Reach Subsea Stays in Red

Reach Subsea has widened its quarterly deficit for the period ended March 31, 2019 but still managed to stay close to prior-year comparable period despite noticeable revenue drop.

For the first quarter 2019, the Norwegian contractor booked comprehensive loss of NOK 19.7 million on revenues of NOK 67 million, versus net loss of NOK 18.6 million, on revenues of NOK 114 million in the year-ago quarter.

Pre-tax result was negative NOK 17.8 million, compared with negative NOK 18.6 million for Q1 2018.

EBITDA of NOK 13.6 million (NOK 13.2 million in Q1 2018), revenues and net result were impacted by the lack of Allseas project which hiked the revenues in Q1 2018 by 40% when compared to this year’s first quarter. However, revenue drop was offset by improved pricing and margins, and also the company’s ‘flexible business model’, Reach noted.

Reach also booked quarterly depreciation of NOK 27 million, compared to NOK 25 million same time last year.

The company reported order backlog of NOK 194 million, most of which is related to work in 2019, against NOK 147 million in Q1 2018.

Subsea World News Staff

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