are thrilled to welcome an extremely experienced team and an excellent proprietary surveying and data processing technology platform into the Reach Subsea family. The acquisition accelerates our strategic global expansion agenda and opens new doors for us in Australia and the Asia Pacific markets. Guardian Geomatics will serve as an enabler for launching our unmanned Reach Remote platform in Australia and other global markets.Jostein Alendal, CEO of Reach Subsea
The first two autonomous subsea support vessels, named Reach Remote, are expected to be ready for commercial projects in the 2024 main season. The construction of the hulls is completed, whereas outfitting, development of subsystems and control centers are progressing, while full-scale testing, certification and client verification will progress in the new year.
With Reach Remote, we are taking a leading position in marine robotics, and we are now ready for global expansion. These unmanned vessels promise to revolutionize the industry, boasting substantial reductions in costs and emissions, together with enhanced personnel safety. Coupled with our expanded, cost-efficient traditional vessel fleet and our comprehensive subsea services offering, we stand poised for sustained growth and positive development on the back of the strong market outlook for the upcoming years.Jostein Alendal, CEO of Reach Subsea
Q3 2023 highlights (2022 figures in brackets):
- Record high quarterly turnover and continued strong EBIT driven by growth, improved pricing, and strong project execution
- EBIT for the third quarter 2023 was NOK 112.4 million (NOK 58.4 million), while pre-tax result was NOK 92.3 million (NOK 67.3 million)
- EBIT for the first nine months of 2023 was NOK 252.3 million (NOK 70.6 million), while pre- tax result was NOK 208.4 million (NOK 79.2 million)
- Strong market conditions across all sectors fueled by high energy prices, increased focus on energy security, and structural growth in offshore renewables.
- Strong growth outlook with larger tenders with longer visibility. Outstanding tender volume NOK 7,5 bn (up from NOK 5 bn at Q2 23)
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: Invitation to presentation of the third quarter 2023 results – Reach Subsea
The report is available here Reach-Subsea-ASA-3Q2023-consolidated-report.pdf (reachsubsea.no). The presentation is available here PowerPoint Presentation (reachsubsea.no) and www.newsweb.no.
A recorded version of the webcast presentation will be available after the live stream is concluded.
For more information please contact:
Birgitte Wendelbo Johansen
Chief Financial Officer
Reach Subsea ASA
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 Jorunn Håvardsholm, Marketing and Communications Manager at Reach Subsea ASA on the time and date provided.