Norwegian contractor Reach Subsea has booked lower profit as it saw revenues decline close to 60 percent during the second quarter of 2016.
For the quarter, Reach Subsea generated net profit of NOK 3.3 million, or NOK 0.04 per share, on revenue of NOK 89.5 million, versus net profit of NOK 9.1 million, or NOK 0.10 per share on revenue of NOK 219.4 million in the year-ago quarter.
The Oslo-listed company reported second-quarter EBITDA of NOK 12.6 million, while year-to-date EBITDA came at NOK 6.6 million (NOK 14.1 million in 1H 2015).
For the first six months of 2016 Reach recognised not loss of NOK 11.4 million, or NOK 0.15 per share, on revenue of NOK 175.5 million, against net loss of NOK 1.8 million, or NOK 0.02 per share on revenue of NOK 306 million in the first half of 2015.
According to the company, the drop in revenues compared to last year is mostly related to restructuring of the Viking Neptun charter party, where Reach is providing ROV services.
In the second quarter 2016, Reach had two vessels and all six WROV systems and offshore personnel in operation.
The company agreed on restructuring of its charter deals with Solstad Offshore and Østensjø Rederi to move forward with market-based chartering rates. As part of the restructuring Solstad Offshore and Østensjø Rederi will become new shareholders of Reach Subsea.
The company reported order book of close to NOK 75 million, most of which is related to work in the third quarter of 2016.
Subsea World News Staff