Date: 13 May 2008

GC Rieber Shipping - Interim report first quarter 2008


GC Rieber Shipping posted a net profit of NOK 30.2 million in the first quarter 2008, compared with NOK 17.9 million in the first quarter 2007. The improvement is mainly attributed to financial income, as a consequence of a higher liquid assets holding and unrealized currency gains. The operating profit is lower than the same period last year, due to currency development and bad weather conditions in the North Sea.
 
- We have spent the first quarter positioning for expanded activity in the offshore subsea market, says CEO Sven Rong. - We announced the acquisition of subsea specialist company Scan Mudring in February and an investment in four specialized offshore new buildings in May, and we have still financial capacity for further investments.
 
Other highlights in Q1 2008:
 
The reduction in operating income and EBITDA from continuing operations in the first quarter 2008 compared to the corresponding period in 2007 is partly due to weaker (15%)  USD and GBP, but also due to lower earnings from the subsidiary Technocean, which is caused by market conditions and bad weather conditions in the North Sea. Operating activities are, however, on a satisfactory level.
 
Sven Rong is satisfied with both plan and progress related to the reinvestment of the capital released from disposal of the shareholding in Arrow Seismic. - We have initiated the expansion within the value chain in the offshore service market - the acquisition of Scan Mudring constitutes an important contribution to Technocean and our subsea initiative. In addition, further down the road, the investment in four specialized offshore new builds will provide a significant boost to Technocean's capacity, as well as opening for other opportunities. Two of the vessels are scheduled to be chartered to Technocean and will be equipped with an offshore crane and hangar for storage and deployment of ROV's.  
  
The total investment for the four new builds, due for delivery in 2009/2010, is estimated to be approximately NOK 1 200 million. The vessels will be owned by a joint venture company registered in Singapore, where GC Rieber Shipping will own 51%, corresponding to an investment of slightly above NOK 600 million. Sven Rong sees several positive side effects from the investment in the new builds: - We have resolved to establish an operational organisation in Singapore. This will first of all provide easier access to the Asian market, which is attractive for GC Rieber Shipping's area of business. In addition, local presence will provide for the ease of recruiting regional marine crew.
 
For further information, please contact:
 
CEO Sven Rong, phone +47 55 60 68 18, or +47 90 55 49 52
CFO Hans Petter Klohs, phone + 47 55 60 68 24, or +47 90 75 05 26
 
About GC Rieber Shipping:
GC Rieber Shipping's business within offshore/shipping encompass high quality marine ship management of specialized vessels, project development and industrial portfolio management. The company has a unique competence on operations offshore in harsh environments, as well as design, development and maritime operation of seismic vessels. The company has also built substantial competence on subsea operations, both through the 52% stake in subsea contractor Technocean and through long term cooperation with other key players in the market.
 
GC Rieber Shipping owns and operates five advanced multifunctional special purpose vessels for defined markets within offshore subsea and ice research and support. The company is also in charge of ship management for 12 seismic vessels owned by PGS, CGGVeritas and Fugro, as well as project management and building supervision for four advanced seismic new buildings for Arrow Seismic (PGS).  The company's headquarters is located in Bergen with ship management offices in Sevenoaks (England) and Yuzhno-Sakhalinsk (Russia). The company is listed on Oslo BÝrs with ticker RISH. Further information available on the company's website: www.gcrieber-shipping.no

1st quarter 2008

Presentation of 1st quarter