Reach Subsea Hikes Q2, H1 Still in Red

Norway’s Reach Subsea has bounced back to profit during the second quarter 2015 on higher vessel utilisation after plunging into red in Q1 2015.

The Oslo-listed company booked a Q2 2015 net profit of NOK 7.4 million ($900K) compared to NOK 6.9 million ($840K) in a year-ago quarter.

The EBITDA was NOK 18.7 million, which represents a quarterly record for the company. The improved results were due to high utilization for Edda Form and the ROV-systems onboard Dina Star and Stril Explorer, and also ROV services onboard Viking Neptun working for Technip.

In the first quarter this year, however, the company booked a net loss of NOK 9.2 million ($1.2 million) which still leaves the company in red (approx. NOK 1,8 million) for the first six months of 2015.

“The second quarter 2015 has been stronger than winter 2015, however weaker than historical spring seasons. The outlook, however, is quite challenging. The slowdown in offshore oil & gas activity, significant decline in the oil price, and consequent reductions in the spending budgets of our clients will be challenging for subsea service companies,” the company said in Q2 report.

The company’s largest shareholder, as per August 21, 2015, is Accello Partners with 30.8 per cent, followed by Joso Invest with 9.1 per cent.

Earnings per share for the second quarter 2015 was NOK 0.10, while year-to-date EPS came at negative NOK 0.02, compared to 1H 2014 EPS of NOK 0,33.

Reach Subsea reported an order book of close to NOK 280 million, of which approximately NOK 200 million (excluding options) is related to work for the remainder of 2015.