Date: 14 May 2009

GC Rieber Shipping Q1 2009

GC Rieber Shipping posted a net loss of NOK -3.4 million in the first quarter of 2009. The company had solid earnings from core activities in the quarter (EBITDA of NOK 33 million), but a negative contribution (EBITDA of NOK -15 million) from strategic value chain investments in a development phase contributed to a net loss for the group. The Company maintains its strategic flexibility through a solid financial capacity, with NOK 615 million in liquid assets and a contract backlog which has increased to NOK 1,456 million through the quarter.
GC Rieber Shipping maintains its strategy related to expansion of the value chain within the oil service market: - 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, says CEO of GC Rieber Shipping, Sven Rong. He continues: - The short to medium term weakening of the market gives rise to attractive investment opportunities which the company, by virtue of its strong financial capacity, will seek to exploit.
Rong has the following comments on the financial results: - The results for the first quarter are in line with the expectations we announced in the presentation of the fourth quarter 2008. We are into a weak market cycle and this poses challenges for many companies, especially for early-phase companies. Our strong platform through solid and stable core activities is crucial in such a situation, and to a significant extent offsets the exposure we have through our strategic value chain investments.
Rong expects a certain improvement in the earnings in the second quarter 2009, but still believes the earnings for 2009 will be significantly lower than in 2008: - the "Polarbjørn", which had a low employment rate in the first quarter, is now on charter, and this is expected to lead to improved earnings in the core activities through the remaining part of the year. However, we are still exposed towards weak markets through our value chain investments, which to a large extent are companies in a build-up phase.
Other highlights from the 1st quarter 2009:
  •          Operating income of NOK 146.7 million (NOK 112.0 million in Q1 08)
  •          EBITDA of NOK 18.4 million (NOK 26.2 million in Q1 08)
  •          Normalised profit before tax of NOK -8.1 million (NOK 10.6 million in Q1 08)
  •          Liquid assets and net cash reserves were NOK 615 million and NOK 10 million respectively.
  •          Contract backlog was NOK 1,456 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 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 six advanced multifunctional special purpose vessels for defined markets within offshore subsea, ice research and support as well as marine seismic segment. Furthermore, GC Rieber Shipping has, through a 51% owned joint venture company, contracted four new offshore vessels for delivery in 2009/2010. 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 (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 four advanced seismic new builds for PGS.
    The company is headquartered in Bergen, Norway, with ship management offices in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia) for international representation. The company is listed on Oslo Børs with ticker RISH. Additional information is available on the company's web site

    1st quarter 2009

    Presentation of 1st quarter