Reach Subsea ASA · OSL:REACH
Reach Subsea ASA — Q3 2023 Earnings Presentation
21 slides from Reach Subsea ASA's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial results
Q3 2023 Financial results Jostein Alendal – CEO Birgitte Wendelbo Johansen – CFO 7 November 2023 1
Slide 2: Disclaimer
Disclaimer IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Reach Subsea ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the ora
Slide 3: Consistent strong performance along strategic path
Consistent strong performance along strategic path Strong performance in the high season +79% +93% +20% Revenue Y/Y EBIT Y/Y order backlog Y/Y Strong results on the back of growth, solid execution, and improved pricing Excellent operational performance on all offshore spreads Record high revenue lev
Slide 4: Vessel capacity for long-term growth
• Strong order backlog into the winter season. Guardian Geomatics orderbook of NOK 160 Vessel capacity for long-term growth • million included • Expecting high order intake the coming months 2023 2024 2025 2026 2027 for next year season Viking Reach Owned vessels Reach Remote 1 & 2 Reach Remote 3 &
Slide 5: Complete provider of subsea services
Complete provider of subsea services IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry Engineering & Project Construction support Inspection, maintenance & Asset integrity/Pipeline Management repair inspection Everything within REACH Su
Slide 6: Reservoir monitoring technology
Snøhvit Reservoir monitoring technology PROJECT IN BRIEF: • Client: Equinor Askeladd • Vessel: Viking Reach Albatross Reach Subsea delivering integrated solutions • Period: August – October 2023 • Scope: High-precision time-lapse gravity and vertical seafloor deformation monitoring • Environmentally
Slide 7: Expansion through acquisition of Guardian Geomatics
Expansion through acquisition of Guardian Geomatics Effective access to the Australian market • Add ongoing and established business in Australian and international markets. Haugesund, Bergen, Oslo Aberdeen • Surveying competence implies attractive synergies with Reach Subsea globally Houston • Add
Slide 8: Reach Remote – a strong business case is getting even stronger
We are taking a leading position in Reach Remote – a strong marine robotics and are ready for business case is getting global expansion even stronger The next steps in subsea operations Technology is enabling a radical redesign of how ROV operations are performed: shifting from a capital- and person
Slide 9: Reach Remote vessels ready for operation 2024
Reach Remote vessels ready for operation 2024 Vessels at Trosvik yard, Norway 2023 USV building period, Onshore control centers, EROV delivery Subsystems testing in manned operations Q1 2024 Full-scale testing, certification and client verification Delivery of EROV's Q2 2024 later this year Vessels
Slide 10: Financials
Financials 10
Slide 11: Financials – Q3 2023 Highlights
Financials Q3 2023 Highlights • Rolling 12 months revenue at NOK 1.85 billion • Improved vessel utilization to 95% in a strong quarter • Order backlog increased 20% to NOK 530 million Revenue NOK 651 million (NOK 365 million), +79% EBIT NOK 112 million (NOK 58 million) Pre-tax profit NOK 92 million
Slide 12: Revenue and profits raised to record levels
Revenue and profits raised to record levels Revenue increased 195 percent* last 24 months Rolling last 12 months Revenue (MNOK) Rolling last 12 months EBIT and Pre-tax profit (MNOK) 2000 350 1800 300 1600 250 1400 1200 200 1000 150 800 100 600 50 400 200 0 0 -50 2018 2019 2020 2021 2022 Q3 2023 2018
Slide 13: Q3 2023 key developments
Q3 2023 key developments Revenue mix Q3 (MNOK) Improved activity and profit (MNOK) • 79 percent revenue increase +79% driven by 652 • More project days sold +37% • Increased service scope +93% • Higher pricing 112 365 463 92 • Improved EBIT driven by 67 higher activity with strong 58 utilization and
Slide 14: International expansion continues
International expansion continues Revenue mix by segment Revenue mix by geography (MNOK) (MNOK) • Strategic focus on broadening +79% +79% our international footprint 652 652 continues – expanding to 95 135 Australia post quarter end 365 365 196 • Key growth driver in Q3 was 41 improved pricing and s
Slide 15: Positioned for growth
Positioned for growth Solid financial position (MNOK) • Strong liquidity and equity positions 823 • Raised NOK 126 million in private equity placement in Q1 2023 579 • Well-positioned for remaining investments in Reach Remote and 386 mobilizations and equipment for the 287 coming year 257 210 207 16
Slide 16: Strong growth in vessel capacity and high utilization
Strong growth in vessel capacity and high utilization ROV days sold and % utilization Vessel days sold and % utilization 932 910 550 861 517 846 793 806 766 660 348 363 535 306 317 287 248 218 71% 69% 96% 97% 99% 88% 95% 100% 78% 77% 84% 71% 71% 91% 93% 67% 54% 63% Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 2
Slide 17: Progress on achieving ESG targets – Q3 status
Governance Progress on achieving ESG targets – Q3 status 80% completion of Code of Conduct and Anti- bribery courses In progress Environment Social Increase activity within Reduce COE emissions Work-related sick leave Zero work-related 80% completion of cyber non –Oil & Gas segment compared to activ
Slide 18: Summary
Summary 18
Slide 19: We are in the sweet spot for continued growth and value creation
We are in the sweet spot for continued growth and value creation High investments in oil & gas and renewable energy set to 1 Growing market continue for years Positioned for Expanded long-term vessel capacity, growing global footprint, 2 further growth complete product offering High and growing Stro
Slide 20: Q&A
Q&A 20
Slide 21: Reach Subsea
“EACH SUBSEA