Reach Subsea 'positioning for growth'Company News // August 30, 2017
Reach Subsea in Norway says it is "positioning for growth." Announcing details of its second quarter 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 the second quarter, and a strong order book for the third quarter.
2Q EBITDA before amortization of a termination fee was NKr 4.4 million compared with NKr 12.6 million in 2Q 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.
EBITDA for the first half 2017 was NKr 6.8 million (NKr 6.6 million the same period in 2016).
Reach Subsea said the quarter was "characterized by growth activity" and said its fleet has been increased by 50 per cent 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 per cent), 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. The outstanding tender value is around NKr 1.7 billion, compared with NKr 1.6 billion at the end of 1Q2017."