Reach Subsea (REACH) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2024, with revenue of NOK 623 million and EBIT of NOK 121 million, reflecting steady progress, increased capacity, and successful technology launches such as Reach Remote 1 and a contract with Equinor.

• Order backlog reached NOK 1.6 billion, with outstanding tender value more than doubling year-over-year to NOK 11 billion, supporting a robust outlook and future growth.

• Major milestones include the successful sea launch and operational validation of Reach Remote USVs, technology qualification with Equinor, and expansion into renewables and remote operations.

• Continued focus on sustainability, safety (zero work-related injuries), and global expansion, including the acquisition of Guardian Geomatics.

• Record revenue and EBIT for the first half of 2024, with increased global presence and technology innovation.

Financial highlights

• Q2 2024 revenue was NOK 623.1 million, up from NOK 607 million in Q2 2023 (excluding a NOK 29.8–30 million one-off asset sale in 2023).

• EBIT for Q2 2024 was NOK 121.1 million, slightly above NOK 118–119 million in Q2 2023 (excluding the one-off); net income was NOK 87.3 million.

• H1 2024 revenue reached NOK 1,198.3 million, up from NOK 870.5 million in H1 2023; EBIT for H1 2024 was NOK 149.8 million.

• Cash and cash equivalents at quarter-end were NOK 221.5–222 million, with available liquidity of NOK 251.5 million including credit facilities.

• Dividend of NOK 0.36 per share paid in Q2 2024, double last year’s amount.

Outlook and guidance

• The market outlook is extremely promising, with substantial investments anticipated in oil, renewables, and remote operations over the coming years.

• Order backlog stands at NOK 1.6 billion, with high-margin services and global projects lined up for execution in Q3 2024 and beyond.

• Continued growth, value creation, and a disciplined, shareholder-friendly approach to expansion are expected.

• Reach Remote commercialization and pilot projects are expected in 2024, with growing client interest.

• The upcoming winter season is expected to be strong due to increased global presence and active markets.