Norway’s Reach Subsea has reported its best-ever first-quarter financial results, said to be driven by high utilization and project execution.
Revenue for the first quarter of 2021 was NOK 101.8 million (approximately USD 12.2 million) compared with NOK 78.8 million for Q1 2020, primarily explained by a higher project activity level.
Oil and gas revenues constituted 53% while renewable/other constituted 47% of total revenues, driven by major survey projects in the offshore wind sector. By comparison, in Q1 2020 oil and gas revenues were 75%, while renewable/other constituted 25%.
Operating result (EBIT) was NOK 12.2 million, while in the same period of the previous year it amounted to NOK -16.8 million, a boost said to be due to project results and higher utilization.
In Q1 2021, the company saw an order backlog of NOK 230 million, the same as in Q1 2020, and approximately 625 project days for execution in Q2 and beyond, mostly in the summer period.
Reach Subsea also confirmed that its Reach Remote project, launched early this year, is progressing according to schedule.
The first stage is to introduce unmanned surface vehicles (USVs) dedicated to surveys, inspection, and light repair projects. The goal is to be in the market with the first two vehicles in 2022, with the aim of providing a full portfolio of services by 2025
The Norwegian company concludes that for the 2021 season it had experienced increased tender activity within all subsea segments, and with the limited availability of mobilized vessels rates are expected to remain strong.