Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q3 2021 Earnings Presentation
21 slides from Reach Subsea Asa's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 financial results
Q3 2021 financial results CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen 4 November 2021
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: Q3 2021 highlights
Q3 2021 highlights Financial highlights Operational highlights Q3 2020 in brackets REVENUE ▪ Excellent operational performance, zero incidents NOK 224 million (201 million) ▪ Good utilization of assets and resources EBIT ▪ High activity in renewables segment: 50% for the 9-month NOK 23 million (24 m
Slide 7: Operational utilization
Operational utilization Sold ROV and vessel days 2000 100% ROV utilization in Q3 1500 80% 77% 60% 1000 1874 ROV utilization 9M 1779 1810 40% 1445 67% 500 971 704 811 20% 654 Offshore mandays sold 9M 0 0% 9M2018 9M2019 9M2020 9M2021 100% ROV days sold Vessel days sold ROV utilization Vessel utilizati
Slide 8: Vessel fleet 2021
Vessel fleet 2021 Viking Neptun Olympic Challenger Havila Subsea Olympic Delta Olympic Artemis Stril Explorer
Slide 9: Finance
Finance REACH— SUBSEA
Slide 10: Q3 2021 key developments
Q3 2021 key developments Revenue mix third Record profitability first quarter nine months NOK MILLION NOK MILLION ▪ Strong quarterly and best ever 9-months result in 2021 ▪ Year-to-date turnover in line with last year 340 ▪ Record-high result driven by 410 71 higher share of complex projects and str
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 ▪ Strong operational performance 50 80% in 3Q and YTD 45 70% ▪ High utilization for ROV and 40 vessels, full utilization for NOK thousand per day 60% 35 offshore pool 30 50% ▪ Strong pr
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 ▪ Positioned for Reach Remote 260 investment 210 210 197 160 130 110 60 70 40 35 26 2018 2019 2020 2021 YTD Financial debt Cash and working capi
Slide 13: Good progress on achieving ESG targets
Good progress on achieving ESG targets Environment Employees Responsible business Increase activity within Reduce CO2 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: Reach Remote
Reach Remote REACH— SUBSEA
Slide 15: Diversifying portfolio into unmanned vessels
Diversifying portfolio into unmanned vessels Innovative concept Dramatically lowers Unmanned with Jointly developed in for remote and operational costs vessel and ROV cooperation with autonomous and environmental controlled from Kongsberg operations of footprint of subsea operations room Maritime an
Slide 16: Game-changing impact on emissions and economics
Game-changing impact on emissions and economics 10 Capex Daily operating cost Daily CO2 emissions NOK MILLION NOK ‘000 Tons 450 400 30 400 350 25 350 300 300 20 250 250 200 15 200 -65% 150 150 -65% 10 100 100 5 50 50 -90% 0 0 0 ROV equipped OSV Reach Remote ROV equipped OSV Reach Remote ROV equipped
Slide 17: Reach Remote on track for first USV delivery in 2023
Reach Remote on track for first USV delivery in 2023 ▪ Technical supply chain comfort soon at 100% ▪ Positive dialogue with Maritime Regulators and Governmental bodies ▪ Strong client interest worldwide ▪ Proceeding according to latest timeframe ▪ Massterly on track with marine operational center in
Slide 18: Summary
Summary REACH— SUBSEA
Slide 19: Summary and outlook
Summary and outlook ▪ Sixth quarter in a row with positive results Strong results ▪ Best 9-month result in history – pre-tax profit of NOK 50m ▪ Solid financial position with cash and working capital of nearly NOK 200m – almost 50% of current market cap. Solid financial position ▪ Limited long term
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 and ▪ S
Slide 21: Q&A
Q&A SUBSEA