Reach Subsea Profit Halves
- Business & Finance
Norwegian contractor Reach Subsea has seen its quarterly profit cut in half against last year’s comparable period on lower activity.
For the third quarter 2019, Reach booked profit of NOK 4 million on revenues of NOK 154 million, versus profit of NOK 8 million, on revenues of NOK 179 million in the year-ago quarter.
To remind, in the second quarter 2019, Reached had profit of NOK 4 million on revenues of NOK 181 million, versus profit of NOK 5 million, on revenues of NOK 191 million in the year-ago quarter.
The company generated Oil & Gas quarterly revenues of 93 percent, while Renewable/Other contributed 7 percent of total revenues.
Revenue for the nine months of 2019 was NOK 401 million, against NOK 484 million for the first nine of 2018. Year-to-date revenue drop was recognized by a lower number of vessel spreads compared to the same period last year.
“Having three of our ten ROVs unavailable to the market has been costly for our profitability“, the company said in its quarterly report.
For the nine months of 2019, Reach recognized loss of NOK 11 million, compared to loss of close to NOK 6 million in 9M 2018.
The company reported order backlog of NOK 108 million, most of which is related to work in 2019, against NOK 84 million in Q3 2018.
Subsea World News Staff