With sevenfold increase in backlog, Reach Subsea sees another ‘record’ year

Norway-headquartered Reach Subsea has achieved “record” high revenue and operating profit for the full year and fourth quarter of 2022, with its order backlog seven times higher than in the year earlier.

Illustration (Courtesy of Reach Subsea)

For the full year of 2022, revenue grew to NOK 1,163 million (around €107.3 million) whereas EBIT ended at NOK 105.2 million (around €9.7 million), compared to NOK 79.1 million in 2021.

In Q4, revenue grew by 84 per cent to NOK 327 million (over €30 million), whereas EBIT grew underlying with 180 per cent to NOK 34.6 million (around €3.2 million).

The improvement is said to be fuelled by high utilization, improved pricing, solid execution and the addition of the iSurvey and Octio businesses.

Last year, Reach Subsea started the construction of the first autonomous subsea support vessel Reach Remote. According to the company, the project is progressing well, with delivery in late 2023.

“We have increased our service offering and at the same time expanded our vessel capacity on favorable terms during 2022. Combined with high activity and utilization, this has led to very strong development both in revenue and profitability,” said Reach Subsea’s CEO Jostein Alendal.

“Reach Subsea is now a complete end-to-end subsea service provider with a modern and flexible core fleet, and with an order book of NOK 740 million we are up for a continued strong development.”

To remind, this is not the first time Reach Subsea achieved a record year. Namely, the Norwegian company reported 2021 as the best financial year in company history.

In terms of its most recent news, Reach Subsea at the end of 2022 signed an agreement with Østensjø Rederi to acquire one of its multipurpose ROV support vessels.

This month, the company entered into a charter contract and corresponding option arrangement with Olympic Subsea for the multifunctional subsea support and construction vessel Olympic Triton, as well as secured a contract and vessel capacity to deliver a decommissioning scope in the North Sea.