Norway’s Reach Subsea is seeing an increase in its order backlog after securing new contracts, contract extensions, and call-offs under existing agreements and frame contracts.
Reach Subsea reported it had secured contracts worth an estimated NOK 500 million (approximately $47 million) for 2024 and 2025, capitalizing on strong market demand.
This comes after the company reported record financial results for the first three months of 2024, with the order backlog reaching NOK 1.3 billion, a 60% increase compared to Q1 2023.
“We are capitalizing on strong market demand and are pleased to report the continued strengthening of our order backlog. It also serves as a positive market indication that our project schedule in the ocean sector extends throughout 2025, offering greater long-term visibility,” said Jostein Alendal , CEO of Reach Subsea.
This quarter, Reach Subsea performed the sea launch of the Reach Remote uncrewed surface vessel (USV) and plans to launch two more USVs this season to support various national and international projects. Although the estimated delivery of Reach Remote is slightly delayed, it is still expected to be ready for commercial projects starting in 2024.
Aside from this, the Norwegian company has also extended the contract for one of Havila Shipping’s inspection, maintenance, and repair (IMR), survey, and construction vessels, on improved terms than previously agreed. The extended charter period is for three years, until December 31, 2027, with further two annual options.