Q3 2025 Reach Subsea ASA Earnings Call Transcript
Key Points
- Reach Subsea ASA (FRA:4RS) achieved a significant milestone by operating the first-ever unmanned vessel in Norwegian oil and gas fields, marking a major step in the Reach Remote development.
- The company has a strong long-term outlook for the global subsea industry, supported by stable OpEx activities and sound CapEx plans.
- Tender volumes are increasing, with a notable rise in pure USV tenders, indicating growing market interest.
- Reach Subsea ASA (FRA:4RS) has a flexible fleet structure with cost-effective charter agreements, allowing for adjustments based on market conditions.
- The company has strengthened its balance sheet, with an improved equity ratio and a strong cash position, supported by a NOK 500 million bond issue.
- Third-quarter results were below expectations due to lower vessel utilization and extraordinary costs associated with the implementation and certification of Reach Remote.
- The EBIT margin decreased from 16% in Q3 2024 to 7.3% in Q3 2025, primarily due to idle time and start-up costs for Reach Remote vessels.
- Profit for the third quarter dropped significantly to NOK 34.8 million from NOK 92 million in the same quarter last year.
- Global uncertainty is affecting project timing, leading to some postponed decisions and impacting the firm backlog.
- The delivery of the newbuild vessel Viking Vigor has been postponed, although it does not affect the operational schedule.
Good morning, and welcome to our Third Quarter 2025 Webcast for Reach Subsea ASA. Our report and presentation were released this morning. And I'm Jostein Alendal, CEO, and I'm here with our new CFO, Arne Joa. I will give Arne the opportunity to introduce himself in a bit, and he will also cover our financials more in details. First, I will start with the key highlights for the quarter behind us and our view on the way forward.
And not at least, I will further explain the major step in Reach Remote development we now have achieved. By being the first ever unmanned vessel operating in Norwegian oil and gas fields, the concept has taken the big step beyond proof and ready for the next steps. More about that later. Please submit questions via the webcast player, and we will address them in the Q&A session after the presentation. Our third quarter results are below expectations and targets.
This is mainly due to two things: lower vessel utilization and extraordinary costs associated with the implementation and certification of
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