Q2 2026 Reach Subsea ASA Earnings Call

August 18, 2026

Speaker #1: Good morning, and welcome to REACH SUBSEA's second quarter 2026 webcast. Our report and presentation were released this morning. I am Justin Alndal, CEO, and I am joined by our CFO, Johan.

Jostein Alendal: Good morning, and welcome to Reach Subsea Q2 2026 webcast. Our report and presentation were released this morning. I am Jostein Alendal, CEO, and joined by our CFO, Arne Joa. The Q2 has been good, with high operational activity and continued progress in the development of Reach Remote. We delivered strong operational performance while continuing to build the foundation for future growth. Arne will take you through the financial details in a bit, and later in the presentation, I will discuss both our outlook and the progress of Reach Remote and the carve-out process. Please submit the questions via the webcast player, and we will address them in the Q&A session after the presentation. The Q2 was marked by high activity levels and solid operational execution across the business. Compared to Q1, operational activity and project delivery increased significantly.

Speaker #1: The second quarter has been good, with high operational activity and continued progress in the development of REACH Remote. We delivered strong operational performance while continuing to build the foundation for future growth.

Speaker #1: Arne will take you through the financial details in a bit, and later in the presentation I will discuss both our outlook and the progress of REACH Remote, as well as the carve-out process.

Speaker #1: Please submit questions via the webcast player, and we will address them in the Q&A session after the presentation. The second quarter was marked by high activity levels and solid operational execution across the business.

Jostein Alendal: The Q2 was marked by high activity levels and solid operational execution across the business. Compared to Q1, operational activity and project delivery increased significantly. The increase in margins is reflecting our focus on efficiency, execution, and value creation through well-delivered lump sum and technology-enabled contracts. While we would prefer a more balanced activity level between quarters, the reality is that project timing this year has resulted in a more uneven distribution. R

Speaker #1: Compared to the first quarter, operational activity and project delivery increased significantly. The increase in margins reflects our focus on efficiency, execution, and value creation through well-delivered lump sum and technology-enabled contracts.

Jostein Alendal: The increase in margins is reflecting our focus on efficiency, execution, and value creation through well-delivered lump sum and technology-enabled contracts. While we would prefer a more balanced activity level between quarters, the reality is that project timing this year has resulted in a more uneven distribution. Reach Remote achieved further operational milestones and continued commercial deployment with existing and new clients. We have now built a significant operational track record across Reach Remote 1 and 2, providing valuable experience and validation of the operating model. Reach Remote has matured into a proven and scalable business platform with proprietary technology supported by expanding client adoption. During the quarter, the carve-out project was formally launched with legal, financial, and strategic advisors engaged. The process is progressing according to plan and continues to attract strong interest from a broad range of industry parties.

Speaker #1: While we would prefer a more balanced activity level between quarters, the reality is that project timing this year has resulted in a more uneven distribution.

Speaker #1: REACH Remote achieved further operational milestones and continued commercial deployment with existing and new clients. We have now built a significant operational track record across REACH Remote 1 and 2, providing valuable experience and validation of the operating model.

Jostein Alendal: each Remote achieved further operational milestones and continued commercial deployment with existing and new clients. We have now built a significant operational track record across Reach Remote 1 and 2, providing valuable experience and validation of the operating model. Reach Remote has matured into a proven and scalable business platform with proprietary technology supported by expanding client adoption. During the quarter, the carve-out project was formally launched with legal, financial, and strategic advisors engaged.

Speaker #1: REACH Remote has matured into a proven and scalable business platform, with proprietary technology supported by expanding client adoption. During the quarter, the carve-out project was formally launched, with legal, financial, and strategic advisors engaged.

Speaker #1: The process is progressing according to plan and continues to attract strong interest from a broad range of industry parties. With that backdrop, let's look at how REACH is positioned for both near-term opportunities and long-term growth.

Jostein Alendal: The process is progressing according to plan and continues to attract strong interest from a broad range of industry parties. With that backdrop, let's look at how Reach is positioned for both near-term opportunities and long-term growth. Before going into the fleet development and Reach Remote, it is worth taking a step back to look at what Reach Subsea actually do. At our core, we provide subsea services throughout the entire life cycle of offshore assets and infrastructure.

Jostein Alendal: With that backdrop, let's look at how Reach is positioned for both near-term opportunities and long-term growth. Before going into the fleet development and Reach Remote, it is worth taking a step back to look at what Reach Subsea actually do. At our core, we provide subsea services throughout the entire life cycle of offshore assets and infrastructure. We support our clients from early concept and design through installation, inspection, maintenance, and repair, and ultimately decommissioning. Our capabilities span traditional subsea services, survey, and monitoring, combining offshore execution with technology and data-driven solutions. While oil and gas remains an important market, we also support offshore wind, offshore cables, and other emerging ocean industries. What differentiate Reach is our ability to combine engineering expertise, offshore operations, and technology to deliver efficient solutions across multiple sectors.

Speaker #1: And before going into the fleet development and REACH Remote, it is worth taking a step back to look at what REACH SUBSEA actually does.

Speaker #1: At our core, we provide subsea services throughout the entire lifecycle of offshore assets and infrastructure. We support our clients from early concept and design, through installation, inspection, maintenance, and repair, and ultimately, decommissioning.

Jostein Alendal: We support our clients from early concept and design through installation, inspection, maintenance, and repair, and ultimately decommissioning. Our capabilities span traditional subsea services, survey, and monitoring, combining offshore execution with technology and data-driven solutions. While oil and gas remains an important market, we also support offshore wind, offshore cables, and other emerging ocean industries. What differentiate Reach is our ability to combine engineering expertise, offshore operations, and technology to deliver efficient solutions across multiple sectors.

Speaker #1: Our capabilities span traditional subsea services, survey, and monitoring, combining offshore execution with technology and data-driven solutions. While oil and gas remains an important market, we also support offshore wind, offshore cables, and other emerging ocean industries.

Speaker #1: What differentiates REACH is our ability to combine engineering expertise offshore, operations, and technology to deliver efficient solutions across multiple sectors. This operational foundation has also been the basis for the development of REACH Remote.

Jostein Alendal: This operational foundation has also been the basis for the development of Reach Remote, which has been built from real project experience and client needs. With that context, let's look at how we are developing the fleet to support both today's operations and tomorrow's opportunities. Looking at our fleet towards 2030, we continue to maintain a combination of owned assets and charter arrangements that provides both visibility and flexibility. Subsequent to the quarter, we announced the sale of Viking Reach, supporting our ambition to build a younger, more efficient, and future-oriented fleet. At the same time, Viking Vigor, the new build 76, and the future Reach Remote vessels will provide additional capacity, capability, and strategic options as we continue to evolve the fleet. Over the coming months, several important fleet decisions will need to be made as new assets enter service and existing charter commitments mature.

Speaker #1: Which has been built from real project experience and client needs. With that context, let's look at how we are developing the fleet to support both today's operations and tomorrow's opportunities.

Speaker #1: Looking at our fleet towards 2030, we continue to maintain a combination of owned assets and charter arrangements that provide both visibility and flexibility. Subsequent to the quarter, we announced the sale of Viking REACH, supporting our ambition to build a younger, more efficient, and future-oriented fleet.

Speaker #1: At the same time, Viking Vigo, the newly built 76, and future REACH Remote vessels will provide additional capacity, capability, and strategic options as we continue to evolve the fleet.

Jostein Alendal: At the same time, Viking Vigor, the new build 76, and the future Reach Remote vessels will provide additional capacity, capability, and strategic options as we continue to evolve the fleet. Over the coming months, several important fleet decisions will need to be made as new assets enter service and existing charter commitments mature. This gives us the flexibility to either expand capacity where market opportunities support growth or renew the fleet through the introduction of more modern and capable vessels.

Speaker #1: Over the coming months, several important fleet decisions will need to be made, as new assets enter service and existing charter commitments mature. This gives us the flexibility to either expand capacity where market opportunities support growth or renew the fleet through the introduction of more modern and capable vessels.

Jostein Alendal: This gives us the flexibility to either expand capacity where market opportunities support growth or renew the fleet through the introduction of more modern and capable vessels. These decisions will be guided by market development, utilization levels, and where we see the strongest opportunities for long-term value creation. Our order backlog continues to provide a reasonable level of visibility and has been further strengthened by the recent award of a 2 plus 1-year IMR contract. The contract also adds Normand Jarstein to our project charter fleet. Tender activity remains relatively stable with an increasing share of opportunities requesting remote and uncrewed capabilities. Together, this position us to build a modern fleet that combines conventional offshore execution with the gradual introduction of remote and autonomous operations as we move towards 2030. During the quarter, we continued to expand both the operational footprint and maturity of the REACH Remote platform.

Speaker #1: These decisions will be guided by market development, utilization levels, and where we see the strongest opportunities for long-term value creation. Our order backlog continues to provide a reasonable level of visibility, and has been further strengthened by the recent award of a 2+1 year IMR contract.

Jostein Alendal: These decisions will be guided by market development, utilization levels, and where we see the strongest opportunities for long-term value creation. Our order backlog continues to provide a reasonable level of visibility and has been further strengthened by the recent award of a 2 plus 1-year IMR contract. The contract also adds Normand Jarstein to our project charter fleet. Tender activity remains relatively stable with an increasing share of opportunities requesting remote and uncrewed capabilities.

Speaker #1: The contract also adds Norman Yarstein to our project charter fleet. Tender activity remains relatively stable, with an increasing share of opportunities requesting remote and uncrewed capabilities.

Speaker #1: Together, this positions us to build a modern fleet that combines conventional offshore execution with a gradual introduction of remote and autonomous operations, as we move towards 2030.

Jostein Alendal: Together, this position us to build a modern fleet that combines conventional offshore execution with the gradual introduction of remote and autonomous operations as we move towards 2030. During the quarter, we continued to expand both the operational footprint and maturity of the REACH Remote platform. REACH Remote 1 became the first vessel to operate in the UK sector while being remotely controlled from Norway, marking another important milestone for the program. We also received DNV's world-first notation for autonomously and remotely operated ships, providing formal recognition of the systems, procedures, and operational framework supporting remote vessel operation.

Speaker #1: During the quarter, we continued to expand both the operational footprint and maturity of the REACH Remote platform. REACH Remote 1 became the first vessel to operate in the UK sector while being remotely controlled from Norway.

Jostein Alendal: REACH Remote 1 became the first vessel to operate in the UK sector while being remotely controlled from Norway, marking another important milestone for the program. We also received DNV's world-first notation for autonomously and remotely operated ships, providing formal recognition of the systems, procedures, and operational framework supporting remote vessel operation. At the same time, we have successfully completed multiple operations within 500-meter safety zones around offshore installations for several clients. Regulatory approvals are now in place across Norway, the UK, and Australia, allowing us to operate across an expanding geographic footprint. Perhaps most importantly, REACH Remote 1 and 2 have now accumulated approximately 750 uncrewed operational days, providing valuable operational experience that continues to strengthen both the platform and the organization. Taken together, these milestones demonstrate that REACH Remote is no longer a concept or a pilot program.

Speaker #1: Marking another important milestone for the program, we also received DNV's world-first notation for autonomously and remotely operated ships, providing formal recognition of the systems, procedures, and operational framework.

Speaker #1: Supporting remote vessel operation. At the same time, we have successfully completed multiple operations within 500-meter safety zones, around offshore installations, for several clients.

Jostein Alendal: At the same time, we have successfully completed multiple operations within 500-meter safety zones around offshore installations for several clients. Regulatory approvals are now in place across Norway, the UK, and Australia, allowing us to operate across an expanding geographic footprint. Perhaps most importantly, REACH Remote 1 and 2 have now accumulated approximately 750 uncrewed operational days, providing valuable operational experience that continues to strengthen both the platform and the organization. Taken together, these milestones demonstrate that REACH Remote is no longer a concept or a pilot program.

Speaker #1: Regulatory approvals are now in place across Norway, the UK, and Australia, allowing us to operate across an expanding geographic footprint. Perhaps most importantly, REACH Remote 1 and 2 have now accumulated approximately 750 uncrewed operational days, providing valuable operational experience that continues to strengthen both the platform and the organization.

Speaker #1: Taken together, these milestones demonstrate that REACH Remote is no longer a concept or a pilot program. It is an operational platform that continues to mature through live commercial operations.

Jostein Alendal: It is an operational platform that continues to mature through live commercial operations. Looking beyond the technology itself, the key question is whether REACH Remote creates value for clients. Today, the answer is increasingly supported by operational experience. REACH Remote 1 and 2 have delivered projects for a broad range of customers across multiple markets and application areas. These projects include survey, inspection, monitoring, and IMR activities, demonstrating the versatility of the platform. What we are seeing is that clients are adopting REACH Remote not only because it is new technology but because it solves practical operational challenges and gives savings in their own overall operational cost. Fuel consumption is perhaps the most obvious benefit, with the direct fuel cost savings of up to 90%. By moving expertise and decision-making onshore, we reduce offshore exposure while maintaining operational oversight and execution quality.

Speaker #1: Looking beyond the technology itself, the key question is whether REACH Remote creates value for clients. Today, the answer is increasingly supported by operational experience, and REACH Remote 1 and 2 have delivered projects for a broad range of customers across multiple markets and application areas.

Speaker #1: These projects include survey, inspection, monitoring, and IMR activities, demonstrating the versatility of the platform. What we're seeing is that clients are adopting REACH Remote not only because it's new technology, but because it solves practical operational challenges and delivers savings in their overall operational costs.

Jostein Alendal: What we are seeing is that clients are adopting REACH Remote not only because it is new technology but because it solves practical operational challenges and gives savings in their own overall operational cost. Fuel consumption is perhaps the most obvious benefit, with the direct fuel cost savings of up to 90%. By moving expertise and decision-making onshore, we reduce offshore exposure while maintaining operational oversight and execution quality. The model also supports reduced offshore personnel requirements and more efficient use of specialist resources.

Speaker #1: Fuel consumption is perhaps the most obvious benefit, with direct fuel cost savings of up to 90%. By moving expertise and decision-making onshore, we reduce offshore exposure while maintaining operational oversight and execution quality.

Speaker #1: The model also supports reduced offshore personnel requirements and more efficient use of specialized resources. Combined with REACH Horizon, which provides seamless access to data, operations, and expertise from shore, the result is a fundamentally different way of delivering subsea services.

Jostein Alendal: The model also supports reduced offshore personnel requirements and more efficient use of specialist resources. Combined with the Reach Horizon, which provides seamless access to data operations and expertise from shore, the result is a fundamentally different way of delivering subsea services. Most importantly, these benefits are now being demonstrated through real projects, real clients, and an expanding commercial track record. As a result of this development, REACH Remote has matured into a proven and scalable business platform. We now have operational validation, regulatory acceptance, growing client adoption, and a portfolio of proprietary technologies supporting the platform. The focus is therefore increasingly shifting from validation to scale. During the quarter, the carve-out project was formally launched, and work is progressing according to plan. Advisors have been engaged across legal, financial, and strategic work streams while internal separation activities are underway.

Jostein Alendal: Combined with the Reach Horizon, which provides seamless access to data operations and expertise from shore, the result is a fundamentally different way of delivering subsea services. Most importantly, these benefits are now being demonstrated through real projects, real clients, and an expanding commercial track record. As a result of this development, REACH Remote has matured into a proven and scalable business platform. We now have operational validation, regulatory acceptance, growing client adoption, and a portfolio of proprietary technologies supporting the platform. The focus is therefore increasingly shifting from validation to scale.

Speaker #1: Most importantly, these benefits are now being demonstrated through real projects, real clients, and an expanding commercial track record. As a result of this development, REACH Remote has matured into a proven and scalable business platform.

Speaker #1: We now have operational validation, regulatory acceptance, growing client adoption, and a portfolio of proprietary technologies supporting the platform. The focus is therefore increasingly shifting from validation to scale.

Speaker #1: During the quarter, the carve-out project was formally launched, and work is progressing according to plan. Advisors have been engaged across legal, financial, and strategic workstreams, while internal separation activities are underway.

Jostein Alendal: During the quarter, the carve-out project was formally launched, and work is progressing according to plan. Advisors have been engaged across legal, financial, and strategic work streams while internal separation activities are underway. We are also seeing strong interest from a broad range of industry participants and are actively engaged in discussions, Q&A process, and due diligence activities. The ambition is to establish Reach Remote as a dedicated technology company and leading asset developer and owner with remote and autonomous offshore operations.

Speaker #1: We are also seeing strong interest from a broad range of industry participants, and are actively engaged in discussions, Q&A processes, and due diligence activities.

Jostein Alendal: We are also seeing strong interest from a broad range of industry participants and are actively engaged in discussions, Q&A process, and due diligence activities. The ambition is to establish Reach Remote as a dedicated technology company and leading asset developer and owner with remote and autonomous offshore operations. Reach Remote is intended not only to operate vessels and subsea robotics but to drive technology development and innovation within remote operations, robotics, and digital subsea services on a global scale. Reach Subsea is the first customer utilizing the initial four Reach Remote units, and several of the industry participants who are engaged in the carve-out process are also potential direct customers of Reach Remote. We believe this creates the best condition for accelerating growth, building scale, minimizing cost, and maximizing long-term value creation. We have already demonstrated what the model can deliver.

Speaker #1: The ambition is to establish REACH Remote as a dedicated technology company and leading asset developer and owner with remote and autonomous offshore operations. REACH Remote is intended not only to operate vessels and subsea robotics, but also to drive technology development and innovation within remote operations, robotics, and digital subsea services on a global scale.

Jostein Alendal: Reach Remote is intended not only to operate vessels and subsea robotics but to drive technology development and innovation within remote operations, robotics, and digital subsea services on a global scale. Reach Subsea is the first customer utilizing the initial four Reach Remote units, and several of the industry participants who are engaged in the carve-out process are also potential direct customers of Reach Remote.

Speaker #1: REACH Subsea is the first customer utilizing the initial four REACH Remote units, and several of the industry participants who are engaged in the carve-out process are also potential direct customers of REACH Remote.

Speaker #1: We believe this creates the best conditions for accelerating growth, building scale, minimizing cost, and maximizing long-term value creation. We have already demonstrated what the model can deliver.

Jostein Alendal: We believe this creates the best condition for accelerating growth, building scale, minimizing cost, and maximizing long-term value creation. We have already demonstrated what the model can deliver. The next phase is about scaling that capability and establishing a global platform for remote and autonomous offshore operations. With this, I will hand the world over to Arne, who will take you through our financials.

Speaker #1: The next phase is about scaling that capability and establishing a global platform for remote and autonomous offshore operations. And with this, I will hand the word over to Arne, who will take you through our financials.

Jostein Alendal: The next phase is about scaling that capability and establishing a global platform for remote and autonomous offshore operations. With this, I will hand the world over to Arne, who will take you through our financials.

Speaker #2: Good morning. Thank you, Jostein, and thank you for joining REACH Subsea's second quarter 2026 webcast. As always, we encourage you to submit questions through the chat during the presentation, and we will address them towards the end of the session.

Arne Joa: Good morning. Thank you, Jostein, and thank you for joining Reach Subsea's Q2 2026 webcast. As always, we encourage you to submit questions through the chat during the presentation, and we will address them towards the end of the session. Before we move into the details, let me briefly summarize the financials of this quarter. Revenue increased to NOK 988 million, up 44% year on year. EBIT more than doubled to NOK 192 million, compared to NOK 91 million in the same quarter last year. The result reflects improved operational leverage from higher activity levels, despite increased depreciation related to IFRS 16 assets. Net profit after tax reached NOK 134 million, an increase of 84% from Q2 2025.

Speaker #2: Before we move into the details, let me briefly summarize the financials of this quarter. Revenue increased to NOK 988 million, up 44% year-on-year.

Speaker #2: The improvement was driven by higher project activity and increased vessel utilization across the fleet, including the addition of Norman Jalstein from mid-May. EBIT more than doubled to NOK 192 million, compared to NOK 91 million in the same quarter last year.

Speaker #2: The result reflects improved operational leverage from higher activity levels, despite increased depreciation related to IFRS 16 assets. Net profit after tax reached NOK 134 million, an increase of 84% from the second quarter of 2025.

Arne Joa: Net profit after tax reached NOK 134 million, an increase of 84% from Q2 2025. The strong earnings development reflects the improved operating performance and healthy project execution during the quarter. Cash and cash equivalents ended the quarter at NOK 410 million, up from NOK 170 million a year ago and NOK 335 million last quarter. The equity ratio was approximately 30%, compared to 39% a year ago. The reduction is primarily related to the recognition of lease liabilities and right of use assets associated with Normand Jarstein under IFRS 16.

Speaker #2: The strong earnings development reflects the improved operating performance and healthy project execution during the quarter. Cash and cash equivalents ended the quarter at NOK 410 million, up from NOK 170 million a year ago, and NOK 335 million last quarter.

Arne Joa: The strong earnings development reflects the improved operating performance and healthy project execution during the quarter. Cash and cash equivalents ended the quarter at NOK 410 million, up from NOK 170 million a year ago and NOK 335 million last quarter. The equity ratio was approximately 30%, compared to 39% a year ago. The reduction is primarily related to the recognition of lease liabilities and right of use assets associated with Normand Jarstein under IFRS 16. Despite the lower equity ratio, the company continues to maintain a solid balance sheet and ample liquidity. With that summary, let's take a closer look at the financial development during the quarter. This EBIT bridge illustrates the strong operational leverage in our business. Following a weak Q1 characterized by lower utilization levels, the activity increased significantly in Q2 across the fleet.

Speaker #2: The equity ratio was approximately 30%, compared to 39% a year ago. The reduction is primarily related to the recognition of lease liabilities and right-of-use assets, associated with Normand Jarl, under IFRS 16.

Speaker #2: Despite the lower equity ratio, the company continues to maintain a solid balance sheet and ample liquidity. With that summary, let's take a closer look at the financial development during the quarter.

Arne Joa: Despite the lower equity ratio, the company continues to maintain a solid balance sheet and ample liquidity. With that summary, let's take a closer look at the financial development during the quarter. This EBIT bridge illustrates the strong operational leverage in our business. Following a weak Q1 characterized by lower utilization levels, the activity increased significantly in Q2 across the fleet. Higher vessel utilization and strong performance across the project portfolio were the primary drivers behind the EBIT improvement.

Speaker #2: This EBIT bridge illustrates the strong operational leverage in our business. Following a weak first quarter characterized by lower utilization levels, activity increased significantly in Q2 across the fleet, with higher vessel utilization and strong performance across the project portfolio, which were the primary drivers behind the EBIT improvement.

Arne Joa: Higher vessel utilization and strong performance across the project portfolio were the primary drivers behind the EBIT improvement. Compared with the same quarter last year, EBIT more than doubled. The increase is primarily driven by higher activity levels, improved utilization, and a stronger project performance. This demonstrates that the strategic investments made over recent years in fleet capacity, operational capabilities, and new technology platforms are translating into improved financial performance. Our revenue base continues to become more diversified. Renewables and other sectors now account for close to half of group revenue, while data revenue continues to grow. We also see a broader geographical distribution of activity, reducing dependence on any single market, geography, or customer segment. The balance sheet remains strong, with equity of approximately NOK 1.2 billion and cash and cash equivalents of NOK 410 million at quarter end.

Speaker #2: Compared with the same quarter last year, EBIT more than doubled. The increase was primarily driven by higher activity levels, improved utilization, and stronger project performance.

Arne Joa: Compared with the same quarter last year, EBIT more than doubled. The increase is primarily driven by higher activity levels, improved utilization, and a stronger project performance. This demonstrates that the strategic investments made over recent years in fleet capacity, operational capabilities, and new technology platforms are translating into improved financial performance. Our revenue base continues to become more diversified. Renewables and other sectors now account for close to half of group revenue, while data revenue continues to grow.

Speaker #2: This demonstrates that the strategic investments made over recent years in fleet capacity, operational capabilities, and new technology platforms are translating into improved financial performance.

Speaker #2: Our revenue base continues to become more diversified. Renewables and other sectors now account for close to half of group revenue, while data revenue continues to grow.

Speaker #2: We also see a broader geographical distribution of activity, reducing dependence on any single market, geography, or customer segment. The balance sheet remains strong, with equity of approximately NOK 1.2 billion and cash and cash equivalents of NOK 410 million at quarter-end.

Arne Joa: We also see a broader geographical distribution of activity, reducing dependence on any single market, geography, or customer segment. The balance sheet remains strong, with equity of approximately NOK 1.2 billion and cash and cash equivalents of NOK 410 million at quarter end. In addition, the group maintains a healthy liquidity position and expects approximately NOK 200 million additional liquidity from the planned Viking Reach transaction expected to close in Q4.

Speaker #2: In addition, the group maintains a healthy liquidity position and expects approximately NOK 200 million in additional liquidity from the planned Weco/Renish transaction, which is expected to close in the fourth quarter.

Arne Joa: In addition, the group maintains a healthy liquidity position and expects approximately NOK 200 million additional liquidity from the planned Viking Reach transaction expected to close in Q4. Most of the remaining capital expenditures related to REACH Remote 3 and 4 will be debt-funded, as the equity portion of the project has now largely been invested. Consequently, the liquidity impact of the investment program will diminish significantly going forward. I will now hand the word back to Jostein for a quick summary.

Speaker #2: Most of the remaining capital expenditures related to REACH Remote 3 and 4 will be debt funded, as the equity portion of the projects has now largely been invested.

Arne Joa: Most of the remaining capital expenditures related to REACH Remote 3 and 4 will be debt-funded, as the equity portion of the project has now largely been invested. Consequently, the liquidity impact of the investment program will diminish significantly going forward. I will now hand the word back to Jostein for a quick summary.

Speaker #2: Consequently, the liquidity impact of the investment program will diminish significantly going forward. I will now hand the word back to Jostein for a quick summary.

Speaker #1: Thank you, Arne. Let me just quickly summarize. The second quarter was characterized by solid operational activity across the business, and we continued delivering for our clients.

Jostein Alendal: Thank you, Arne. Let me just quickly summarize. The Q2 was characterized by solid operational activity across the business and continued delivering for our clients. We are actively positioning Reach for the future through a more modern and flexible fleet with Viking Vigor, new build 76, and future REACH Remote vessels, creating important strategic options in the years ahead. REACH Remote continues to mature through commercial operations, regulatory milestones, and growing client adoption, and with approximately 750 earned crewed operational days, an expanding operational footprint, and proven client value. REACH Remote has now moved beyond validation and into the next phase of development. In parallel, the carve-out process is progressing according to plan as we are preparing REACH Remote for long-term scaling and value creation.

Speaker #1: We are actively positioning REACH for the future through our more modern and flexible fleet, with Viking Vigo, newbuild 76, and future REACH Remote vessels creating important strategic options in the years ahead.

Speaker #1: REACH Remote continues to mature through commercial operations, regulatory milestones, and growing client adoption, with approximately 750 uncrewed operational days, an expanding operational footprint, and proven client value.

Speaker #1: REACH Remote has now moved beyond validation and into the next phase of development. In parallel, the carve-out process is progressing according to plan, as we are preparing REACH Remote for long-term scaling and value creation.

Jostein Alendal: REACH Remote has now moved beyond validation and into the next phase of development. In parallel, the carve-out process is progressing according to plan as we are preparing REACH Remote for long-term scaling and value creation. Taken together, we believe Reach is well-positioned to capture future opportunities across both conventional operations and the growing market for remote and autonomous offshore services. Thank you for your attention, and we will be ready for your question shortly.

Speaker #1: Taken together, we believe REACH is well positioned to capture future opportunities across both conventional operations and the growing market for remote and autonomous offshore services.

Jostein Alendal: Taken together, we believe Reach is well-positioned to capture future opportunities across both conventional operations and the growing market for remote and autonomous offshore services. Thank you for your attention, and we will be ready for your question shortly.

Speaker #1: Thank you for your attention, and we will be ready for your questions shortly.

Arne Joa: Yes. Thank you for joining our Q&A session.

Speaker #3: Yes, thank you for joining our Q&A session. Are you ready, Jostein?

Arne Joa: Are you ready, Jostein?

Jostein Alendal: I am.

Speaker #2: Yes, quite a few questions coming in. First one for you, Jostein: Can you tell us more about the timeline for the REACH Remote carve-out?

Arne Joa: Yes, quite a few questions coming in. First one for you, Jostein. Can you tell us more about the timeline for the Reach Remote carve-out?

Speaker #3: Yeah. We haven't set any sort of hard stops yet. We are progressing very well. Maybe in a short time we will come up with an all-star timeline, but for the time being, good discussions and so on.

Jostein Alendal: Yeah. We haven't set hard stops yet. We are progressing very well. Maybe in a short time we will come up with an onset timeline, but for the time being, there are good discussions and so on.

Speaker #3: So yes.

Arne Joa: Yes, and same topic. Can you tell us more what kind of partners Reach Subsea is looking for when it comes to Reach Remote carve-out? Is it mainly industrial or financial partners?

Speaker #2: On the same topic, can you tell us more about what kind of partners REACH is looking for when it comes to the REACH Remote carve-out? Is it mainly industrial or financial partners?

Jostein Alendal: The best thing is industrials, of course, with the same view of what we are going to build and a long-term view on what we are going to create. We have a good list of both industrial and financial parties, counterparts, so to speak.

Speaker #3: The best thing is industrials. Of course, with the same view of what we are going to build and sort of a long-term view on what we're going to create.

Speaker #3: But we have a—we have a good list of both industrial and financial parties, counterparts, so to speak. So—

Arne Joa: Yes. It will be exciting. A question about utilization. It's about Q3 utilization. If we are running above, in line with, or below the Q2 rate, as well as our expectations for the full year. We normally don't give any guiding. I think quite a few are following our vessels on MarineTraffic and different platforms. I don't know if you want to add something, Jostein, about

Speaker #2: Yes, we'll be exciting. A question about utilization: It's about Q3 utilization. Are we running above, in line with, or below the second quarter's rate?

Speaker #2: As well as our expectations for the for the fully full year. We we normally don't give any any guiding. So but I but I think quite quite a few are following our our vessels on marine traffic and and different platforms.

Speaker #2: So, I don't know if you want to add something, Jostein, about...

Speaker #3: No, that was a good answer.

Jostein Alendal: No, that was a good answer.

Speaker #2: Yes, okay, good. And then a quite detailed one about the current employment status of GoElectra, and what we expect from this vessel over the next quarters.

Arne Joa: Yeah, okay, good. Then a quite detailed one about the current employment status of Go Electra and what we expect from this vessel over the next quarters.

Speaker #3: Yeah, the question is in the same line, with regard to guiding, but...

Jostein Alendal: Yeah, the question is in same line.

Arne Joa: Yeah

Jostein Alendal: Back to guiding.

Speaker #2: Yeah, yeah. Are there other regulatory areas for which the company is currently working to obtain REACH Remote approval?

Arne Joa: Yeah. Are there other regulatory areas for which the company is currently working to obtain Reach Remote approval?

Jostein Alendal: Yes, we are actively working the rest of the European countries. The next big step is going over to Brazil and Americas. So we are working actively within Europe and the big step for the next sort of Reach Remote in all time zones will go to the Americas.

Speaker #3: Yeah. Yes. We are actively working for the the rest of the European countries. And and also the next big step is is going over to to Brazil and and Americas.

Speaker #3: So we are working actively within Europe, and the big step for the next sort of REACH is remote in all time zones when we go to the Americas.

Speaker #2: Yes, good. So, question here about the operational performance of REACH Remote 1 and 2 in Q2. Question: REACH, could you disclose if REACH Remote 1 and 2 were contribution positive in Q2?

Arne Joa: Yes. Good. There is a question here about the operational performance of Reach Remote 1 and 2 in Q2. The question reads, "Could you disclose if Reach Remote 1 and 2 were contribution positive in Q2?

Speaker #3: Yeah, I see you are—yeah, they made money in Q2.

Jostein Alendal: I see you are happy there, Arne. They made money in Q2.

Speaker #2: Yes. It's we're I guess we're happy with with the development. For the REACH Remote carve-out, I think that questions had been answered already. When it comes to industrial partnership or private or separate listed company, there's a does REACH intend to remain in control after the carve-out?

Arne Joa: Yes. We are happy with the development. For the Reach Remote carve-out, I think that question had been answered already when it comes to industrial partnership or private or separate listed company. Does Reach intend to remain in control after the carve-out?

Speaker #3: No. Yeah. The setup of the carve-out is not is not is dependent on the value creation value setting and and so on. So it's it's also in this discussions with the counterparts.

Jostein Alendal: Yeah, the setup of the carve-out is dependent on the value creation, value setting, and so on. It is also in the discussions with the counterparts, how do we build or make the foundation for that company.

Speaker #3: So, how do we build or make the foundation for that company?

Speaker #2: Yeah, exactly. And we have a new building program, and there is a question regarding Viking Vigo. Is it delayed from the slides?

Arne Joa: Yeah, exactly. We have a new building program and there is a question regarding Viking Vigor. Is it delayed from the slides? It seems to be delivered by year-end compared to early announcement in Q3.

Speaker #2: It seems to be delivered by year-end, compared to the earlier announcement in Q3.

Speaker #3: Yeah. It it there could be an illustration but it's it's aimed for Q4 as far as we as far as we we we know.

Jostein Alendal: Yeah. That could be an illustration. But it is aimed for Q4, as far as we know.

Speaker #3: So yeah. So that's it. It has been delayed from Q2 this year. So it's but we are following the the building process closely and and have people on the yard and and so on.

Arne Joa: Yeah.

Jostein Alendal: That side, it has been delayed from Q2 this year. We are following the building process closely and have people on the yard and so on.

Speaker #3: So

Speaker #2: Yeah. Another question in the same category: Are there any delays for REACH Remote number 3 and 4?

Arne Joa: Yeah. Another question in the same category, are there any delay for REACH Remote 3 and 4?

Speaker #3: No. That building process is going according to to plan and and the the whole whole fabrication and welding is is well underway and according to time plan and and so on.

Jostein Alendal: No. That building process is going according to plan and the hull fabrication and welding is well underway and according to time plan and so on. It's progressing quite well. Also the learning curve from one and two fabrication, we use the same yard, so they are well-trained in building number 3 and 4.

Speaker #3: So, it's progressing quite well. And also, the learning curve from fabrication of number 1 and 2. We used the same yard, so they are well trained in building number 3 and 4.

Speaker #2: Yeah, good. Another question about REACH Remote. It seems there is less activity for REACH Remote 2 compared to REACH Remote 1. Can we expect the demand and activity in Australia to increase in the second half?

Arne Joa: Yeah. Good. Another question about Reach Remote. Seems to be less activity for REACH Remote 2 compared to Reach Remote 1. Can we expect the demand/activity in Australia to increase in the H2?

Speaker #3: Yeah, I think the plan—I know REACH Remote 2 is going to be utilized in the HIP projects down in Australia, so it's going to be occupied.

Jostein Alendal: Yeah. I think the plan now, Reach Remote 2 is going to be utilized in the HIPP projects down in Australia. So it is going to be occupied to New Year. So it is going to be quite busy in the H2.

Speaker #3: To New Year, so it's going to be quite busy in Q4 or the second half.

Speaker #2: Yeah, good. There is a question: How is it with the dividend payment? So, I guess that is referring to the communication that we had in Q1.

Arne Joa: Yeah. Good. There is a question, how is it with the dividend payment? I guess that is referring to the communication that we had in Q1, and the AGM authorization. On that note, the dividend authorization remains in place, but as we have communicated previously, any distribution is subject to compliance with the restriction in our financing agreements. We are not providing guidance on the timing of any dividend payment. The board will evaluate this continuously and only proceed when it is comfortable that all covenant requirements are met. So I do not think we have anything more to add. Good. There is a question on, are all ships on working projects today? Probably means as of today. I think there is a mix.

Speaker #2: And the AGM authorization. And on that note, the dividend authorization remains in place. But as we have communicated previously, any distribution is subject to compliance with the restrictions in our financing agreements.

Speaker #2: So we're not providing guidance on the timing of any dividend payment. The board will evaluate this continuously and only proceed when it is comfortable that all covenant requirements are met.

Arne Joa: We are not providing guidance on the timing of any dividend payment. The board will evaluate this continuously and only proceed when it is comfortable that all covenant requirements are met. So I do not think we have anything more to add. Good. There is a question on, are all ships on working projects today? Probably means as of today. I think there is a mix.

Speaker #2: So, I don’t think we have anything more to add. Good. So, question on: Are all ships on working projects per day? Probably means as of today.

Speaker #2: I think there is a mix.

Jostein Alendal: I think, yeah, they are occupied as we speak. We have one vessel alongside I think. The rest is working.

Speaker #3: I think, yeah, they are occupied as I speak. We have one vessel alongside, and I think the rest are working.

Speaker #2: Yeah, agree. There's a question about the 2 plus 1 year IMR contract in the Black Sea. If we could clarify which company and country the contract is with, and additionally, do you assess any risk exposure arising from the ongoing conflict between Ukraine and Russia?

Arne Joa: Yeah. Agree. There is a question about the 2 plus 1 year IMR contract in the Black Sea. If we could clarify which company and country the contract is with, and additionally, do you assess any risk exposure arising from the ongoing conflict between Ukraine and Russia?

Speaker #3: Yeah, it's a bad neighborhood. But Turkey is actually a good place to be. So, we don't see any risk of escalation there as the rest of the world does.

Jostein Alendal: It's a bad neighborhood. Turkey is a good place to be actually. We don't see any risk of escalation there as the rest of the world. I think this conflict there is a bad thing, but within Turkey and the Turkey offshore activities and so on, it's quite safe.

Speaker #3: I think this this conflict there is yeah. It's a it's a bad thing. But yeah. Within Turkey and the Turkey offshore activities and so on is is quite quite safe.

Speaker #2: Yeah, and are there any particular frontier markets you are monitoring? Follow-up from the last one.

Arne Joa: Are there any particular frontier markets you are monitoring? What was the last one there?

Jostein Alendal: Markets-

Speaker #3: Markets the.

Arne Joa: Particular frontier markets, new markets. I guess we're opportunistic. We're looking at all markets.

Speaker #2: And particular frontier markets, new markets—I guess we're opportunistic, looking at all markets.

Arne Joa: Particular frontier markets, new markets. I guess we're opportunistic. We're looking at all markets.

Speaker #3: Yeah. That's true. And the well oil and gas is is is just a a a good good market. Globally. And it's yeah. With its ups and downs.

Jostein Alendal: That's true. Oil and gas is just a good market globally and with its ups and downs. It is the biggest sort of offshore subsea market in the industry. We are looking at all asset owners and also the reservoir owners and so on. It's a good market. Also when it comes to Reach Remote and the more uncrewed operations, it is also governmental and sort of naval activities like surveillance and so on. All are growing market within the defense sector, unarmed defense sector. That's interesting. Back to bad neighborhoods. There are some bad neighborhoods around the world.

Speaker #3: But it it is the biggest sort of offshore subsea market. And and industry. But we are looking at all asset owners and and also the reservoir owners and and so on.

Speaker #3: So it's the big market and also when it comes to REACH Remote and and the more un uncrewed operations it is also governmental and and and sort of naval activities like surveillance and and and so on.

Speaker #3: So, we are a growing market within the defense sector—unarmed defense sector. So that's interesting. Back to bad neighborhoods, there are some bad neighborhoods around the world.

Speaker #2: Yeah. Unfortunately. There's a question here. What is Acuryx? That is that is the the the name of the the new holding company for the REACH Remote business.

Arne Joa: Yeah. Unfortunately. There is a question here. What is Acorux? That is the name of the new holding company for the Reach Remote business. We have established three new companies, one hold company, one IP company holding the IP rights, and one operating company, and they are named Acorux. So three new companies in the structure. It is a good name. Let us see if it will stick or if it will be something new. That is a good catch from someone. I think we only have one more question. Have you ordered more Reach Remotes?

Speaker #2: So, we have established three new companies: one holding company, one IP company holding the IP rights, and one operating company. And they are named Acuryx.

Speaker #2: So three three new companies in in in the structure. So it's it it's a good name. So let's see if it will stick or if it will be something new.

Speaker #2: But it's a good catch from someone. I think we only have one more question. It is: have you ordered more REACH Remotes?

Speaker #3: Not yet.

Jostein Alendal: Not yet.

Speaker #2: Not yet. Okay, good. If we don't have any more questions coming in, I think we have been through most.

Arne Joa: Not yet. Okay, good. If we do not have any more questions coming in, I think we have been through most.

Speaker #3: Yeah. Good. Thank you.

Jostein Alendal: Yeah. Good.

Arne Joa: Yeah.

Jostein Alendal: Thank you, Arne.

Arne Joa: Yeah.

Speaker #2: Yeah.

Speaker #3: And thank you all. Yeah, see you in the—

Jostein Alendal: Thank you all.

Arne Joa: Yeah. Thank you all.

Speaker #2: Yeah. Thank you all.

Jostein Alendal: See you in three months time.

Speaker #3: Three months time.

Arne Joa: Yeah.

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Q2 2026 Reach Subsea ASA Earnings Call

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