Reach Subsea — Earnings Release 2021

Aug 17, 2021

Reach Subsea ASA: Second quarter and first half 2021 results

Reach Subsea ASA: Second quarter and first half 2021 results

Haugesund, 17 August 2021: Reach Subsea ASA today published its second quarter and first half 2021 results.

Highlights (numbers in brackets are comparative figures from Q2 2020 or first half 2020):

• 2Q 2021 revenue declined 22% to NOK 170 million (NOK 217 million), primarily due to lower number of ROV days and manhours sold compared to the same period last year. First half revenue was NOK 272 million (NOK 296 million)

• 2Q 2021 EBIT was NOK 18 million (NOK 29 million), while pre-tax result was NOK 16 million (NOK 28 million). EBIT for the first six months of 2021 rose 60% to NOK 30 million (NOK 12 million), while pretax result climbed to NOK 27 million (NOK -4 million)

• Order backlog at the close of 2Q 2021 stood at NOK 253 million (NOK 290 million)

• Busy tendering activity during the quarter, good schedule for the third quarter to build upon for the upcoming 2021/22 winter season

• Launch of new innovative subsea service solution, Reach Remote project, postponed to 2023 in order to mitigate risks associated with global supply chain challenges. Significant interest from clients and potential partners across the world

• High activity in renewables segment with 33 % and 52% of project days generated from non-oil & gas clients for 2Q 2021 and year-to-date, respectively

• On track to meet the fifteen Sustainability targets set for 2021

"Today we announced the best first-half results in the company’s 13-year history, driven by continued high vessel utilization and successful project execution. Our constant focus on operational excellence and our strong HSEQ focus has proven to be a differentiating factor during the COVID-19 pandemic, as clients increasingly appreciate reliability,” said Reach Subsea’s CEO Jostein Alendal. “We are experiencing positive market development across our segments, with contract awards from significant customers such as BP in the Americas region, bringing our order backlog to NOK 253 million as per end of the second quarter. Going forward, we will make every effort to keep up the good pace by leveraging our flexible asset base, large customer portfolio, strategic partnerships and robust financial profile that enables us to develop the technologies for a low-carbon future.”

For further details, please see the attached second quarter and first half 2021 report and presentation.

A presentation of the results followed by a Q&A session will be held at Fearnley Securities’ offices in Dronning Eufemias gate 8, Oslo and through a live webcast today at 09:30 am CEST. You can follow the webcast on this direct link: https://channel.royalcast.com/landingpage/hegnarmedia/20210817_6/

If you would like to join the physical presentation in Oslo, please register your attendance in advance to bwj@reachsubsea.no.

A recorded version of the presentation will be available after the live stream is concluded. Participants will have the opportunity to submit questions online throughout the webcast session.

For further information, please contact:

Birgitte Wendelbo Johansen

Chief Financial Officer

Reach Subsea ASA

bwj@reachsubsea.no

About Reach Subsea:

The Reach Subsea ASA Group’s business concept is to offer subsea services as subcontractor and/or directly to end clients, based out of our head office in Haugesund. The core business of the Group is based on modern, high spec Work ROVs operated by highly qualified offshore personnel, and supported by onshore engineering resources. The Group’s objective is to be a preferred subsea partner and full-service provider of subsea operations for clients, among others by having focus on safety, environment, financial solidity and profitability.

www.reachsubsea.no