Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q1 2023 Earnings Presentation
23 slides from Reach Subsea Asa's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Financial results
Q1 2023 Financial results Jostein Alendal – CEO Birgitte Wendelbo Johansen – CFO 09 May 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 Well positioned for upcoming high season +81% Improved +133% Revenue Y/Y profitability order backlog Y/Y Improved utilization and profitability in low activity winter season Awarded several important contracts in renewables and O&G segments for upco
Slide 4: Building one Reach with shared vision and values
Building one Reach with shared vision and values Reach Subsea’s vision: Sustainable access to the ocean space Our values Learn. We are in constant search for new and relevant insight making us agile and difficult to keep up with. WE NEVER LEAVE YOU BEHIND Our safe and supportive Teach. We share our
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 and Inspection, maintenance & Asset integrity / Construction project management repair pipeline inspection support Everything within REAC
Slide 6: Entering the FPSO hook up market
Entering the FPSO hook up market Positioning Reach for future floating wind opportunities • Extensive engineering and planning through Q1 • Started vessel operations with mobilization and loading of equipment in Bergen and 16.03.2023 • Part of Eni’s Baleine Phase 1 Project in Ivory Coast. • On site
Slide 7: First job in the rising Brazilian market
First job in the rising Brazilian market Positioned for further expansion • Engineering, preparation and planning in Q1 • Started vessel operations with mobilization and loading of equipment in Haugesund 28.02.2023 • Part of Shearwater GeoServices extensive deepwater ocean-bottom (OBN) survey at IAR
Slide 8: Viking Reach: Long term core asset in a rising global survey market
Viking Reach: Long term core asset in a rising global survey market Good fit with Reach’s high spec subsea data acquisition and processing offering • Formal take over of Viking Reach 21.03.2023 • Mobilized with • work class ROV • high-speed Survey ROV • Hull mounted survey sensors • high specificati
Slide 9: Significant order inflow during Q1
Significant order inflow during Q1 Increased tender activity Strong growth in Key significant contracts order book as per Q1 2023 • Three-year frame agreement with Equinor for work on the Norwegian continental shelf and internationally to 2026 +133% NOKm 815 • Six months plus options contract from a
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: Targeting first Reach Remote operations in Q2 2024
Targeting first Reach Remote operations in Q2 2024 Timeline 2022 2023 Q1 2024 Q2 2024 USV building period Operational Engineering Full-scale testing, Onshore control centers certification and client verification EROV delivery Subsystems testing in manned operations 11
Slide 12: Financials
Financials 12
Slide 13: Financials
Financials Q1 2023 Highlights • Rolling 12 months revenue at close to NOK 1.3 billion • Improved vessel utilization to 88% in a seasonally low winter season • Strengthened financial position by raising NOK 126 million • Order backlog increased to record high level of NOK 815 million Revenue NOK 234
Slide 14: Revenue and profits raised to record levels
Revenue and profits raised to record levels Revenue close to doubled last 24 months, EBIT surpassed NOK 135 million Last 12 months Revenue (MNOK) Last 12 months EBIT and Pre tax profit 1400 140 (MNOK) 120 (MNOK) 1200 100 1000 80 60 800 40 600 20 400 0 -20 200 -40 0 -60 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Slide 15: Q1 2023 key developments
Q1 2023 key developments • Seasonally lower utilization, preparations for the upcoming Revenue mix Q1 (MNOK) Improved activity and profit (MNOK) main season • 81 percent revenue increase 6 driven by more project days sold, +81% higher prices and revenue from 234 acquired business -8 • Improved EBIT
Slide 16: Strong international expansion in Q1
Strong international expansion in Q1 Revenue mix by segment Revenue mix by geography (MNOK) (MNOK) • Strategic focus on broadening our international footprint paid off in Q1 +81% +81% 234 234 • Favorable geographical diversification during the low 87 season in the North Sea 129 181 129 • Key growth
Slide 17: Positioned for growth
Positioned for growth Solid financial position (MNOK) • Strong liquidity and equity positions 704 • Raised NOK 126 million in private 579 equity placement in Q1 2023 • Positioned for remaining investments in Reach Remote and mobilizations and equipment for the 287 285 257 coming year 210 207 160 130
Slide 18: Good vessel utilization in a seasonally low winter quarter
Good vessel utilization in a seasonally low winter quarter ROV days sold and % utilization Vessel days sold and % utilization 932 363 348 861 846 793 306 317 766 296 287 660 248 608 535 209 218 71% 405 84% 96% 96% 97% 99% 78% 77% 71% 88% 88% 67% 91% 93% 64% 54% 54% 63% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22
Slide 19: Progress on achieving ESG targets – Q1 status
Governance Progress on achieving ESG targets – Q1 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 20: Summary
Summary 20
Slide 21: We are in the sweet spot for continued growth and value creation
We are in the sweet spot for continued growth and value creation Proven commercial track record with strong execution Strong market backdrop and growth momentum for revenue and earnings. Record high order backlog Bundling our new capabilities into more value-added integrated services provides revenu
Slide 22: Q&A
Q&A 22
Slide 23: “EACH
“EACH SUBSEA