Reach Subsea (REACH) Q3 2024 earnings summary

Executive summary

• Achieved nearly 30% revenue growth year-over-year in Q3 2024, with revenue of NOK 835 million and surpassing NOK 2 billion YTD, driven by global operations and successful project execution.

• Strong fleet utilization, high project activity, and expansion in both traditional and remote subsea services, with most vessels active and mobilized for value-added sales.

• Order backlog stands at NOK 1.5 billion, with a tender volume of NOK 8.5 billion, supporting a positive outlook.

• Reach Remote 1 and 2 USVs progressing through sea trials, with significant industry and EU support, including a EUR 14.3 million EU Innovation Fund grant.

• Continued focus on organic growth, sustainability, and technological innovation, with M&A deprioritized for the coming year.

Financial highlights

• Q3 2024 revenue: NOK 835 million (up from NOK 651 million in Q3 2023); YTD revenue: NOK 2 billion (up from NOK 1.5 billion YTD 2023).

• EBIT for Q3 2024: NOK 134.1 million (NOK 112.4 million in Q3 2023); pre-tax profit: NOK 115 million (NOK 92.3 million in Q3 2023); YTD EBIT: NOK 284 million.

• Cash and cash equivalents at quarter end: NOK 259.2 million (NOK 136.6 million in Q3 2023); net interest-bearing debt (excl. IFRS 16): negative NOK 111 million.

• Revenue has increased by over 140% in the last two years, now exceeding NOK 2.5 billion on a rolling 12-month basis.

• Equity ratio: 30.6% (31.4% in Q3 2023); equity share around 30% of total balance sheet.

Outlook and guidance

• High activity expected in Q4 and into 2025, with nearly all vessels active and a strong project pipeline.

• Revenue target for the next 2–3 years is NOK 3–4 billion, with current fleet and equipment base supporting further growth.

• No signs of slowdown in subsea or oil and gas sectors; renewables sector facing some challenges but remains a focus for diversification.

• Tender volume fluctuations are cyclical, not indicative of market weakness.

• Reach Remote commercialization in 2025 expected to drive growth and margin expansion.