The final quarter of the year was influenced by low employment rate on the company's vessels that operate in the spot market, losses from the company's value chain investments, as well as non-recurring tax expenses related to entrance into to the settlement regime for the group's Norwegian tonnage taxed companies. "Two of our vessels which operate on short term contracts, were affected by the weak market in subsea and seismic. Furthermore, our value chain investment in subsea have taken extraordinary write-downs, related to losses on receivables, and depreciations", comments the acting CEO in GC Rieber Shipping, Hans Petter Klohs.
GC Rieber Shipping has during the last months entered into long term charter agreements for three newbuildings and one existing 2D vessel. Klohs comments: "We have several newbuildings that will be entering the market in 2011 and commence on charters immediately when they are operational. This will significantly improve our earnings capacity further on in 2011".
The operating income in the fourth quarter amounted to NOK 103.2 million, compared to NOK 146.6 million in the corresponding quarter in 2009. The EBITDA amounted to NOK 10.5 million, compared to NOK 44.4 million in the fourth quarter 2009. Both operating income and EBITDA are negatively influenced by loss of revenues and earnings from the "Polar Queen", which was sold to Acergy in June 2010, as well as low earnings in the fourth quarter 2010 on two of the group's vessels which have been operating in the spot market. The operating income is further negatively affected by the loss of operating income from Technocean and Scan Mudring, reported as associated companies as of February 2010. Net loss amounted to NOK -144.3 million in the fourth quarter 2010 and NOK 148.7 million for the full-year 2010. The results include a tax provision of NOK 52.7 million, due to entrance into the settlement regime for the group's Norwegian tonnage taxed companies.
The share of loss from GC Rieber Shipping's associated company Reef Subsea amounted to NOK -41.1 million in the fourth quarter 2010. The negative contribution is primarily due to a provision for loss on receivables made by Reef Subsea, relating to the fact that one of Technocean's clients, Subocean, has been put under administration. Furthermore, Reef Subsea has made a depreciation of NOK 11.5 million in the fourth quarter 2010, in connection with a final purchase price allocation as at 31.12.2010, related to the acquisition of the companies Technocean and Bluestone Offshore in January 2010. The negative results are also influenced by low employment rate for Bluestone Offshore in the fourth quarter 2010.
GC Rieber Shipping has a newbuilding programme, which encompasses three subsea newbuildings and two high capacity seismic newbuildings, that are expected to be operational from Q2 2011 to early 2012. During the last months long term charter agreements have been entered into for three of these newbuildings. "These newbuildings have been acquired at favourable points in time and at attractive prices. Our earnings capacity will improve significantly further on in 2011, as the newbuildings enter the market and commences on established charter agreements", Klohs concludes.
Key financial figures from the fourth quarter 2010:
Key financial figures for the full year 2010:
· Operating income of NOK 561.2 million (NOK 668.5 million in 2009)
· EBITDA of NOK 175.9 million (NOK 167.3 million)
· Normalised pretax profit of NOK 3.8 million (NOK 3.0 million)
For further information, please contact:
CEO (acting) Hans Petter Klohs, phone +47 55 60 68 24, or +47 90 75 05 26
VP Finance Einar Ytredal, phone +47 55 60 68 54, or +47 97 52 01 84
About GC Rieber Shipping:
GC Rieber Shipping's business within offshore/shipping includes ownership in specialized vessels, high quality marine ship management, project development and industrial portfolio management within the segments subsea, ice/support, as well as marine seismic. The group has a unique competence in offshore operations in harsh environments as well as design, development and maritime operation of seismic vessels. Through strategic value chain investments the group has substantial knowledge and experience within subsea and marine seismic.
GC Rieber Shipping currently owns six and operates seven advanced multifunctional special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments. GC Rieber Shipping has two subsea IMR/CSV newbuildings and one IMR newbuilding for delivery in 2011. GC Rieber Shipping also owns 65 % of Armada Seismic, which owns one high-capacity seismic vessel and has one newbuilding for delivery in the first quarter 2012. The group's strategic value chain investments include the subsea services company Reef Subsea (50 % stake) and the company Octio (73 % stake) which is in the business of permanent reservoir monitoring. GC Rieber Shipping is also in charge of marine ship management for nine offshore vessels for other owners.
The company has its registered office and is headquartered in Bergen with ship management companies in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia), which provides international presence. The company is listed on Oslo Børs with ticker RISH. Further information is available on the company's website www.gcrieber-shipping.no.