Reach Subsea, offering high quality solutions and technology to clients in need of ocean data and services, has published its fourth quarter 2023 results with solid revenue and profitability growth. Revenue for the quarter grew by 45 percent to NOK 474 million, whereas EBIT grew by 130 percent to NOK 79.5 million. Revenue for the full year 2023 was NOK 1.996 million with an EBIT of 332 million which gives an EBIT margin of 17 percent.
'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 CEO of Reach Subsea, Jostein Alendal.
Reach Subsea is continuously ramping up its capabilities and capacity to be able to benefit from the strong market. With a steady focus on increasing its spreads and its service capabilities as well as introducing new technology relevant for a wide range of ocean space markets globally, the company is well positioned for the years ahead. This is also underpinned by a substantial growth in orderbook which grew by 62 percent compared to the last quarter of 2022.
Reach Subsea has during the past years increased its service deliveries to the renewable markets and global markets. The acquisition of Guardian Geomatics was an important step in obtaining access to the Australian market and world-leading survey capabilities. The Australian market also serves as an important platform for the Reach Remote.
'We are experiencing a high organic growth potential in the foundation we have set the past years. Our spreads and services are gaining a larger global footprint, and our capabilities are directly transferrable to the wider ocean space sectors. Combined with introducing new technologies to service these markets we are very optimistic for the years ahead', said Jostein Alendal.
The first two USV’s, named Reach Remote, are expected to be ready for commercial projects this year. Vessel outfitting, development of subsystems and control centers are progressing well. The testing of subsystems is starting now in February 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.' said Jostein Alendal.
Q4 2023 highlights (2022 figures in brackets):
- A record year and 4Q on all parameters driven by growth, improved pricing, and strong project execution, producing a strong ROE of 30%.
- The Board will propose a dividend per share of NOK 0.36, a doubling from last year and in line with the stated policy
- All time high turnover and profits for the full year 2023
- EBIT for 4Q2023 was NOK 79.5 million (NOK 34.6 million), while pre- tax result was NOK 81.2 million (NOK 18.9 million).
- EBIT for the full year 2023 was NOK 331.8 million (NOK 105.3 million), while pre-tax result was NOK 289.5 million (NOK 98.0 million).
- Strong outlook as evidenced by record high backlog of NOK 1.2 billion (NOK 740 million) and tender volume of NOK 8.0 billion (NOK 2.5 billion).
- After quarter end: Secured new tonnage to meet an expected strong market in 2024 and beyond across all sectors.
Source: Reach Subsea
