Good morning, and welcome to this presentation of the Q2 and half year of 2022 for Reach Subsea ASA. I am Jostein Alendal, the CEO of the company, and later you will meet our CFO, Birgitte Wendelbo Johansen. The Q2 and half year report was released earlier this morning together with the presentation material for this webcast. In the webcast player, you will see a button which you can click on to submit questions during and after the presentation. Birgitte and I will do our best to answer during the Q&A session at the end. As you know, Reach has evolved a lot during the last six to nine months, and we will continue also to develop in the years to come.
I'll come back to that a bit later, but let's have a look at the highlights for the Q2 and half year on slide number three. It is a pleasure to report strong results for Reach Subsea in the Q2 of 2022, and not only strong, I should say it is record strong. With revenues doubling and EBIT almost tripling compared to same quarter last year, we clearly demonstrate the strength of our business model in a positive market environment. We now see the benefit of our efforts to firm up vessel capacity, and in the Q2, the utilization was very high. The high activity was not only driven by the increased investments in the oil and gas segment, but also more projects within the segments like renewable energy.
Of course, both OCTIO and iSurvey now contributing on the top line and also with positive EBIT. Half year results are obviously influenced by the Q1 numbers with low utilization and a couple of one-off costs. That said, the general offshore market is in recovery globally, and we shall maneuver and continue to grow in this rising market, not only for the coming quarters, but for many years to come. In parallel with great operational and financial results, it is important for me to conclude that our work to transform and broaden Reach Subsea is progressing well. We have already jointly won and executed projects to get people in iSurvey this season with a route survey for Aker BP in June/July as a good example. It is also good to see that OCTIO achieved a major international breakthrough recently with a contract in Australia.
I will come back to what that will say in our expansion plans a bit later. Our goal is to operate as one Reach by next year, and based on the progress so far, we are well on track. In the bigger picture, let me again try to illustrate what we are in the start of building up, which leads me to slide number four. The strategic outcome of the OCTIO, MonViro and iSurvey acquisitions is clear. Reach Subsea has now become a complete services, including surveying technology, data management and data analytics. To put it simply, we cover now the whole subsea value chain. This means that we can offer better and more comprehensive services for our clients, and we will be able to attract more high competence talents, and also we will be able to produce even better project economics.
As a result of the acquisitions of OCTIO late in 2021 and iSurvey in the Q1 this year, we grew significantly to now 250 employees. The integration of our new colleagues and the product offering of OCTIO and iSurvey is well on track. The potential has been shown to the fullest now in this quarter. This also fits perfectly with Reach Remote, as, the in-house technology, competence and customer relations will be leveraged onto the remote platform. Equity funding and our strategic partner for the Reach Remote project is secured through the partnership with the Wilhelmsen New Energy. Our next leap in that matter comes next year when the transition to remotely controlled and unmanned operations gain speed through the launch of our first two remotely operated vessels.
The technology development and construction is on track together with our partners at Kongsberg and Massterly, and I will come back to this a bit later. Reach Subsea has now the competence, technology, capacity, financial muscle and long-lasting client relations to be a winner in the years to come and also delivering on our vision of being a world-leading provider of subsea data and solutions. First, a quick refresh. Who is buying our service now and in the future? I have tried to illustrate on slide number five. We do say that any and all offshore and subsea asset owners are our clients, and we provide services through the whole asset life cycle. From mapping and documentation before installation through inspection, maintenance and repair to the end decommissioning and removal.
We have worked for most of the major international energy companies, both for the oil and gas installations and also their offshore wind farms. The oil and gas sector is expected to increase in the short term and to remain stable for many years to come. All our services, equipment, methods and procedures are developed for the oil and gas sector, and we take the highest standards of safety with us over to the other sectors. Offshore wind is set to see enormous growth in the coming years, and we already find a good portion of work in that segment. More than merely seabed mapping before installation and regular inspection on existing wind farms. Also, cables, one of our core service business areas is a growth area.
A number of cables will be laid in the coming years and going forward, we are also an important partner here for survey, installation and maintenance. Fish farming is moving further offshore to deeper waters, yet another type of offshore installation and subsea mining will come in the future with really exciting subsea work. We should also add reservoir monitoring and especially CO2 storage as an emerging sector where OCTIO's technology and expertise is in the forefront. I say it again, the important and increasing ocean awareness around the globe. Clients in the ocean environmental surveillance segment with our future unmanned robotic marine technology. A really high-level view.
The global market for offshore and subsea services in one way or the form will be there forever and so will we, constantly challenge technical boundaries and how to perform subsea operations also forever. But back to earth. Moving to slide number six. The world map illustrates where we are located today and also new geographical markets we are targeting. We are constantly seeking new next geographical expansions. I said last quarter, most likely next steps will be Brazil and Australia. Well, with the OCTIO's newest contract, Australia became for sure. Our geographical expansion is not only for our traditional services, but in the long term also with Reach Remote as a clear part of that picture. The future robotic maritime industry will be global and so shall be. Reach Remote in all time zones in the future, so to speak.
As mentioned, our tender activity is global and very high, stretching from Australia and Brazil, with also big opportunities in the Gulf of Mexico and Mediterranean. A lot of opportunities will come and establishment in new areas will most likely be together with local partners. M&A or just building up from scratch can also be alternatives. To put this into the big picture, the context, we will continue to invest in people and robotics going forward. In Norway, we are located in Haugesund, Bergen and Oslo. With the iSurvey, we now have offices in Singapore and Aberdeen, two important hubs also for further expansion. Our guys in Houston and Trinidad also have to be mentioned, always ready for instant business.
As I said, the integration of the companies is well on track, and we are now looking very much forward to bring our joint technology and expertise out to our full network of clients worldwide. In a closer picture, as we have indicated earlier, we experience a stabilizing and improving market for subsea services globally and also a higher demand for offshore vessels. This leads me into some quick comments on our fleet on slide number seven. Our fleet for this year is shown here. Although we are moving towards marine operations by robotics, we still need manned vessels for many years to come. We will continue to have a core number of vessels in our fleet suited for our various operations.
We also expand the fleet on a project-to-project basis this season where we have used the Olympic series and Havila Phoenix in Q2 and also in Q3. Normand Reach, which is on charter with Ocean Infinity, has also gone through our P&L on a project in this Q2. Havila Subsea and the three Olympic vessels, Olympic Challenger, Olympic Artemis and Olympic Delta, is on our charter and goes through our P&L, where Havila Subsea will be with us also for at least the next couple of years. Recently, we entered into a long-term charter with Volstad for the Deep Cygnus for four plus one year, which brings me to slide number eight. The charter starts in the Q1 of next year, and we will mobilize two world-class ROVs on board.
She will, of course, be optimized for minimum fuel consumption with battery pack installation earlier in the charter. The specifications are extremely high, and she has a very good track record. I won't spend much time on this slide, but a charter of this length has two sides. Firstly, the global market for offshore vessels is tightening, and we have to maneuver in a rising market for the coming years. We have a long horizon on our core asset. Our core asset is important. Secondly, she will be in the mix with the Reach Remote for dual and simultaneous operations in the long picture, equally then important with a longer charter and control. That said, the flip side of the strong market is that the cost of vessels, fuel, personnel and offshore operations as a whole will increase steadily for a long period of time.
As I've said before, the business case for the Reach Remote and the robotic and unmanned vessels will be even better. This leads me to the next slide, number nine. We have talked a lot about Reach Remote before and in many forums, and I'm more excited than ever before. This is the future, cheaper, more safe, and with much lower CO2 emissions than our traditional vessels. Unmanned vessels alone or together with manned vessels working on all oceans, and here you can imagine Deep Cygnus side by side with a Reach Remote vessel. The impact on future offshore operations will be massive, both in terms of environmental and climate impact, as well as cost. This is a safe and sustainable solution which dramatically lowering operational cost and the environmental footprint of our operations.
There are today endless numbers of subsea operations that could and should be done with remotely operated vessels. For example, if Reach Remote USVs had been available today, around half of our work could have been done with these unmanned USVs. A very good example is the OCTIO operations, a single sensor transported to the seabed far out in the ocean. Our slogan says it all, "Go green with marine robotics." Not at least a significant reduction in cost of subsea operations leads us to expect a boom in the market for collecting data subsea, as the total cost is then becoming more and more affordable for a wider range of clients. Over to slide number 10. It is extremely good to have all the parts of the puzzle in place.
Post-pandemic effects and the current effects of war do create some challenges in the supply chains, not only for us, but for the whole world. I'm confident that we and our suppliers have this under control. During the coming winter, the steel hulls will be fabricated, and installation and testing of all technology will be done at Trosvik Yard during next year, spring and summer. We have also ordered two ROVs specially built for long endurance with Kystdesign, our local ROV manufacturer here in Haugesund, so to speak. As we have said before, Massterly, our bridge and navigator, is on track with the operational center in Horten and already in operation with the Yara Birkeland and [Furuno] with the ASKO vessels later this year. They will be well up and running and ready for our USVs next year.
We are also on track with our remote operational center in Haugesund. To summarize, we are very pleased to have this on track. Again, the future business case is getting better and better. With this, I will give the word over to Birgitte for the numbers on this quarter.
Thanks, Jostein. Good morning, everyone. Just again, a reminder before I start, if you should have any questions to the presentation, you can submit them on the webcast while we speak. Looking at slide 12, we are proud to present a record quarterly result for the Q2 of 2022. EBIT was NOK 50 million compared to NOK 18 million last year on a turnover of NOK 341 million, NOK 170 million in the Q2 last year. The main drivers for the improved results are high utilization, improved pricing environment, and addition of the new businesses, iSurvey and OCTIO. Total comprehensive income ended at NOK 41 million for the Q2 compared to NOK 16 million for the Q2 of 2021.
Please note that the OCTIO Group figures are fully consolidated into our accounts since the start of this year, while the iSurvey transaction was closed towards the end of the Q1, meaning that our P&L includes both acquisitions in the Q2 of 2022. The balance sheet as per H1 2022 is fully consolidated, showing Reach Subsea, OCTIO and iSurvey all together. For the same period last year, iSurvey and OCTIO are not part of our figures. The start of the high season has been very positive with the strong utilization of all our assets, both ROVs and vessels, as well as full utilization of our personnel. The Reach Remote project is progressing according to schedule, and in the Q2 we signed contracts with our main suppliers, as well as financing with SpareBank 1 SR-Bank and Eksfin.
Let's look into the details and what lies behind the figures on slide 13. I mentioned the strong revenue in growth, and as you can see here, the improvement is strong both in oil and gas sector as well as in renewables. The Q2 EBIT was, as mentioned, NOK 50 million compared to NOK 18 million last year. Pre-tax profit in the quarter was NOK 56 million compared to NOK 16 million in 2021. This gives year-to-date figures a turnover of NOK 470 million with an EBIT of NOK 12 million compared to NOK 272 million turnover and NOK 30 million EBIT as per H1 last year. Let's look into more details at the drivers.
The increased revenue from last year is explained by a higher number of project days sold, as well as higher pricing and revenue from the acquired businesses. On the other hand, the improved EBIT is primarily a result of high utilization and strong project execution in an improving market, as well as contribution from the acquired businesses. Our activity within the non-oil and gas segments varies over the quarters, as you've seen before. As we always intend to prioritize utilization, the Q2, our revenue was strongly driven by some projects in the oil and gas market, resulting in 31% of the turnover representing renewables and other. As you know, we have an ESG target of increasing the level of project days, which is a number related to activity more than turnover to 50%.
This is ambitious, in particular with the renewed strength in the oil and gas sector. We still aim to achieve this target within the coming 12 months. Over to slide 14. Looking at the year-on-year EBIT development from the Q2 last year to the same period this year, we see that the main drivers are project margins and utilization, which again illustrates the improved market conditions and the increased demand from our clients. Worth noticing, EBIT for the OCTIO group represented about NOK 2 million, while EBIT for the iSurvey group represented about NOK 6 million in the Q2 of 2022. As mentioned, these entities were not part of our 2021 figures.
It's worth mentioning our first landmark full-scale route survey executed by Reach iSurvey integrated spread with excellent feedback, a project that also contributed strongly to the solid project margins in the Q2. The positive contribution from our newly acquired entities, iSurvey and OCTIO, is a strong result of strong performance and also the start of the integration of the Reach Subsea group. Let's move to slide 15. Reach Subsea has quite substantial growth plans with Reach Remote. We continue to have a strong balance sheet, and we have delivered to our shareholders by paying dividend according to our policy. It's an important signal to the market that Reach intends to both grow and fulfill our dividend policy. We have a cash and working capital position of NOK 277 million and limited existing financial debt.
Remaining investment for the Reach Remote is about NOK 340 million, with expected debt financing of NOK 200 million, meaning we are well positioned for our coming investments next year. Let's move on to sustainability on slide 16. We continue to report quarterly on our sustainability targets within environments, being a responsible employer and always doing business in a responsible way. We started our full sustainability reporting to the market in 2019, partly based on the United Nations sustainability goals and also the GRI standards, which we have adjusted to fit into our business model. We have kept most of the KPIs relatively unchanged. Some adaptations to our business and various expectations, but our KPIs should be quite easy to follow and measure. Some of our ESG targets include campaigns and other actions.
A few are still orange, as you can see, as per the H1 of the year. However, we have the intention to end up with green marks on most of our boxes and then be meeting our KPIs also for this year. Unfortunately, we had one work-related injury in the Q2 and an infection resulting in some absence from work. It is, however, good to see that our colleague is now healthy, back at work, and our operations and HR team has received positive feedback on how this incident was handled together with the Norwegian Seamen's Church in Rio de Janeiro. Safety is always our utmost priority, and we are proud to have strong positive HSEQ statistics. I hand the word back to you, Jostein, for a summary.
Thank you, Birgitte, for the numbers. Let me wrap up by using this familiar last slide on number 18 as a backdrop. Reach is now a high-quality provider of subsea services covering the whole value chain, and we will be among the winners in the industry in the years to come. Value creation for all stakeholders, not at least our shareholders, is our ultimate goal. First, we are positioned in an extremely interesting market. As mentioned, oil and gas activity is on the rise and will stay high for a long time. In addition comes a range of new sectors that need advanced subsea services. Green energy is the clearest example. Offshore fish farming and seabed mining are others. Very, very interesting market opportunities. Reach Subsea is perfectly positioned to be a winner.
Our reputation among clients and employees and potential new employees is high after more than 10 years of spotless execution. It has also given us an invaluable global customer network, and we have always focused on utilizing the latest technology, and we are in the forefront when it comes to robotization and unmanned operations. The advantages are enormous, with low cost and low or zero emissions. The first two USV units are just the start of this journey. Profitable growth is our mantra, which means that we have a robust financial profile, allowing the right long-term investments. With Wilhelmsen as a new strategic partner, together with our existing solid shareholders, we can create value for all our stakeholders.
This also means that we will continue to look at M&A opportunities and cooperation partners in other geographical areas that will add value to our business, not only to fit our expertise and operations today, but for sure, also fit our robotic future. All in all, the coming quarters and years are going to be extremely exciting, and Reach is in the middle of the sweet spot with the right technology, competence, capacities and customer networks. That concludes our presentation, and we can now go over to the Q&A session. Please continue to submit questions in the webcast player. We are back to answer in a few seconds.
Yeah. Let me see if there's any questions. There's a question for you, Jostein. Are there any plans for vessel fleet expansion for the next year?
Yes. Vessel fleet. As I said, we are working on the vessel fleet every year and constantly. So we have some interesting cases. But all I can say now is that news will follow in the near future.
Yeah. There are a few. There's a question about the order book and the market and the activity this fall. As we have disclosed, we have an order book figure as per today of NOK 350 million, which is a little higher than the same period, the same time last year. Most of that activity well is actually for activity for projects in this Q3, a little bit into the Q4. Unfortunately, we don't guide on the turnover for the rest of the year. What we can say is that the activity is high, at least for the time being, and that the market is looking quite good.
There's a question about our growth plans, for the coming years, organic or with mergers and acquisitions. Jostein, you want to say something about that?
Yeah. Definitely, yeah, we're gonna grow with the market and, I think I've mentioned it several times that we have a long period of better market conditions in front of us, so a long period. We're gonna definitely grow organic, but also M&A opportunities, as we have shown earlier this year. We wanna continue on that path. News will follow in that matter as well.
Yeah. Finally, there's one last question regarding the Reach Remote. Are there any risks for increased prices due to the war and the commodity price situation in Europe, or have you secured most of the deliveries for the Reach Remote? Well, we have contracts with Kongsberg and Kystdesign, where most prices are fixed. I think the risk is quite limited on our side. I don't know, Jostein, if you have any more comments to that.
No, I think I also mentioned it in the presentation that I'm comfortable with the suppliers and the control. You never know. Well, there are some things happening in the world, but we do follow this closely, so.
Yeah, that was the last question. Probably everything else was crystal clear, so that's good. Well, yeah, I guess we should just say thank you for the time and welcome back in the next quarter, which is in November.