Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q4 2023 Earnings Presentation
19 slides from Reach Subsea Asa's earnings presentation, Feb 14, 2024
Slide 1: Quarterly Consolidated Report Q4 2023
Q4 2023 Everything within Reach Presentation Quarterly Consolidated Report Sustainable access to ocean space Jostein Alendal – CEO Birgitte Wendelbo Johansen – CFO 14 February 2024 Find out more at reachsubsea.com
Slide 2: Disclaimer
4th Quarter 2023 2 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 t
Slide 3: Reach Subsea moved to the next level
4th Quarter 2023 3 Reach Subsea moved to the next level NOK 1 996 million NOK 331.8 million NOK 1 200 million Revenue 2023 EBIT 2023 Order backlog +72%Y/Y +216% Y/Y +62% Y/Y A record year and 4Q on all parameters The Board will propose a dividend per EBIT for 4Q2023 was NOK 79.5 million driven by gr
Slide 4: Complete provider of subsea services
4th Quarter 2023 4 Complete provider of subsea services IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry Engineering & Project Management Construction Support Inspection, maintenance & Asset integrity/Pipeline repair inspection Gas res
Slide 5: Serving strong customer base across sectors
4th Quarter 2023 5 Serving strong customer base across sectors Oil & Gas Offshore Wind Offshore Cables Emerging Sectors High global investment levels due Offshore fish farming, subsea to focus on energy security. Structural growth market as the Structural growth market mining, environmental Ageing i
Slide 6: Vessel capacity for long-term growth
4th Quarter 2023 6 Vessel capacity for long-term growth Strong order backlog in start of 2024* *Does not include options and expected call- off extensions under frame agreements +62% 1200 815 740 690 590 440 350 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2022 2022 2023 2023 2023 2023 Outstanding tender volume NOK 8
Slide 7: Reach Remote will be sailing in the summer of 2024
4th Quarter 2023 7 Reach Remote will be sailing in the summer of 2024 Haugesund, Bergen, Oslo Aberdeen Houston Trinidad & Singapore Tobago Rio Perth Reach Remote leveraging global expansion Reach Subsea | Quarterly Consolidated Report 2023
Slide 8: The three organic growth levers
4th Quarter 2023 8 The three organic growth levers Grow number of spreads Increase service scope on spreads Roll out Reach Remote Offer clients same service at lower cost, Roughly half of spreads currently serving lower HSE risk, and at low/no carbon Currently operating 6 Long Term subsea clients wi
Slide 9: Financials
Q4 2023 Financials Find out more at reachsubsea.com
Slide 10: Financials Q4 2023 Highlights
4th Quarter 2023 10 Financials Q4 2023 Highlights • Strong Q4 quarter leveraged by global operations • 2023 revenue at NOK 1.996 million • NOK 0.36 dividend proposed for 2023 • Order backlog increased to NOK 1.2 billion Revenue NOK 474 million (NOK 327 million), +45 % EBIT NOK 80 million (NOK 35 mil
Slide 11: Revenue and profits raised to record levels
4th Quarter 2023 11 Revenue and profits raised to record levels Revenue increased 191 percent* last 24 months Annual Revenue (MNOK) Annual EBIT and Pre-tax profit (MNOK) 350 2000 1800 300 1600 250 1400 200 1200 1000 150 800 100 600 400 50 200 0 0 2018 2019 2020 2021 2022 2023 -50 2018 2019 2020 2021
Slide 12: Q4 2023 Key developments
4th Quarter 2023 12 Q4 2023 Key developments Revenue mix Q4 2023 Improved activity and profit • 45 percent revenue increase for the quarter driven by +45% • Increased number of project days 331% • Higher pricing 474 • Integrated, full service 130% scope • Improved EBIT driven by higher 327 80 81 pri
Slide 13: International expansion continues
4th Quarter 2023 13 International expansion continues Revenue mix by segment (MNOK) • Increased activity in "solutions" driven by projects in walk to work, IMR and light construction • Strategic focus on broadening our +45% +45% international footprint continues – expanding to Australia • High activ
Slide 14: Positioned for growth
4th Quarter 2023 14 Positioned for growth Solid financial position (MNOK) • Strong liquidity and equity positions 928 • Raised NOK 126 million in private equity placement in Q1 2023 579 • Well-positioned for remaining investments in Reach Remote and mobilizations and equipment for the coming year 33
Slide 15: Strong growth in vessel capacity and high utilization
4th Quarter 2023 15 Strong growth in vessel capacity and high utilization ROV days sold and % utilization Vessel days sold and % utilization 932 550 910 861 517 846 793 806 766 444 660 659 363 348 567 317 306 287 248 218 96% 97% 99% 95% 100% 78% 77% 67% 84% 71% 71% 71% 69% 91% 93% 88% 92% 54% 65% 63
Slide 16: Progress on ESG targets – full year 2023
4th Quarter 2023 16 Governance Progress on ESG targets – full year 2023 80% completion of Code of Conduct and Anti- bribery courses Not achieved Environment Social Increase activity within Reduce COE emissions Work-related sick leave Zero work-related 80% completion of non –Oil & Gas segment compare
Slide 17: Summary
Q4 2023 Summary Find out more at reachsubsea.com
Slide 18: Positioned for continued growth and value creation
4th Quarter 2023 18 Positioned for continued growth and value creation 1 ATTRACTIVE MARKET OUTLOOK High investments in oil & gas and renewable energy set to continue for years 2 POSITIONED FOR FURTHER GROWTH Expanded service offering, expanded long-term vessel capacity, growing global footprint 3 HI
Slide 19: Q&A
4th Quarter 2023 19 Q&A Reach Subsea | Quarterly Consolidated Report 2023 Contents