Reach Subsea — Earnings Release 2018

Nov 21, 2018

Report for the third quarter 2018

Report for the third quarter 2018

Report for the third quarter 2018 - REACH SUBSEA ASA -

Highlights:

* Succesful growth: Year to date turnover was NOK 484.6 million, compared to NOK 248.3 million for the same period in 2017, with an EBITDA (before amortized termination fee) of NOK 194.3 million (NOK 25.0 million YTD 2017).

* 3Q EBITDA before amortization of termination fee was NOK 77.5 million (NOK 18.2 mill in 3Q2017), while pre-tax result was NOK 8.0 million (NOK 2.8 million).

* Reach Subsea has been awarded a Frame Agreement for Marine Subsea Services to Wintershall Norge AS. The frame agreement has a duration of 3 years + 4 yearly options, and commences in 2018.

* High activity with 8 vessel spreads in operation including full activity in Trinidad.

* Solid balance sheet maintained, positioning the Group to further invest in innovative technologies and subsea assets to leverage our platform for the expected future market recovery.

* Tender activity remains high with outstanding tender value remaining stable at around NOK 1.7 billion.

* New guidelines received during 3Q on IFRS 16 increases EBITDA, but has no effect on pre-tax result (see notes and page 7 for details).

The full report is enclosed in the link.

for further information, please contact:

Jostein Alendal, CEO

Birgitte Wendelbo Johansen, CFO

www.reachsubsea.no