Good morning and welcome to this presentation of the 3rd quarter results for the Subsea ASR. The report on NAMBOS was released earlier this morning. So some of you may already have seen that the Q3 was very strong and we are really excited to be able to share some more details with you. I'm Jussin Ondron, the CEO of the company and with me is CFO, Birgit Wendelboe Hanssen. Which we will go through the good numbers in a bit.
And at the end, we will do our best to answer any questions you might have. So please submit questions through the webcast player during and after the presentation. As you might have noticed, Reach has evolved a lot during this year, which the numbers and the results clearly shows. We will continue to grow and develop the company also in the years to come, but now in a rising market. Exciting times.
So you could say that 2022 is one step up towards our even bigger goals for the future. I will come back to this later, but let's have a look at the highlights for this Q3. And move to slide number 3. As I alluded to in the intro, we continued the Q3 in the way we ended the 2nd, with record strong financials driven by very high activity. And our revenues grew 64% and operating Profit increased by 150% compared to same period last year.
But as you know, Safety at sea is extremely important for us, and I'm happy to report 0 incidents during also this hectic quarter. All thread to our people offshore and onshore. The market outlook is very strong, both in short and long term, and the visibility is improving accordingly. And we have signed some very important contracts during the Q3. We have, for example, into a contract bringing us to Brazil for the first time and including contracts in Europe.
We have received awards for more than NOK 200,000,000 already for next year, which is a clear sign of the improved market conditions. We continue to secure vessel capacity and have signed a 4 year contract on a great vessel called Deepsugnes. She will be mobilized in the Q1 of next year. And that said, it is important for us to balance our core Vessel fleet also in the coming years, not only adjusted to the market, but also in combination with our upcoming unmanned Concept Reach Remote. And I'm happy to say that Reach Remote is on track for delivery in 2023, and I will come back to that later.
Finally, our newly acquired companies, Oktyu and Hyservi are performing great and working really well with the rest of the Reach family. For the viewers and those who need a reminder, let me take some minutes and say a few words about our company and what we do, which leads me to slide number 4. In short, we are a subsea service company with a constant drive to challenge technical Boundaries and how we do things, we look at subsea and marine operations as well as we are still in the pioneering times. The last subsea sensor has not been invented yet. A new technology constantly brings fantastic opportunities.
But at the same time, as we are enjoying this, we have a solid focus on business. I say this often, it's good to have high future goals, but be sure to make money on the way there. Our financial figures over the years confirm that we have a very good balance between long term goals and the day to day business. We are today 250 employees located in 4 countries, plus we are doing operations in a number of regions. Equipment wise, we have 10 world class OEs and 2 specially built high speed survey OEs.
And this is subsea robotics at the finest. A good balance there between equipment and people and a solid foundation for further expansions. This year, we have 4 vessels on full time charter, but we also take in additional vessels on a project to project basis. Then we're happy to reach remote U. S.
Visa order, that's unmanned surface vehicles. This is marine robotics at the finest. As a company, we have now built over 10 years of subsea experience and with a perfect reputation in terms of reliability, safety and environment. We also have a very strong economic balance sheet, especially following strong results over the past couple of years and the capital injection from Wilhelmsen earlier this year. Gregita will, of course, go more into details in a bit.
But no matter market conditions, technology and other factors, experienced staff, our business and good systems, It's absolutely necessary to be a preferred partner like Reach. And we really have all that in place. But rest assured, although we drive technology and target growth, we put shareholder values first, and we will only seek profitable growth. This leads me to slide number 5. We offer a wide spectrum of subsidy services, which is albeit in formula when it comes to utilization and profit.
I won't go into details about our services, but we do say that Any and all offshore and subsea asset owners are our clients, and we provide services through the whole asset lifecycle. For mapping and documentation before installation, pre inspection, maintenance and repair and to the end, decommissioning and removal. Our expertise lays in the planning of complete offshore operations, choosing the right tubes for the job and in between indent some new ones, but also putting the right competence and teams together. Whether it is an old platform, offshore wind farm, subsea template, pipeline or power cable, They all require the same subsea services in various forms. Read Subsea has now become a complete provider of subsea services, including also surveying technology, data management and data analytics.
To put it simply, we cover the whole subsea value chain. We have the competence, technology and capacity and long lasting client relations to be Avindor in the years to come. And for sure, deliver on our vision of being a world leading provider of subsea data and solutions to our clients. So who is buying our services? Now and into the future, I have tried to illustrate on slide number 6.
Let me show you this well known slide to underscore that all the major players across All segments of the subsea industry are clients of REACH. We have a strong foothold in the oil and gas sector, which is now experiencing Tremendous activity, as you know. In addition, offshore wind, offshore cables and other emerging sectors are on the rise. Offshore wind is set to see enormous growth in the coming years, and we already find a good portion of work in that segment. Important early seabed mapping before installation and regular inspections on existing wind farms.
Also cables, one of iService core business areas, is another growth area. New rules of tables will be laid in the coming years and going forward. We are also here an important partner for survey, installation and maintenance. As everything we do is develop for the oil and gas industry. Safety and quality is absolutely top notch and plug and play for the other sectors.
Let me also add CO2 storage as an emerging market. Octio Technology and expertise is in the forefront when it comes to reservoir monitoring in a cost efficient way. And just to elaborate a bit on Octu, which leads me to slide number 7. I'm really excited about this company that we acquired in December last year. Of the OSA company with unique technology for monitoring of seabed and gas reservoirs.
It is very cost efficient and not at least very environmentally friendly compared to traditional 4 d seismic. And also the Reach Remote System will be perfect for deploying the OcTIO sensors on the seabed. So OcTIO gives this subsidy a sparstech into the carbon capture and storage segment. The first contracts for commercial carbon storage in the North Sea are signed and the OXO technology is perfectly fit for the hugely important monitoring of these storages. Again, very cost efficient and flexible.
The technology complements or replace conventional 4 d seismic at a fraction of the price and delivery time. But best of all, this passive monitoring technology to offer us an alternative with no impact on marine life. So the Optios technology is proven and It has been used by Equinor over the years on the Usberg, Aasta Hansteen, Hol and Midgar fields. And it has been used on the 2 CO2 storage projects in Norway on the Slapna and Snorviet fields. As a part of each complete offering, Oktio will be a great and profitable success in the future.
Not only here in the North Sea but globally, which leads me to slide number 8. From our home market in the North Sea, we are expanding globally. Australia became a new market for us earlier this summer when we signed a contract for a large job for Oktio. In Q3, we also announced a very large contract in Brazil with a strategic cooperation with 1 of the established players down there. These are examples on how we will work going forward, leverage on our technology experience and partners and also our customer networks.
In a couple of minutes, I will talk a bit more about so remote, but what I can say you already know is that this remote will be a key for continued international expansion for REACH. The future for robotic marketing industry will be global and so shall we. Reach Remote will be an extremely attractive platform on the global scene, and we expect to be among the global leaders in this marketing robotics together with our partners. That said, our tender activity is also global and very high at the moment, stretching from Australia to Brazil with also big opportunities in the Gulf of Mexico and Mediterranean. A lot of opportunities will come and establishment in new areas We'll most likely be together with local partners, but M and A or just building up from scratch can also be alternatives.
This leads me to a small glimpse on the strategic growth transitions we have made this year on slide number 9. It might be a repetition for many, but a good thing can't be told too often through the acquisition of Isover and Octium and Viro. We are no complete to provide all subsea services, including survey and technology and data management and analysis. It is great to see that the acquired companies are working really well with the rest of These are working really well with the rest of fleet and we are already able to take out the benefits of the cooperation, for example, 3 joint projects, win and deliveries, as the Lundbus for this season shows. 3rd off will be Lemsen as a new core owner.
We have also secured funding for the Reach remote project and having an attractive industrial partner with great competence and mutual ambitions. Finally, the partnership with Kongstag and Marstal is essential when it comes to bringing comfort to the new marine robotic technology. We are talking of regional industry building here. Execution of this strategy is well on track, and we are well positioned to leverage on a strong market going forward. And as I said, we will continue to bring cutting edge technology to the market.
This brings me to slide number 10. And this is a favorite topic, the marine robotics. And this will be a game changer for the subsea industry. And there is no doubt the future is unmanned also at sea. Our project is on track for launch in 2023 and the steel cutting for the hubs has already started.
We are looking forward to offer this to our clients. We are waiting this eagerly and we experience an accelerating tension around the world. Benefits are obvious. The OpEx goes down 65%. Emission as well, down with 90%.
And of course, CapEx is much lower than VESSONS. In the current market environment with increased demand and higher cost of land vessels The Reach Remote business case with these savings is even better than before. The time to market is very short. If the reach remote U. S.
Seas had been available today, around half of our work could have been done with these unmanned vessels. This brings me further to Slide number 11. To put it simply, the unmanned vessels transport the subsea equipment out on-site and act as a powerbank Data Center and the communication module. The market for combined marine and subsea robotics will be endless as collecting data and information will be more affordable for a wider range of clients. And as I said before, this is just the start of a really exciting journey for us.
We have a clear ambition and goal to be among the top 5 global companies when it comes to marine robotics. It is extremely good to have all the parts of the personnel in place. But I have to mention Both pandemic effects and the current effects of war do create some challenges also for us, but 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 the Komspa technology will be done at Hruswick yard during next year and spring and summer. We are also ready to specially build ROVs for long endurance with just design of our local ROV manufacturer, so to speak, here in Rygesund.
As we have said before, masterly, our bridge and navigator, is on track with our operational center in Houghton and are already in operation with Jarabergduland and further with the Asco vessels later. Today we will be well up and running and ready for our USVs next year. Finally, We are also on track with our remote operational center here in Housen. So to summarize, One thing is the exciting new technology. The business case do indeed look better every today.
With this optimistic note, please let me hand over the world to Birgiten. She will go through Details about our solid figures.
Thanks, Since your presentation, you can submit them on the webcast while we speak. Looking at Slide 12, We're proud to present another strong quarter result for the Q3 of 2022 as well as year to date. EBIT was NOK 58,000,000 compared to NOK 23,000,000 last year on a turnover of NOK 365,000,000, a growth of 63% compared to the SEK 224,000,000 in the Q3 last year. The main drivers for the improved results are high utilization, Improved pricing environments and addition of the new businesses, iSurvey and the Octo Group. Total comprehensive income ended at NOK 52,000,000 for the Q3 compared to NOK 44,000,000 for the Q3 of 2021.
Please note that the Oksut Group figures are fully consolidated into our accounts since the start of this year, while the Isobel transaction was closed towards the end of the Q1, meaning that our P and L includes both acquisitions as from the Q2 of 2022. The balance sheet as per quarter end is fully consolidated, showing Reach, Octo and iSurvey altogether. And for the same period last year, I survey and OXXO are not part of our figures. Our peak season was characterized by high activity, High demand for all of our services with a strong utilization of all our assets, both RVs and vessels, as well as full utilization for equipment and personnel. So let's look into details and what lies behind the figures on Slide 13.
As mentioned, revenue in the 3rd quarter increased by 63% compared to 3Q last year to SEK 365,000,000. And as you can see on the left hand side, The strong increase in the oil and gas market was the main contributor to our high number of project days sold with profitable margins in all segments. The 3rd quarter EBIT was NOK 58,000,000 compared to NOK 23,000,000 last year. And the pretax profit in the quarter was NOK 67,000,000 compared to NOK 23,000,000 in 2021. This gives year to date figures Turnover of SEK 835,000,000, which is close to 70% higher than the year to date turnover last year of of NOK 495,000,000 and even quite much higher than the full year turnover last year of NOK 635,000,000.
Year to date EBIT was SEK 71,000,000 compared to SEK 53,000,000 last year. So let's look a little bit more into the detail 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 also revenue from the acquired businesses. And 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. You might read more about the details in the full report.
So let's move to Slide 14, please. Looking at the year on year EBIT development From the Q3 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 increased demand from our clients. EBIT for the Oksut Group represented about SEK 5,300,000, while EBIT for Isobel Group represented about SEK 3,800,000 in the Q3 of 2022 and as mentioned, these entities were not part of our 2021 figures. The positive contribution from our newly acquired entities, This ISAV in Octio is a result of strong performance and also the start of performing integrated projects within the Reach Subsea Group. Let's move to Slide 15, please.
Reach Upcy had a sustainable growth, Balancing cash and working capital and debts with a robust equity level. At the same time, we have delivered to our shareholders by paying dividend according to our policy. And as many of you know from our previous presentations, Our growth plans are still quite substantial, especially with the USB project, the rich remote, as Jochen talked about. We have a cash working capital position of about NOK 325,000,000 and limited existing financial debts. The remaining investment for the Reach Remote is about NOK 320,000,000 with expected debt financing of NOK 200,000,000, meaning we are well positioned for the coming investments next year.
So let's have a look into the growth development on Slide 16. We have included a new slide this quarter to illustrate how our activity has grown based on the ROV Investor Days, which are the two elements contributing the most to our turnover. Remember that the vessel commitment is our most expensive tool in the toolbox and hence our utmost priority when it comes to utilization. In addition to sold ROV and vessel days as well as the utilization, Revenue and profits strongly depends on the complexity of the projects and also the seasonality. In addition, we now have the contributions from IsoVE and OXEO, which is not reflected in these figures.
Our peak season having our main market of operations in Europe and the North Sea is typically the 2nd and the third quarter followed by a 4th That might somewhat be a joker depending on weather and demand from our clients. The Q1 is known to be harsh, which is why we always try to seek other markets such as the Mediterranean, Trinidad, Brazil, etcetera. And as you can see above on our vessel Vessel and ROV utilization has been really strong in the peak season this year. So let's transfer this into revenue and EBIT on the next slide, Slide 17. As mentioned, REIT had a positive development in utilization of profit margins the last couple of years, which is illustrated in these two graphs.
Again, as mentioned on my previous slide, there's a typical dip in Q1, which can be seen clearly on the graph to the right with an improvement in the second and the third quarter. An important detail, we do not adjust or accrue our vessel cost according to activity as we, according to IFRS used a linear depreciation on our vessel commitment. This has a reinforced effect in the quarters with lower activity as our budgets Have utilization adjusted rates based on expected seasonal activity. Let's move to sustainability on Slide 18. Wixdubsee has reported on our sustainability goals since 2019, and you can find all the reports on our webpage.
Our ESG reporting is a combination of focus on environment, being a responsible employer and doing business in a responsible way all over the world. In the full report on our web pages, you can read more about how our report complies with the United Nations Sustainability Goals and also the GRI standards. We have kept most of the KPIs relatively unchanged, some adaptions to our business and various expectations. Our KPIs should be quite easy to follow and measure to be prepared for taxation and audits. As some of our ESG targets includes campaigns and other actions, a few are still orange as for the 1st 9 months of the year, as you can see.
However, we had the intention to end up with a green mark 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, an infection resulting in absence. It is, however, good to see that our colleague is It's healthy, back at work and that our operations and HR teams have received positive feedback on how this incident was handled together with the Norwegian Seafarer's Church in Rio de Janeiro. Safety is always our Outmost priority and we are proud to have a strong positive HCQ statistics. Then I hand the word back to you, Justein, for a summary.
Thank you, Birgitte. Let me wrap up by using the familiar last slide number 20, as a backdrop. Litch is now a complete provider of Subsea Services and we have taken Big steps this year in broadening our offering and creating a platform for further and continued profitable and strong growth. Rich is a leading player when it comes to subsea robotics of the industry and I'm Happy to say that we are in a great position to take a lead in the future of marine robotics. We operate in a great market, still pioneering time.
And we are delivering really strong results, mainly driven by our focus on Also, day to day business with also a broad spectrum of services and with a broad spectrum of clients around the world. Our best Financial profile will also allow the right long term investments at the right moments, of course. And even though we have delivered on our M and A ambitions the last 12 months. We continue to look at acquisitions, opportunities and cooperation partners in other geographical areas. That will add value to our business, not only adding expertise for our current operations, but for sure for our robotic future.
So I'm looking very much forward to the coming quarters and years. We have had a great development this year. And as I said in the start, we will continue to grow and develop the company also in the years to come, but now in the rising market, really exciting the coming years. And by that, let's wrap up the presentation and move over to answering your questions. Please continue to submit questions in the webcast player.
We are back to answer in a few seconds.
Yeah. Let me see there is a few questions that have come in Throughout the webcast, you can still ask questions while we answer the few questions that have
come in so far.
The first question is, do you expect to have the same fleet next year as you've had up until today? Jussi, maybe you could answer that?
Yes. As I showed you, we We had 4 vessels on full time charter this year and we're going to have the same Size in fleet next year, we might expand given the market situation, of course, but that's the plan to have the same core for fleet, the coming
years.
Yes. Good. That's another one. Can you say something regarding revenue in Q4? And is the market still tight And contracts are and will be good paid.
Well, we cannot comment or guide on Revenue on results, but
as we have described in the report, the activity is expected to be quite good in the Q4, Even though a few of the vessels will be phased out as the Viking Neptune and the Olympic Challenger, but Delta, Hermes and Avola Subsea,
they are expected to have a good activity and also in Isovia and the Octave
To have a good activity and also in Isobel and the Oc2 business, we see quite good activity. But of course, the 4th Quarter is always a little slower than the second and the third quarter as described in the presentation.
There's a question about growth. Are you planning more growth in new locations or in existing regions? I guess you can say 2 words about that, Usdin?
Yes. And we're going to go not only in our home market here in the North Sea, but definitely globally, as I I showed you we have the goal of being in every time zones, so to speak. So yes, the ambitions are there.
Good. That's all the questions We see that we received. It seems the message has been crystal clear. And if you should have any questions Afterwards, feel free to send us an email and we will try to respond