Date: 5 November 2009

GC Rieber Shipping - Third quarter 2009


GC Rieber Shipping's core activities, related to ownership and ship management of specialized offshore vessels, posted stable and satisfactory results in the third quarter. The company has utilised the generally weak market to invest in fleet renewal at very attractive prices. The net profit for the quarter was nevertheless negative, due mainly to restructuring with accompanying write downs in the associated company Bluestone Offshore. "The restructuring in Bluestone was necessary and creates a platform for good value creation", says CEO in GC Rieber Shipping Sven Rong.
 
The EBITDA in the quarter amounted to NOK 52.7 million (NOK 59.6 million in Q3 08), of which core activities contributed NOK 51.7 million. Net profit was  NOK -16.1 million (NOK 27.6 million), which was primarily due to write downs in connection with the restructuring in the associated company Bluestone Offshore, causing a loss of NOK -33.7 million.
 
Sven Rong is satisfied with solid results from the core business, but is less pleased with the value chain investments: "Our core activities perform well and we benefit from long contract coverage at good rates for several of our vessels. As expected, our value chain investments are influenced by a weak market, but in addition we had to take large write downs in Bluestone this quarter. We have now initiated the required measures to restructure Bluestone and we have great confidence in this investment both medium and long term. Bluestone's market - geotechnical surveys - is a market with few participants and good profitability".
 
During the quarter, GC Rieber Shipping entered into an agreement with Sea4 concerning acquisition of two CSV/IMR vessels under construction. The acquisition is part of a fleet renewal and involves a total investment of NOK 800 million."The vessels are advanced and multifunctional and the price was very attractive, with an investment cost of approximately 2/3 of comparable vessels", says Rong and adds: "Fleet renewal strengthens the core activity and is expected to contribute to increased earnings".
 
Post-quarter, in October, the company entered into a 50/50 joint venture agreement with HitecVision to establish a new subsea services company.  GC Rieber Shipping contributed its shareholdings in Technocean (58%) and Bluestone Offshore (40%), in addition to a direct investment of NOK 35 million. HitecVision contributed NOK 160 million. The restructuring of Bluestone Offshore is part of the joint venture agreement. "The agreement secures a solid financial platform for growth in Technocean and Bluestone", comments Rong.
 
The company's investment within permanent monitoring - the 60% owned subsidiary Octio Group - has during the quarter taken substantial steps towards commercialisation of its new 4C/4D permanent monitoring system. Rong is pleased with the development in the company: "Octio Group performed a very successful test of its new system in October and is one of the leading companies within the new and exciting market for reservoir monitoring".
 
 
Key figures in the third quarter 2009:
 
 
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 in the offshore/shipping segment includes ownership of specialized vessels, high quality marine ship management, project development and industrial portfolio management within the offshore subsea, ice research and support and marine seismic segments. The company has a unique competence within offshore operations in harsh environments, as well as design, development and maritime operation of seismic vessels. Strategic investments in the value chain have added considerable know-how and experience to the company in terms of offshore subsea and marine seismic operations.
 
GC Rieber Shipping owns and operates seven advanced multifunctional special purpose vessels within the offshore subsea, ice research and support as well as the marine seismic segment markets. Furthermore, GC Rieber Shipping has recently acquired two subsea IMR new builds for delivery in 2010/2011. Through a joint venture company of which GC Rieber Shipping owns 51 %, the company has in addition contracted two new offshore vessels for delivery in 2010. The company's strategic value chain investments include the subsea contractor Technocean (58 % stake), Octio Group, which specializes in permanent monitoring of oil fields (60 % stake) and the geotechnical company Bluestone Offshore (40 % stake). The company is also in charge of the ship management of ten seismic vessels owned by PGS, CGGVeritas and Fugro, as well as project management and building supervision for two advanced seismic new builds for PGS.
 
The company is headquartered in Bergen, Norway, with ship management companies in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia) for international representation. The company is listed on Oslo BÝrs with the ticker RISH. Additional information is available on the company's web site www.gcrieber-shipping.no.

Q3 2009 Report

Q3 2009 Presentation