Photo: Courtesy: Reach Subsea

Best full year result in history for Reach Subsea

Norwegian contractor Reach Subsea has seen another record quarter in 2020 as well as the best annual result in the company’s history.

Despite challenging market and operating conditions, Reach maintained high utilisation levels and successful project execution.

The oslo-listed company has booked fourth-quarter 2020 profit of NOK 14 million, against NOK 25 million loss in 3Q 2019.

Revenue for 4Q 2020 was NOK 131 million against NOK 107 million for 4Q 2019. Full-year 2020 revenue was NOK 628 million versus NOK 508 million IN 2019.

Reach Subsea also bounced back to black in 2020 with profit of NOK 43 million, versus net loss of close to NOK 36 million in 2019.

More work outside O&G

For 4Q 2020, oil & gas revenues constituted 43 per cent, while renewable/other constituted 57 per cent of total revenues. By comparison, in 4Q 2019 oil & gas revenues were 93 per cent.

Good start in 2021

Reach has seen a busy tendering activity during the quarter, despite market turbulence, with 550 project days secured for 2021.

This is an improvement from the 400 days at the same time last year.

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To remind, Reach, in partnership with MMT, recently landed a three-year deal, with two one-year options from Nord Stream AG.

“Looking into 2021 and beyond we see that the dramatic changes in global energy markets creates a business environment with both challenges and opportunities.

“Subsea services provided to the oil & gas sector, our historical core market, will have lower activity levels than in the past,” Reach said in Q4 earnings report.

Going forward, the company believes it can utilise its core subsea service competence in the growing offshore wind sector as well as new emerging sectors such as offshore fish farming and subsea mining.

Reach has proposed a dividend of NOK 0.15 per share to be resolved at the AGM on 26 May 2021.