Reach Subsea ‘very optimistic for years ahead’ as it reports record 2023 numbers

Reach Subsea has reported record-high numbers for the fourth quarter of 2023 and the whole year, with all parameters driven by growth, improved pricing, and strong project execution.

Reach Subsea’s revenue for Q4 2023 grew by 45% to NOK 474 million ($44.5 million), whereas EBIT grew by 130% to NOK 79.5 million ($7.4 million). Revenue for the full year 2023 was NOK 1,996 million with an EBIT of NOK 332 million which gives an EBIT margin of 17%.

The orderbook grew by 62% compared to the last quarter of 2022. The outlook was evidenced by a record-high backlog of NOK 1.2 billion (NOK 740 million) and tender volume of NOK 8 billion (NOK 2.5 billion), with execution in Q1 2024 and beyond.

According to Jostein Alendal, CEO of Reach Subsea, the company is experiencing a high organic growth potential in the foundation it has set the past years, its spreads and services are gaining a larger global footprint, and its capabilities are directly transferrable to the wider ocean space sectors. Combined with introducing new technologies to service these markets Alendal said Reach Subsea was “very optimistic for the years ahead”.

“The fourth quarter of 2023 was record-breaking for Reach Subsea and so was the entire year of 2023. Whilst we are pleased to take our revenues to the NOK 2 billon level, even more satisfactory is our ability to continue to deliver increased margins along with the growth. We have now experienced robust revenue growth for ten straight quarters. We are progressing towards the next level in terms of size, and the outlook appears exceptionally robust,” said Alendal.

The Norwegian company noted that it had during the past years increased its service deliveries to the renewable markets and global markets and the acquisition of Guardian Geomatics was an important step in obtaining access to the Australian market which also serves as an important platform for the Reach Remote USV.

Guardian Geomatics is set to be fully integrated into the Reach Group this year.

The first two Reach Remote USVs are expected to be ready for commercial projects during the main season of 2024 as vessel outfitting and development of subsystems and control centers are progressing well. The testing of subsystems is starting this month and the extensive full-scale testing, certification, and client verification will start later in the spring.

“With Reach Remote, we are taking a leading position in marine robotics, and we are very excited about launching these vessels this year. A launch that is slightly later than first anticipated but at no surprise and with no major consequences,” Alendal said.

In January, Reach Subsea announced it had increased its order backlog by securing new contracts, extending existing ones, and receiving call-offs within current frame agreements in the North Sea and the Americas region.

The news came after the company signed a charter contract with Agalas for a low-emission IMR/survey vessel with a smart lifting arrangement, and an equipment package that can adapt to numerous market segments.

The Norwegian company most recently secured charters for two vessels with the aim of meeting the increasing demand in the subsea services market.