Eidesvik Reach, the joint venture of Reach Subsea and Eidesvik Offshore, has made a notable decision to sell its IMR vessel, the Viking Reach, a vessel with a rich history and robust capabilities.
Established as a partnership where Eidesvik holds a 50.1% interest and Reach Subsea possesses the remaining 49.9%, this joint venture has put the Viking Reach, originally built in 2009 and measuring 85 meters in length, on the market. The terms are laid out in a memorandum of agreement (MoA) with an undisclosed buyer, signifying a pivotal moment for both companies.
In an interesting aspect of the transaction, the work-class remotely operated vehicle (WROV) that currently operates aboard the Viking Reach will also be sold. This move aligns with Reach Subsea’s strategic objective of modernizing its fleet as it prepares for the arrival of new vessels that are currently under construction and set to enhance its service capabilities in the coming years.
Upon closure of the deal, Reach anticipates recognizing a significant accounting gain—approximately NOK 30 million (around €2.7 million) tied to the sale of the WROV, alongside an anticipated gain of about NOK 40 million from its stake in Eidesvik Reach. Both financial increments are expected to be recognized in the fourth quarter of 2026, contingent upon the usual conditions being met.
The total liquidity boost from this transaction is projected to exceed NOK 200 million, accounting for the sale of the WROV and anticipated dividends from Eidesvik Reach. This inflow will bolster Reach Subsea’s financial standing and provide greater flexibility for future investments.
“Selling Viking Reach allows us to realize value in a favorable second-hand vessel market while advancing our long-term fleet renewal strategy,” stated Jostein Alendal, CEO of Reach Subsea. He emphasized the attractive return on the investment made during their ownership, underscoring that this sale not only helps in strengthening their balance sheet but also enhances operational efficiency.
Eidesvik Offshore also reported substantial financial gains from this transaction, projecting a return of about NOK 80 million. In a statement, Helga Cotgrove, Eidesvik’s CEO, expressed satisfaction with the sale, remarking on the solid profit derived from capitalizing on the robust market for second-hand vessels.
To add context, the Viking Reach was acquired by Eidesvik Reach at the beginning of 2023 for approximately €25.5 million. This strategic acquisition marked a significant phase in the partnership’s journey, further augmenting its operational capabilities. Now, as they look towards divesting the vessel, this decision appears to be a calculated step in their broader strategy of fleet renewal.
The Viking Reach’s legacy continues as it embarks on a new chapter, showcasing the dynamic nature of the offshore energy sector and the strategic decisions companies must navigate for growth and efficiency.