Date: 6 May 2010

GC Rieber Shipping - First quarter 2010

 GC Rieber Shipping posted an operating profit before depreciation (EBITDA) of NOK 52.3 million in the first quarter 2010. The company's core activities - shipowning and ship management of offshore vessels - continued to deliver stable and solid results, while the results within the company's value chain investments within subsea are improving. The CEO in GC Rieber Shipping, Sven Rong, is satisfied with the development: "Our core activities are solid and we are also pleased to register that Reef Subsea - our value chain investment in subsea - experienced a positive development in operating income and profit in all business areas".


The core activities related to shipowning and ship management of offshore vessels had almost full utilisation in the first quarter and achieved an operating income of NOK 137.1 million and an EBITDA of NOK 51.2 million.


Reef Subsea, GC Rieber Shipping's 50/50 joint venture with HitecVision within subsea service, was established in January 2010. Reef Subsea is in the first quarter reported as an associated company and GC Rieber Shipping's share of the profit in Reef Subsea in the quarter amounted to  NOK 0.2 million, after non-recurring items related to the establishment of the company of NOK 5.3 million.  Reef Subsea comprises Technocean (76% ownership), Scan Mudring (76%), as well as Bluestone Offshore (95% ownership). Technocean had full utilisation in the quarter, while both Scan Mudring and Bluestone Offshore had profitable operations. Rong comments: "The positive results in Reef Subsea demonstrates that it is possible to operate profitably even in difficult times, as long as you deliver high quality services and operate in selected niches that are less sensitive to overall business cycles. The restructuring and capital injection during the first quarter in the companies owned by Reef Subsea provide a solid platform for further growth".


Octio Group, GC Rieber Shipping's 60% owned subsidiary within permanent monitoring of oil and gas fields, delivered negative results in the first quarter 2010 as expected. The company is in an early commercialisation phase and is expected to deliver negative results through 2010.


As a result of the judgment from the Norwegian Supreme Court on the tonnage tax system in February, GC Rieber Shipping could book a tax income of NOK 128 million for 2009. In March 2010, the Norwegian government claimed that the shipping companies were liable for pre-2007 contingent tax, even when considering the Supreme Court judgment.  At the same time, the government outlined a voluntary settlement arrangement, under which the shipping companies can choose final taxation of the liabilities by approximately 6.7%, which for GC Rieber Shipping implies a tax expense of approximately NOK 56 million. GC Rieber Shipping awaits further dealings on this matter in the Norwegian parliament, and has not made any provisions in this respect as at 31 March 2010.


On 1 March 2010, GC Rieber AS proposed a merger with GC Rieber Shipping ASA. In this connection, the Board of Directors in GC Rieber Shipping ASA retained Carnegie ASA as financial advisor and Wikborg Rein as legal advisor to assist the Board of Directors in the evaluation of the proposal and assessment of possible merger negotiations with GC Rieber. The merger discussions were ended on 3 May 2010.


Key figures in the first quarter 2010:



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 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 owns seven and operates currently eight advanced multifunctional special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments. Furthermore, GC Rieber Shipping has two subsea IMR/CSV newbuildings for delivery late 2010 and mid 2011. Through a joint venture of which GC Rieber Shipping owns 51%, the group also has two new offshore vessels for delivery in 2010. The group's strategic value chain investments include the subsea services company Reef Subsea (50 % stake) and the company Octio (60% stake) which is in the business of permanent monitoring of existing oil fields. GC Rieber Shipping is also in charge of marine ship management for seven seismic vessels owned by PGS, CGGVeritas and Fugro.


The company is headquartered in Bergen with ship management companies 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

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

Q1 2010 Report

Q1 2010 Presentation