Reach Subsea pushed into new markets in the first quarter, bumped up vessel utilisation and flipped is bottom line into the black.
The Oslo-listed offshore vessel owner reported a NOK 6m ($568,050) pre-tax profit for the first three months of 2023, reversing a NOK 44m loss for the same period last year as its project backlog jumped 133% year-over-year to a record NOK 815m.
Chief executive Jostein Alendal said the results “confirms we are on a track” for growth.
“We have increased our capacity since last year, and I am happy to see that we increased our vessel utilization, which drives the margin improvement,” he said.
“During the first quarter, we have phased in several new vessels and spent time mobilizing and preparing them for the upcoming high season.
“The strong development in order backlog indicates continued strong growth, and high utilisation going forward.”
The company said it engaged in extensive engineering and planning during the quarter and began loading equipment in Bergen for Eni’s Baleine Phase 1 Project in the Ivory Coast.
Reach is involved in mooring line pre-play and hookup, which the company said positions it for future floating wind opportunities.
It also began engineering, preparation and planning for its first work in the Brazilian offshore market.
The company said it began vessel operations in Haugesund on 28 February and arrived in Rio de Janeiro on 26 March for work with Petrobras.
For the quarter, the company had 248 vessel days sold, up from 218 in 2022 and 209 in 2021.
On a percentage basis, the company had 88% utilisation for the first quarter of 2023, up from 63% in the first quarter of 2022 but down from the 96% seen in the first quarter of 2021.
During the quarter, revenue leapt to NOK 234m from NOK 128m for the same period last year, while Ebit improved from an NOK 38m loss to a NOK 8.3m loss.