Norwegian contractor Reach Subsea managed to remain in black but still has booked a decrease in profit in the fourth quarter 2015, despite higher revenues backed by increased activity levels.
In the fourth quarter 2015, Reach had four vessels in operation, opposed to one less same time last year as well as all six WROV systems and offshore personnel. This has boosted the company’s turnover by some 38 per cent year-on-year. Nevertheless, quarterly profit was decreased on much higher operating expenses. Furthermore, the reduced rate levels have brought down the EBITDA margin.
The company’s net result was NOK 2.7 million, down from NOK 23.6 million in 2014, mainly due to one-off currency gains and Surveyor AS losses in 2015.
For the quarter, Reach Subsea generated net profit of NOK 800K, or NOK 0.01 per share, on revenue of NOK 135.6 million, versus net profit of NOK 7.7 million, or NOK 0.10 per share on revenue of NOK 84.2 million in the year-ago quarter. For the year 2015, the company has booked NOK 1.4 million in profit, down from NOK 24.8 million at the end of 2014.
The company’s full-year revenue was NOK 634.4 million, versus NOK 311.2 million in 2014.
Reach Subsea reported an order book of close to NOK 160 million, most of which is related to work for 2015.