Reach Subsea ASA - Q4 2022: Record strong results and order book

14 Feb 2023 07:00 CET

Reach Subsea ASA - Q4 2022: Record strong results and order book

Haugesund, 14 February 2023: Reach Subsea ASA, the trusted data and subsea
service provider for ocean-based industries, today published record high revenue
and operating profit for the full year and fourth quarter 2022. The order
backlog at the end of 2022 was 7x higher than one year earlier.

In Q4, revenue grew by 84 percent to NOK 327 million, whereas EBIT grew
underlying with 180 percent to NOK 35 million. For the full year 2022, revenue
grew to NOK 1,163 million whereas EBIT ended at NOK 105 million.

“We have increased our service offering and at the same time expanded our vessel
capacity on favorable terms during 2022. Combined with high activity and
utilization, this has led to very strong development both in revenue and
profitability. Reach Subsea is now a complete end-to-end subsea service provider
with a modern and flexible core fleet, and with an order book of NOK 740 million
we are up for a continued strong development,” said CEO of Reach Subsea Jostein
Alendal.

The Board of Reach Subsea has resolved to propose a dividend for 2022 of NOK
0.18 per share, in line with one year earlier.

“Profitable growth and a prudent and shareholder friendly capital allocation
strategy is important to Reach Subsea, and we are delivering on our dividend
policy, as we know this is important to many of our shareholders,” said Jostein
Alendal.

In 2022, Reach Subsea started the construction of the first autonomous subsea
support vessels, Reach Remote.

“We are looking very much forward to start utilizing robotic technology also on
the surface. This will change the industry in terms of operating cost, CAPEX,
safety and not the least emissions. With the increased cost related to
conventional subsea vessels, Reach Remote appears more attractive than ever,”
said Jostein Alendal.

The Reach Remote project is progressing well, with delivery late 2023.

Q4 and Full year 2022 highlights (2021 figures in brackets):

• Record 4Q and full year EBIT fuelled by high utilization, improved pricing,
solid execution and addition of new businesses.
• EBIT for 4Q2022 was NOK 34.6 million (NOK 25.7 million), while pre-tax result
was NOK 18.8 million (NOK 22.6 million).
• EBIT for full year 2022 was NOK 105.2 million (NOK 79.1 million), while
pre-tax result was NOK 98.0 million (NOK 73.0 million).
• iSurvey and Octio, our businesses acquired the last year, contributed
positively to both our market footprint and financial results.
• Strong market conditions across all sectors fueled by high energy prices,
increased focus on energy security, and structural growth in offshore
renewables.
• Taking multiple steps to increase capacity and integrate services to exploit
the improving business environment.


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 CET.

Questions may be submitted during the presentation through the webcast player.

Webcast link: https://channel.royalcast.com/landingpage/hegnarmedia/20230214_3/

The report and presentation will be made available at https://reachsubsea.no and
www.newsweb.no.

A recorded version of the presentation will be available after the live stream
is concluded.


***

Contact information:
Birgitte Wendelbo Johansen
Chief Financial Officer
Reach Subsea ASA
bwj@reachsubsea.no

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 of the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act. The information was submitted for
publication by CFO Birgitte Wendelbo Johansen, on behalf of the Company at the
date and time set out above.

More information:
Access the news on Oslo Bors NewsWeb site

582256_Reach Subsea ASA consolidated report 31.12.2022.pdf
582256_Reach Subsea ASA Q4 2022 presentation.pdf