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Reach Subsea ASA – Q1 2023: Continued strong growth and record-high order book

Posted on May 10, 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.

Jostein Alendal, CEO

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.

Jostein Alendal, CEO

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. Jostein Alendal.

Jostein Alendal, CEO

Q1 2023 highlights (2022 figures in brackets):

  • First quarter 2023 was characterized by seasonally lower utilization, and preparations for upcoming main season.
  • 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).
  • Secured NOK 126.3 million in new equity in a private placement, and completed Viking Reach acquisition.
  • 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.
  • Strong market conditions across all sectors fuelled by high energy prices, increased focus on energy security, and structural growth in offshore renewables
  • Order backlog increased further to record high level of NOK 815 million



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.


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