Reach Subsea — Earnings Release 2019

Aug 27, 2019

Reach Subsea ASA - 2Q2019 report

Reach Subsea ASA - 2Q2019 report

Second quarter highlights:

- Revenues in the second quarter 2019 were NOK 181 mill (NOK 191 million in 2Q2018) while revenues for the first half of 2019 were NOK 248 million (NOK 306 million). The decrease is explained by a reduction in the number of marketable vessel days and ROV days.

- 2Q2019 pre tax profit of NOK 4 million was in line with the reported NOK 5 million in 2Q2018, but lower than the underlying (excl amortisation of termination fee) 2Q2018 pre-tax profit of NOK 10 million. Improved pricing and the benefit of our flexible business model only partly offset the effect of lower year-over-year activity levels.

- The order backlog of NOK 203 million and outstanding tender value of NOK 2.1 billion represents a solid increase compared to the corresponding figures of NOK 135 million and NOK 1.7 billion, respectively, a year ago.

- Topaz Tiamat performed her first projects after mobilization in 1Q2019 to the client's full satisfaction, and demonstrating 25-40% lower fuel consumption than similar sized vessels. The vessel is also among the first subsea vessels suitable to accommodate battery pack (expected to be installed later this year), contributing to a further reduction in fuel consumption and carbon footprint.

Please find the full report attached to the link in this Message.

For further information, please contact:

Jostein Alendal (CEO)

Birgitte Wendelbo Johansen (CFO)

www.reachsubsea.no