Reach Subsea ASA: First quarter 2022 financial results

Reach Subsea ASA: First quarter 2022 financial results

06 May 2022 07:25 CEST

Reach Subsea ASA: First quarter 2022 financial results

Haugesund, 6 May 2022: Reach Subsea ASA, the trusted data and subsea service
provider for ocean-based industries, today published its first quarter 2022
financial results. Revenues were NOK 129 million, 26 percent higher than in the
same period last year, driven by increased activity. EBIT declined from NOK 12
million in Q1 2021 to negative NOK 38 million in Q1 2022, as a result of harsh
weather conditions in the North Sea, reducing utilization, seasonally negative
result in recently acquired Octio and one-off M&A cost related to the
acquisition of iSurvey.

"The first quarter was one of the most eventful and busy in Reach Subsea's
history. With the acquisition of iSurvey, the integration of Octio and Monviro,
our new strategic partnership with Wilhelmsen and the final steps towards the
signing of the contract with Kongsberg to build the first two Reach Remote USVs,
we have put together a series of essential building blocks for the Reach Subsea
of the future. Reach Subsea now has the setup to realize our vision of being a
world-leading provider of subsea data and solutions for a variety of clients,
including the oil & gas and renewable energy sectors," said CEO Jostein Alendal.

In April 2022, Reach confirmed the progress of the Reach Remote program, by
signing building contracts for two USVs with Kongsberg Maritime. The project is
on track for USV delivery and full-scale verification and certification in 2023.

"We have an exciting journey ahead as we will bring the marine subsea services
into robotics with Reach Remote, a safe and sustainable solution which
dramatically lowers operational costs and the environmental footprint of our
operations," said Jostein Alendal.

"As we have previously said, the market has entered into a healthier state with
significant increase in activity across all sectors. Based on our long-lasting
relationships with some of the world's largest energy companies, our recent
strategic moves and the significant fleet we have secured for the coming season,
we are ready to reap the benefits of a strong market and create sustainable
value for all our stakeholders both in the short- and long term," said Jostein
Alendal.

Q1 2022 highlights (numbers in brackets are comparative figures from 1Q 2021):
• Q1 2022 revenue increased 26% to NOK 129 million (NOK 102 million), driven by
increased activity and revenue from the acquired OCTIO business
• Q1 2022 EBIT NOK -38 million (12 million), negatively affected by one-off M&A
cost related to the acquisition of iSurvey of NOK 7.6 million, seasonally weak
result in OCTIO of NOK -7.2 million (not part of Reach in Q1 2021) and harsh
weather conditions reading to low vessel utilization (63% in Q1 2022 versus 96 %
in Q1 2021)
• Secured survey capacity with the acquisition of iSurvey Group, strengthening
the depth and scope of our capabilities and improving our market position.
• Secured NOK 150 million in new equity in private placement towards industrial
partner Wilhelmsen New Energy
• Improving market conditions going forward across all sectors fuelled by higher
commodity prices, increased focus on energy security, and structural growth in
renewables.
• On track for the delivery of first Reach Remote USVs in 2023. Long lead items
such as the USVs and eROVs secured by signing contracts with Kongsberg and
Kystdesign, respectively

For further details, please see the attached first quarter 2022 report and
presentation.

Reach Subsea CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen will host a
webcast presentation of the results in English, followed by a Q&A session at
10:00 CEST today. Please submit written questions during and after the
presentation through the webcast player.
Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20220506_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.

Contact information:
Birgitte Wendelbo Johansen
Chief Financial Officer
Reach Subsea ASA
[email protected]

About Reach Subsea:
Reach Subsea ASA Group offers subsea services as a subcontractor and/or directly
to end clients, based out of our head office in Haugesund. The core business of
the Group is based on modern, high spec Work ROVs operated by highly-qualified
offshore personnel, and supported by onshore engineering resources. The Group's
objective is to be a preferred subsea partner and full-service provider of
subsea operations for clients, focusing on safety, environment, financial
solidity and profitability.

www.reachsubsea.no

This information is subject to the disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

561344_Reach Subsea ASA Group consolidated presentation 1Q2022.pdf
561344_Reach Subsea ASA Group consolidated report 1Q22.pdf

Source

Reach Subsea ASA

Provider

Oslo Børs Newspoint