Reach Subsea makes a loss - starts new businessCompany News // June 1, 2016
Reach Subsea in Norway says it made a loss in the last quarter. It had first quarter EBITDA of NKr -5.9 million and cashflow from operating activities of NKr -8.8 million. "The negative result is a reflection of seasonality and challenging market conditions, but was also impacted by transit periods and planned docking," said the company. "In fact, the majority of the first quarter pre-tax loss was incurred in March when three of our assets were either in transit between regions or undergoing drydocking and maintenance."
Reach Subsea said it has launched a new offshore personnel contracting business, Connect Offshore. The business model is flexible, sourcing skilled offshore personnel and hiring out on a project by project basis to Reach Subsea and third party customers. The company said Connect Offshore "is off to a promising start with profitable operations from day one."
Reach Subsea had an orderbook of NKr 90 million as of 31 March 2016, most of which is related to work in 2016. "Tender activity remains high, even though there are fewer opportunities in this challenging market," said the company," which had three vessels in operation during the quarter: Normand Reach, Edda Fonn and Stril Explorer as well as all six work-class ROV systems. In the quarter it also provided ROV services, personnel, tooling and engineering for operations by Viking Neptun.