Reach Subsea earnings fall in Q2 despite record first half

Norwegian subsea services provider Reach Subsea has reported a mixed performance for the first half of 2025, with a record-breaking first six months undermined by a weaker second quarter. The company posted a notable year-on-year decline in its second-quarter operating profit, a result it attributes to lower-than-expected asset utilisation amid a cautious market.

For the three months ending June 30, the company generated revenues of NOK684 million ($65 million), an increase from NOK623 million in the second quarter of 2024. However, earnings before interest and tax (EBIT) fell to NOK91 million from NOK121 million in the prior-year period. The performance for the full first half of the year was stronger, with revenues reaching an all-time high of NOK1.38 billion and EBIT also hitting a record NOK159 million, a result the company said was, "primarily explained by the strong first quarter."

Chief Executive Jostein Alendal commented on the market conditions, stating, "Global uncertainty is influencing customer behavior and slowing some decision-making. Our second quarter is impacted by these dynamics." He added that while these patterns are likely to persist, "we believe the outlook is sound."

Despite the quarterly dip, the company highlighted progress in its technology strategy, with its first two uncrewed surface vessels, Reach Remote 1 and 2, now part of its operational fleet. Looking ahead, the company described the outlook as "sound," supported by an order backlog of NOK1.15 billion and a tender volume of NOK8 billion. Its financial position was recently bolstered by a successful NOK500 million bond placement.