Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q3 2022 Earnings Presentation
22 slides from Reach Subsea Asa's earnings presentation, Nov 8, 2022
Slide 1: Q3 2022 Financial results
Q3 2022 Financial results Jostein Alendal – CEO Birgitte Wendelbo Johansen – CFO 8 November 2022 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: Q3 2022 highlights
Operations Q3 2022 highlights Strong third quarter in solid market Another record-breaking financial quarter with revenues and EBIT growing 64% and 150%, respectively Significant contract awards exceeding NOK 200 01 million for the main season 2023 in Europe and Brazil Signed agreement with Volstad
Slide 4: Reach Subsea in brief
250 4 Reach Subsea in brief employees countries A complete subsea services and data provider 10 2 Work class ROVs High speed survey ROVs 4 2 Vessels on full time charter USVs in order • 10 years of subsea experience, constantly challenging technical boundaries • Focus on safety and environment • Fin
Slide 5: We provide services for all offshore assets
We provide services for all offshore assets • Through the whole lifecycle • We provide clients with Data and Solutions for clients’ subsurface assets c • Services are delivered by our skilled people using the right technology from a subsea vessel • Expanding into Carbon Capture and Storage segment •
Slide 6: Strong customer base across sectors
Strong customer base across sectors Oil & Gas Offshore Wind Offshore Cables Emerging Sectors Structural decrease in new Offshore fish farming, subsea installations, but ageing Structural growth market as the Structural growth market mining, environmental installed base requires world electrifies sur
Slide 7: Expanding into CCS with OCTIO
Expanding into CCS with OCTIO Monitoring reservoirs with patented technology Efficient CCS storage management • Constrain uncertainties in the volumetric expansion of the injection plume • Reduce uncertainties in in-situ CO2 density • Pressure communication in the reservoir • Detect vertical leakage
Slide 8: We expand globally
We expand globally Recent contracts in new geographies Australia and Brazil Bergen Haugesund Oslo Aberdeen • Strategic partnership Houston with large offshore Trinidad & Tobago company in Brazil Singapore • First international Brazil contract for OCTIO in Australia Australia • Reach Remote is an ide
Slide 9: Successful strategic transition – execution on track
Successful strategic transition – execution on track Foundation for strategic transition in place H1 2022 Successful execution in H2 2022 and onwards Strengthening of Reach’s data management and data 01 01 iSURVEY and OCTIO working closely with rest of Reach. First joint projects delivered analytics
Slide 10: 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 11: Unmanned
Unmanned Remotely Controlled Vessel Connecting Subsea robotics to Marine robotics Mobile Power Bank Data Centre Communication Module Work Class E-ROV tethered to the Safekeep offshore data acquisition for Robust communication platform enabling mother vessel, self supplied with power live progress tr
Slide 12: Financials – Q3 2022 Highlights
Financials Q3 2022 Highlights • High activity, near full utilization, and improved pricing drives profitability to record levels • Improved ROV utilization of 74% in the nine months of 2022, compared to 67% in the same period last year • Strong market with high activity in oil and gas segment driven
Slide 13: Q3 2022 key developments
Q3 2022 key developments Revenue mix Q3 Higher project activity • 63 percent revenue growth (MNOK) and profit (MNOK) • High number of project days sold +63% +189% • Higher pricing 365 +150% 67 • Acquisitions of iSurvey and 58 Octio • 189 percent growth in pre-tax profit 224 • High utilization in a s
Slide 14: Strong growth in EBIT
Strong growth in EBIT YoY EBIT bridge (MNOK) 58 • Solid execution in strong market 9 0 • Good pricing development • Very high utilization of ROVs and vessels eliminated non-utilization cost 26 • Good development in Octio and 23 iSurvey, contributing positively to profitability EBIT Q3 21 Project res
Slide 15: Positioned for growth
Positioned for growth Solid financial position (MNOK) 565 • Consolidated balance sheet after M&A transactions • Strong liquidity and equity positions • Positioned for remaining Reach 325 Remote investment of NOK 320m 287 • Debt financing of NOK 200m 210 207 • Remaining NOK 120m well 160 covered by e
Slide 16: Steady growth in ROV and vessel activity and utilization
Steady growth in ROV and vessel activity and utilization ROV days sold and % utilization Vessel days sold and % utilization 932 348 861 846 317 793 296 306 287 660 608 218 209 405 91% 96% 96% 97% 84% 88% 93% 78% 71% 64% 67% 77% 54% 63% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q1 21 Q2 21 Q3 21 Q4 2
Slide 17: Long-term positive revenue and profitability trend
Long-term positive revenue and profitability trend Last 12 months Revenue (MNOK) Last 12 months EBIT and Pre tax profit 1200 150 (MNOK) (MNOK) 1000 120 90 800 60 600 30 400 0 200 -30 0 -60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2019 2020 2021 2022 2
Slide 18: Progress on achieving ESG targets - Q3 status
Responsible business Progress on achieving ESG targets - Q3 status Develop and implement audit plan for suppliers Achieved Environment Employees Increase activity within Reduce COE emissions Work-related sick leave Zero work-related Maintain customer non-Oil&Gas segment to compared to activity at lo
Slide 19: Summary
Summary 19
Slide 20: The trusted data and subsea service provider for ocean-based industries
The trusted data and subsea service provider for ocean- based industries Rapidly growing ocean-based Well-positioned to capture Robust financial profile industries market profitable growth opportunities ▪ Stable oil and gas market mid to long-term, ▪ Leveraging 10+ years of spotless execution ▪ Soli
Slide 21: Q&A
Q&A 21
Slide 22: Reach Subsea
“EACH SUBSEA