GC Rieber Shipping posted stable and solid results from the company's ownership and ship management of vessels in the third quarter 2010. The operating profit before depreciation (EBITDA) was NOK 56.6 million in the quarter, compared with NOK 52.7 million in the corresponding quarter in 2009. "We have long term contracts on the majority of our vessels and this secures stable and good earnings", comments acting CEO in GC Rieber Shipping Hans Petter Klohs, and adds: "We expect our newbuilding programme to provide improved earnings in the longer term".
The operating income in the third quarter amounted to NOK 141.7 million, compared to NOK 190.9 million in the corresponding quarter in 2009. Both operating income and EBITDA are affected by loss of operating income and earnings from Technocean and Scan Mudring, which both are reported as associated companies as from February 2010, as well as loss of earnings from "Polar Queen", which was sold to Acergy in June 2010. Earnings from the vessel "Greatship Maya", which was operational from February 2010, contributed positively.
At the beginning of November 2010 GC Rieber Shipping entered into an agreement with Otto Marine ("Otto") to dissolve the 51/49 joint venture companies Polar Marine I and Polar Marine II. Polar Marine I and II originally owned four newbuilding contracts (buildings no. 7037-7040), but cancelled newbuildings 7037 and 7038 in 2009 due to substantial delays at the shipyard. In accordance with the agreement with Otto the joint venture companies will be dissolved and Otto will take ownership of the newbuildings 7037, 7038 and 7039. In addition the arbitration related to newbuildings 7037 and 7038 will be withdrawn without any costs on GC Rieber Shipping's behalf. GC Rieber Shipping will take ownership of the IMR newbuilding 7040, at a total investment of close to NOK 300 million, with contractual delivery date at the end of February 2011.
GC Rieber Shipping's newbuilding programme consists of five newbuildings, with a total investment of approximately NOK 1.9 billion. The programme encompasses three subsea newbuildings and two high-capacity seismic newbuildings with expected delivery in the time period Q1 2011 to early 2012. "Our investments in newbuildings in 2009 and 2010 are made at attractive terms", says Klohs, and continues: "Even though we have not entered into any charter agreements for the new vessels yet, we experience considerable interest for the vessels in the market, and we are confident that the fleet renewal will enhance our earnings in the longer term".
Key financial figures from the third quarter 2010:
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. Furthermore, GC Rieber Shipping has two subsea IMR/CSV newbuildings for delivery early 2011 and mid 2011, as well as one IMR newbuilding for delivery in the first quarter 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 monitoring of existing oil fields. 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 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.