Reach Subsea ASA
LSE:0EMB
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Reach Subsea ASA
Reach Subsea ASA is a holding company, which engages in the provision of offshore and subsea services to the oil industry. The company is headquartered in Haugesund, Rogaland and currently employs 109 full-time employees. The company offers subsea services as subcontractor directly to end customers. The Company’s business is based on Remotely Operated Underwater Vehicles (ROV) operated by offshore personnel and supported by onshore project management and engineering resources. Reach Subsea operates through two segments: the Oil & Gas segment, that is engaged in surveying, Inspection, Maintenance and Repair (IMR) and light construction projects for oil & gas companies while the Renewable/Other segment provides those services to non-oil & gas companies. The Company’s services include also geophysical monitoring services, environmental monitoring services as well as in-house engineering. Reach Subsea ASA has several subsidiaries, such as Reach Subsea AS, Connect Offshore AS and Reach International AS.
Reach Subsea ASA is a holding company, which engages in the provision of offshore and subsea services to the oil industry. The company is headquartered in Haugesund, Rogaland and currently employs 109 full-time employees. The company offers subsea services as subcontractor directly to end customers. The Company’s business is based on Remotely Operated Underwater Vehicles (ROV) operated by offshore personnel and supported by onshore project management and engineering resources. Reach Subsea operates through two segments: the Oil & Gas segment, that is engaged in surveying, Inspection, Maintenance and Repair (IMR) and light construction projects for oil & gas companies while the Renewable/Other segment provides those services to non-oil & gas companies. The Company’s services include also geophysical monitoring services, environmental monitoring services as well as in-house engineering. Reach Subsea ASA has several subsidiaries, such as Reach Subsea AS, Connect Offshore AS and Reach International AS.
Q3 Results: Third quarter results were below expectations due to lower vessel utilization and extraordinary costs tied to Reach Remote's implementation and certification.
Margins: EBIT margin dropped to 7.3% from 16% a year ago, mainly due to idle time and start-up expenses for Reach Remote.
Revenue: Quarterly revenue was NOK 688 million, down from NOK 834 million in Q3 last year, but year-to-date revenue slightly exceeded last year's 9-month period.
Cash Position: Operational cash flow was strong at NOK 340.6 million and the company ended Q3 with a solid cash and working capital position of approximately NOK 850 million, supported by a NOK 500 million bond issue.
Reach Remote Milestones: Achieved a breakthrough as the first unmanned vessel licensed to operate in Norwegian oil and gas fields; remote operations are expanding to Australia, with positive client reception.
Outlook & Guidance: Management does not provide guidance but sees long-term demand as healthy, with flexibility to adjust fleet size in response to market conditions.
CapEx & Financing: Main CapEx focused on Reach Remote 1, 2, 3, and 4; strong financing in place for expansion, including a NOK 735 million bank facility.
