Norwegian contractor Reach Subsea has marked its highest quarterly result, despite challenging market and operating conditions, driven by high utilisation and successful project execution.
The oslo-listed company has booked third-quarter 2020 profit of NOK 33 million, against profit of NOK 4 million in the prior-year comparable quarter.
Revenue for 3Q 2020 was some NOK 201 million against NOK 153 million for 3Q 2019, while year to date revenue was NOK 497 million versus NOK 401 million.
For the first nine months of 2020, Reach Subsea bounced back to black with profit of NOK 29 million, versus net loss of close to NOK 11 million in 2019 comparable period.
High growth in renewables
For 3Q 2020, oil & gas revenues constituted 68 per cent, while renewable/other constituted 32 per cent of total revenues. By comparison, in 3Q 2019 oil & gas revenues were 93 per cent while renewable/other constituted 7 per cent of total revenues.
Reach had per quarter-end ten WROV systems available in addition to two “Surveyor Interceptor”, owned by a joint venture between Reach Subsea and MMT. Reach had 838 available ROV-days in 3Q 2020 (1,004 ROV days in 3Q 2019), of which 822 days were sold (589) leading to a total utilisation of 98 per cent (59 per cent). Furthermore, number of vessel days that passed through our P&L was 340 (265) in the third quarter.
The company has per 23 November 2020 a firm order book of NOK 170 million for 4Q 2020 and beyond (NOK 108 million per 19 November 2019).
Reach now has approximately 430 project days (equivalent to about 580 ROV days) for 4Q 2020 execution, and about 470 project days (700 ROV days) for 2021 execution.
New innovative subsea service solution
Reach Subsea said it is in the process of developing new innovative solutions, together with strong industrial partners, that will ‘ reshape the way subsea services are provided ‘. The anticipated impact of these solutions are significant reductions in the cost of providing subsea services, and virtually eliminating the carbon footprint associated with subsea services.
The company intends to announce its new innovative solutions in the first part of 2021, with the aim of bringing it to market in 2022.