Reach Subsea sees quarterly deficit grow
Norwegian contractor Reach Subsea has widened its quarterly loss against prior-year comparable period on currency effects and IFRS16 depreciation effect.
For the first quarter 2020, Reach booked loss of close to NOK 32 million, versus loss of NOK 19 million in the year-ago quarter.
To remind, in the fourth quarter 2019, Reach recorded loss of close to NOK 25 million on revenues of NOK 107 million.
Revenues for the quarter were NOK 79 million, against NOK 67 million same time last year.
The revenue boost is specifically on a higher service scope on Reach projects.
The company generated Oil & Gas quarterly revenues of 89 per cent, while Renewable/Other contributed 11 per cent of total revenues.
By comparison, in Q1 2019 O&G revenues were 79 per cent, while Renewable/Other constituted 21 per cent of total revenues.
Q1 2020 EBITDA was NOK 25.3 million versus NOK 13.5 million for 1Q2019.
The increased EBITDA is partly explained by improved project results.
Net financial items for Q1 2020 was NOK -15.1 million due to the weakening of the NOK towards the end of the quarter.
Net currency effects amounted to NOK -14.5 million in the quarter, including a NOK 22 million unrealized currency loss.
The company also reported order backlog of NOK 230 million and outstanding tender value at NOK 2 billion.