Reach Subsea has trimmed its loss for the first quarter, despite lower vessel utilisation in the low-season North Sea spot market.
The offshore support vessel (OSV) owner's net loss totalled NOK 18m ($2.1m) for the quarter, compared to a net loss of NOK 19m during the same period in 2018.
First-quarter revenue was NOK 67m this year, significantly down on the NOK 114m posted last year, although this figure was boosted by income from vessels that supported the Allseas project in early 2018.
"All our business in 1Q2019 was generated in the spot market, a quarter which is low season in our home market," Reach explained in its financial report on Tuesday.
The company said improved pricing and its "flexible" business model helped offset the effect of lower activity levels, compared to a year ago.
This helped operating profit climb by NOK 1m to NOK 14m for the first quarter 2019, compared to a year ago.
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"The subsea industry is still characterised by oversupply of tonnage and equipment, resulting in a market with tough competition and pressured rate levels," Reach said in its first-quarter report for 2019.
"There are some signs of improved visibility in terms of a generally higher tender activity, and the gradual occurrence of some longer-term tenders and contract awards."
As of 27 May, Reach's firm order backlog stands at NOK 194m, of which the company said the "vast majority" is related to activity in 2019.
This is an improvement compared to the backlog recorded at this point in 2018, which was NOK 147m.
Outstanding tenders are valued at around NOK 1.8bn, slightly up on the NOK 1.7bn seen 12 months ago.
Frame agreements signed in 2018 with clients such as Equinor and Wintershall Norge will benefit Reach's vessel utilisation in "the coming season", the company said.
Reach has mobilised the brand-new multi-purpose ROV support vessel Topaz Tiamat (built 2019).
Reach chartered the vessel in November from Dubai-based Topaz Energy and Marine for a firm period of two and a half years, plus three 12-month options.
The vessel will be installed with a battery pack later this year, which Reach said will reduce its fuel consumption relative to its peers.
