Q3 2024 Reach Subsea ASA Earnings Call Transcript
Key Points
- Reach Subsea ASA (STU:4RS) reported a revenue increase of almost 30% compared to the third quarter of last year, showcasing strong financial growth.
- The company has surpassed the full-year revenue level of 2023 within the first nine months of 2024, reaching over NOK2 billion.
- The EU Innovation Fund granted Reach Subsea ASA (STU:4RS) EUR14.3 million for scaling up its Reach Remote project, indicating strong external support and confidence in their innovation.
- The company maintains a strong order backlog and tender volume, indicating sustained demand and future business opportunities.
- Reach Subsea ASA (STU:4RS) has a solid cash position and negative net interest-bearing debt, excluding IFRS 16 charter commitments, reflecting strong financial health.
- The revenue growth is partly driven by increased reimbursable sales, which typically have lower margins, potentially impacting profitability.
- The tender volume has decreased compared to the previous quarter, although this is attributed to regular market cycles.
- Reach Remote 1 and 2 are slightly behind schedule, which could delay the introduction of new technology to the market.
- The company faces challenges in maintaining a conservative liquidity and debt strategy amid the scale-up of Reach Remote.
- There is a noted slowdown in the renewables sector, which could impact future growth opportunities in this segment.
Good morning, and welcome to our third quarter 2024 webcast for Reach Subsea ASA. Our report and presentation were released this morning. And I am Jostein Alendal, CEO, and with me is CFO Birgitte Wendelbo Johansen. I will start with the key highlights and achievements from the quarter as well as some views relating to the progress of our Reach Remote 1 and 2 USVs, and Birgitte will then cover our financials in detail. (Operator Instructions)
The financial performance of the quarter documents our continued growth with a revenue increase of almost 30% compared to third quarter last year.
That said, the revenue growth in this quarter is not only driven by high project activity, but also by increased reimbursable sales, which typically have slightly lower margins due to the lower risk profile. However, the EBIT level is above the third quarter last year, as expected. And when looking at the revenue these first 9 months, we have now passed the full year revenue level of 2023, leading above NOK2 billion. We are maintaining strong
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