Eidesvik Reach, the joint venture of Reach Subsea and Eidesvik Offshore, is selling its 2009-built, 85-meter-long inspection, maintenance and repair (IMR) vessel Viking Reach.
The joint venture, in which Eidesvik holds a 50.1% ownership interest and Reach Subsea 49.9%, has entered into a memorandum of agreement (MoA) with an undisclosed buyer for the sale of the vessel.
As part of the transaction, Reach will also sell the work-class remotely operated vehicle (WROV) onboard the vessel to the buyer. The company said that the sale is consistent with its strategic focus on modernizing its asset base ahead of the delivery of new vessels currently under construction and scheduled to enter service over the coming years.
Reach expects to recognize an accounting gain of approximately NOK 30 million (around €2.7 million) related to the WROV sale upon completion of the transaction and approximately NOK 40 million related to its ownership interest in Eidesvik Reach. Both gains are expected to be recognized in the fourth quarter of 2026 upon completion of the vessel sale, subject to customary conditions.
Including proceeds from the WROV sale and dividends from Eidesvik Reach related to the transaction, the total positive liquidity effect for Reach is expected to be over NOK 200 million.
“The sale of Viking Reach allows us to realize value in a strong second-hand vessel market while advancing our long-term fleet renewal strategy. The investment has delivered an attractive return over our ownership period. The transaction also releases significant capital, strengthening our balance sheet and providing additional flexibility to continue high-grading our asset base and enhancing operational efficiency,” said Jostein Alendal, CEO of Reach Subsea.
In a separate announcement, Eidesvik Offshore reported it was expecting a gain from the transaction of approximately NOK 80 million.
“We are pleased to announce the sale of Viking Reach with a solid gain. Taking advantage of a strong market for second-hand tonnage, Eidesvik secures a substantial return on the investment. The sale fits with our strategic focus on fleet renewal and high grading of vessels and confirms our ability to monetize investments in the right circumstance,” said Eidesvik’s CEO Helga Cotgrove.
To remind, Eidesvik Reach completed the acquisition of Viking Reach, previously known as Edda Sun, at the beginning of 2023 for a purchase price of about €25.5 million.
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