Reach Subsea - Earnings Release 2017

Financial report for 2Q 2017 - Positioning for growth

Positioning for growth!

Highlights from our Consolidated Financial Report for 2Q2017:

All time high activity level for Reach Subsea with six vessels in

operation at the end of Q2, and a strong order book for 3Q.

2Q EBITDA before amortization of termination fee was NOK 4.4 million

compared with NOK 12.6 mill in 2Q 2016, with the reduction largely

explained by the cost of growth activities and delayed start-up on

some projects moving revenues and profits from Q2 to Q3/Q4. EBITDA

for the first half 2017 was NOK 6.8 million (NOK 6.6 million the

same period in 2016).

The quarter is characterized by growth activities. Our fleet has

been increased by 50% through Q2 by adding two first class, modern

subsea vessels; Havila Subsea (May) and Olympic Delta (end June).

The downturn in the industry has created attractive low cost and low

risk growth opportunities.

The Group maintains a strong liquidity and equity position (62.2%),

positioning the Group to further invest in innovative technology,

such as the Surveyor, and invest in other assets to leverage our

platform for a future recovery.

Tender activity is high for work in 2017 and beyond. Outstanding

tender value is around NOK 1.7 billion, compared with NOK 1.6

billion at the end of 1Q2017.

The second quarter results will be presented Wednesday 30th August

at 14:00 CET. The presentation will be held at Arctic Securities,

Haakon VIs gate 5, Oslo. If you wish to attend, please notify on

Please see the attached link for the full report.

For further information, please contact:

Birgitte Wendelbo Johansen (CFO).

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