Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q4 2021 Earnings Presentation
23 slides from Reach Subsea Asa's earnings presentation, Feb 8, 2022
Slide 1: Q4 2021 financial results
Q4 2021 financial results CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen 8 February 2022
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: Reach Subsea in brief
Reach Subsea in brief ▪ Subsea services for all types of offshore assets through the whole lifecycle ▪ We provide clients with Data and Solutions for their subsurface assets ▪ Our services are delivered from a subsea vessel, utilizing the right technology, managed by our skilled people ▪ Developed f
Slide 4: Serving strong customer base across sectors
Serving 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 electri
Slide 5: Active in fast-growing markets worldwide
Active in fast-growing markets worldwide
Slide 6: Q4 2021 highlights: Record strong Q4 and FY 2021
Q4 2021 highlights: Record strong Q4 and FY 2021 Financial highlights Operational highlights Q4 2020 in brackets ▪ Excellent operational performance, zero incidents, and good REVENUE utilization of assets and resources NOK 191 million (131 million) ▪ Good activity in renewables segment: 31% of proje
Slide 7: Operational utilization
Operational utilization Sold ROV and vessel days ROV utilization in Q4 3000 100% 77% 90% 2500 80% ROV utilization 2021 70% 2000 60% 70% 1500 50% 2667 Offshore mandays sold 2021 2388 40% 2215 1000 1790 30% 100% 1298 20% 500 956 1098 818 10% Vessel utilization 2021 0 0% 12M 2018 12M 2019 12M 2020 12M
Slide 8: Vessel fleet 2022
Vessel fleet 2022 Viking Neptun Olympic Challenger Havila Subsea Olympic Delta Olympic Artemis Stril Explorer
Slide 9: Finance
Finance REACH— SUBSEA
Slide 10: Q4 2021 key developments
Q4 2021 key developments Revenue mix fourth Record 12M profitability quarter*) NOK MILLION NOK MILLION ▪ Best ever Q4 and full year results for 2021, exceeding the previous 2020 record ▪ Year-to-date turnover in line 472 with last year 473 79 73 ▪ Record-high result driven by higher share of complex
Slide 11: Positive trend driven by utilization and solid execution
Positive trend driven by utilization and solid execution EBITDA drivers EBITDA driven by execution and utilization 50 80% ▪ Strong operational performance 45 70% in 4Q and YTD 40 NOK thousand per day 60% ▪ High utilization for ROV and 35 30 50% vessels, full utilization for 25 40% offshore pool 43 2
Slide 12: Positioned for growth
Positioned for growth Solid financial position NOK MILLION Strong balance sheet ▪ Liquidity and equity positions are strong ▪ Delivering on dividend policy: Board proposes NOK 0.18 dividend per share for 2021, up 287 from NOK 0.15 for 2020 210 210 207 ▪ Positioned for Reach Remote 160 investment 130
Slide 13: Good progress on achieving ESG targets
Good progress on achieving ESG targets Environment Employees Responsible business Increase activity within Reduce COE emissions Work-related sick leave at Zero work-related injuries Maintain customer non-Oil&Gas segment to compared to activity low level (less than 1.0%) satisfaction score at 4 and 5
Slide 14: Summary
Summary ▪ Another quarter in a row with positive results – substantial increase in pre-tax profit Strong results ▪ Best 4Q and annual result in company’s history, driven by high utilization and successful project execution ▪ Solid financial position with cash and working capital of above NOK 200m –
Slide 15: OCTIO acquisition and Reach Remote
OCTIO acquisition and Reach Remote
Slide 16: OCTIO offers complete geophysical monitoring solutions
OCTIO offers complete geophysical monitoring solutions
Slide 17: Strong strategic fit with Reach Subsea
Strong strategic fit with Reach Subsea ▪ Strengthens Reach Subsea’s survey and inspection data processing capabilities, with patented technology ▪ Offers highly compelling value proposition to oil and gas companies ▪ Expands Reach Subsea’s services portfolio into the Carbon Capture and Storage (CCS)
Slide 18: Diversifying portfolio into unmanned vessels
Diversifying portfolio into unmanned vessels Innovative concept Dramatically lowers Unmanned with Jointly developed for remote and operational costs vessel and ROV in cooperation with autonomous and environmental controlled from Kongsberg operations of footprint of subsea operation room Maritime and
Slide 19: Reach Remote project status / timeline
Reach Remote project status / timeline ▪ Technical supply chain comfort at 100% ▪ Secured and ordered vital components and subsystems for 2023 delivery ▪ Finalizing selection of yard for fabrication ▪ Proceeding according to latest timeframe ▪ Massterly on track with marine operational center in Hor
Slide 20: Offer from potential strategic partner on Reach Remote
Offer from potential strategic partner on Reach Remote ▪ Reach has received an offer from an undisclosed strategic partner, which involves: ▪ Strategic co-operation on commercialization of Reach Remote ▪ A directed equity issue of NOK 150m towards the strategic partner at NOK 3.25 per share ▪ Issue
Slide 21: Summary
Summary REACH— SUBSEA
Slide 22: 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 and ▪ S
Slide 23: Q&A
Q&A SUBSEA