Reach Subsea said it is poised to take advantage of a strengthening market and is financially well-placed to do so.
In Q3 2017 the company saw activity levels reach an all-time high with six vessels in operation. As of the end of Q3 it had 10 work-class remotely operated vehicles in operation in addition to the Surveyor Interceptor unit it co-owns with MMT in Sweden.
Q3 EBITDA before amortisation of a termination fee was Nkr18.2M (US$2.2M) compared with Nkr7.9M in Q3 2016.
The improvement was driven by increased scale, high utilisation and profitable projects.
EBITDA for the first nine months before amortisation of the termination fee was Nkr25.0M compared with Nkr14.5M for the first nine months of 2016. The improvement was driven by the same factors as in the third quarter.
The group said it maintains a strong liquidity and equity position (58.6%), positioning it to invest in innovative technology and take advantage of future recovery in the market.
Reach Subsea said tender activity is also high with an outstanding tender value of around Nkr1.9Bn, compared with Nkr1.7Bn at the end of Q2 2017.
The company said the flexibility of its cost base has greatly improved through a restructuring of its chartering arrangements, new charters at flexible terms and its ability to secure “quality people at flexible terms.”
It said it has the ability to add new spreads on flexible terms and anticipates current spreads rolling over to new, more flexible charter terms.
Reach Subsea also has a solid liquidity and equity position, with no major loan maturities in the near future.