GC Rieber Shipping posted a net profit of NOK 75.9 million in the fourth quarter 2008. The net profit for the full year 2008 was NOK 177.5 million. The net profit in the fourth quarter 2008 and the full year 2008 is affected by a reversal of last year's environmental funds provisions of NOK 43.9 million. This amount has been recognized as taxable income as at 31.12.2008, thus increasing the company's equity. The company has a solid financial capacity with NOK 743 million in liquid assets and a contract backlog of NOK 1126 million. The board proposes a dividend of NOK 0.50 per share, corresponding to NOK 21.8 million.
The company's liquidity is good, the gearing is low, and the financial risk related to a possibly long-lasting financial crisis is considered to be limited and manageable. - We have considerable flexibility in relation to the covenants in our external loan agreements, says CEO Sven Rong, and mentions as an example: - We have a book equity ratio of 56%, high above the minimum requirement of 30%.
Rong is satisfied with the results for the fourth quarter 2008, while recognizing that the current financial and real economy crisis will result in a weaker development in the offshore subsea and seismic market segments short to medium term: - Again we post solid results in line with our expectations, but we foresee a weaker market within the areas offshore subsea and seismic in 2009 and this will cause a significant reduction in the group's earnings in 2009. At the same time we have a strong financial capacity, which provides competitive advantages in todays market. A short to medium term weakening of the market is also expected to give strategic opportunities, which we intend to take advantage of, says Rong.
The long term market outlook within the company's segments - offshore subsea, marine seismic and ice/research - is good, and the company will continue the strategic intiative related to expansion in the value chain within oil service. - The oil price and activity will increase in the longer term as a consequence of declining oil reserves and our strategy is adapted to this scenario, Rong concludes.
Other financial key figures in the fourth quarter 2008:
- Operating income of NOK 156.9 million (NOK 152.4 million in Q4 07)
- EBITDA from continuing operations of NOK 51.8 million (NOK 53.9 million in Q4 07)
- Normalized profit before tax from continuing operations was NOK 30.5 million (NOK 38.6 million in Q4 07)
- Cash equivalents and net cash position of NOK 743 million and NOK 104 million, respectively
- Contract backlog of NOK 1126 million
For further information, please contact:
CEO Sven Rong,
Phone +47 55 60 68 18, or +47 90 55 49 52
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 offshore subsea, ice research and support, as well as marine seismic. The group has a unique competence on offshore operations in harsh environments and design, development and maritime operation of seismic vessels. Through strategic value chain investments the group has substantial knowledge and experience within offshore subsea and marine seismic.
GC Rieber Shipping owns and operates six advanced multifunctional special purpose vessels for defined markets within offshore subsea, ice research and support and marine seismic. Furthermore, GC Rieber Shipping has ordered four offshore newbuildings for delivery in 2009/2010. The group's strategic value chain investments encompass the subsea contractor Technocean (58% shareholding), the seismic company Hexio (60% shareholding) as well as the geotechnical surveying company Bluestone Offshore (40% shareholding). GC Rieber Shipping is also in charge of marine ship management for 10 seismic vessels owned by PGS, CGGVeritas and Fugro, as well as project management and building supervision for four advanced seismic newbuildings for PGS.
The company is headquartered in Bergen with ship management offices in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia), which provides global presence. The company is listed on Oslo Børs with ticker RISH. Further information is available on the company's website:
www.gcrieber-shipping.no.