Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q2 2023 Earnings Presentation
22 slides from Reach Subsea Asa's earnings presentation, Aug 23, 2023
Slide 1: Q2 2023 Financial results
Q2 2023 Financial results Jostein Alendal – CEO Birgitte Wendelbo Johansen – CFO 23 Aug 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 Delivering in the high season +78% +138% +69% Revenue Y/Y * EBIT Y/Y * order backlog Y/Y Record results on the back of growth, solid execution, and improved pricing Viking Reach mobilized and put into service – delivering on our clients’ expectation
Slide 4: 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 5: Deepwater gWatch campaign in Japan
Deepwater gWatch campaign in Japan Pioneering a new and innovative approach for earthquake hazard and risk reduction • The Reach Subsea Monitoring division has successfully completed a baseline survey off the coast of Japan • A major step towards our goal of adapting the gWatch technology(*) to a ne
Slide 6: Positioning Offshore Wind farm Taiwan
Positioning Offshore Wind farm Taiwan Strengthened position in the Asian market • Survey division serves diverse clients on various vessels and rigs, globally • Survey and Positioning services for Taiwan Wind Farm construction • April 2023 + 7 months • Water depth 7 – 35 meters • Mobilization in Sin
Slide 7: Vessel capacity for long-term growth
Vessel capacity for long-term growth Strong growth in order backlog as per Q2 2023 +69% 815 740 590 440 350 350 Larger tenders with longer visibility Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Tender volume increased from 2 to 5bNOK 7 7
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 VIDEO – MP4 FILE
REACH REMOTE VIDEO – MP4 FILE Click here to watch the video on our website 9
Slide 10: Reach Remote vessels ready for operation 2024
Reach Remote vessels ready for operation 2024 Steelwork finished – Vessels on their way to 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 late
Slide 11: Financials
Financials 11
Slide 12: Financials
Financials Q2 2023 Highlights • Rolling 12 months revenue at close to NOK 1.6 billion • Improved vessel utilization to 95% in a strong quarter • Order backlog increased 69% to NOK 590 million Revenue NOK 636 million (NOK 341 million), +87% EBIT NOK 148 million (NOK 50 million), incl. NOK 30 million
Slide 13: Revenue and profits raised to record levels
Revenue and profits raised to record levels Revenue increased 159 percent* last 24 months Last 12 months Revenue (MNOK) Last 12 months EBIT and Pre-tax profit 1800 250 (MNOK) (MNOK) 1600 200 1400 1200 150 1000 100 800 600 50 400 0 200 0 -50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 14: Q2 2023 key developments
Q2 2023 key developments • 87 percent revenue increase Revenue mix Q2 (MNOK) Improved activity and profit (MNOK) driven by • More project days sold, +87% • Higher prices 636 • Increased service scope +96% • NOK 30 million gain from +196% ROV sale 148 422 341 110 • Improved EBIT driven by higher acti
Slide 15: International expansion continues
International expansion continues Revenue mix by segment Revenue mix by geography* (MNOK) (MNOK) • Strategic focus on broadening +87% +87% our international footprint 636 636 continues to pay off 107 81 217 • Key growth driver in Q2 was 341 341 projects in Europe and major 500 107 assignment off the
Slide 16: Positioned for growth
Positioned for growth Solid financial position (MNOK) • Strong liquidity and equity positions 745 • Raised NOK 126 million in private 579 equity placement in Q1 2023 • Positioned for remaining investments in Reach Remote and 359 mobilizations and equipment for the 287 coming year 257 210 207 160 130
Slide 17: 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 932 910 517 861 846 793 766 660 363 608 348 306 317 535 296 287 248 218 71% 97% 99% 88% 96% 88% 95% 84% 71% 91% 93% 64% 78% 77% 67% 71% 63% 54% Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22
Slide 18: Progress on achieving ESG targets – Q2 status
Governance Progress on achieving ESG targets – Q2 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 19: Summary
Summary 19
Slide 20: 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 Significant long-term capacity secured – set for continued growth Strong market backdrop and growth momentum for revenue and earnings. Record high order backlog Bundling our new capa
Slide 21: Q&A
Q&A 21
Slide 22: “EACH
“EACH SUBSEA