REACH had three vessels in operation during the
quarter; Normand Reach, Edda Fonn and Stril Explorer
as well as all six WROV-systems and offshore
personnel. Further, we provided ROV services,
personnel, tooling and engineering for Viking Neptun
operations during the quarter.
REACH had a 1Q EBITDA of NOK -5.9 million and a cash
flow from operating activities of NOK -8.8 million.
The negative result is a reflection of seasonality and
challenging market conditions, but also impacted by
transit periods and planned docking. In fact, the
majority of
the 1Q pre-tax loss was incurred in March when 2/3 of
our assets were either in transit between regions or
undergoing dry docking and maintenance.
REACH launched a new offshore personnel contracting
business, Connect Offshore, during Q1. The business
model is flexible, sourcing highly skilled offshore
personnel and hiring out on a project by project basis
to both Reach and third party customers. Connect
Offshore is off to a promising start with profitable
operations from day one.
REACH has per 31.03.16 an order book of close to NOK
90 million, most of which is related to work for 2016.
Tender activity remains high, even though there are
fewer opportunities in this challenging market.
Outstanding tender value remains at a stable level
around NOK 1.4 billion.
For further information, please contact:
Birgitte Wendelbo Johansen (CFO)