Reach Subsea in Norway says it is “positioning for growth” and is well placed to invest in new technology and other assets.
Announcing details of Q2 2017 the company said it had an all-time high level of activity in the quarter, with six vessels in operation at the end of Q2, and a strong orderbook for Q3.
Q2 EBITDA before amortisation of a termination fee was Nkr4.4M (US$570,000) compared with Nkr12.6M in Q2 2016, with the reduction largely explained by the cost of growth activities and delayed start-up on some projects moving revenues and profits from Q2 to Q3/Q4 2017. EBITDA for H2 2017 was Nkr6.8M (Nkr6.6M for the same period in 2016).
Reach Subsea said Q2 was “characterised by growth activity” and said its fleet has been increased by 50% by adding two subsea vessels, Havila Subsea (May) and Olympic Delta (end June).
“The downturn in the industry has created attractive low cost and low risk growth opportunities,” said Reach Subsea. “The group maintains a strong liquidity and equity position (62.2%), positioning it to further invest in innovative technology and invest in other assets to leverage a platform for a future recovery. Tender activity is high for work in 2017 and beyond.” It said the outstanding tender value is around Nkr1.7Bn, compared with Nkr1.6Bn at the end of Q1 2017.