GC Rieber Shipping Releases First Quarter Results (Norway)

GC Rieber Shipping is optimistic about the further development in 2011. “All the company’s vessels are now on relatively long contracts, which will contribute to solid and stable earnings going forward. In addition, we consider the outlook to be good in our market segments from 2012”, says CEO Irene Waage Basili. She is also satisfied with the progress on the fleet renewal, which will soon be completed. “This makes us well positioned for the future and new projects”.

GC Rieber Shipping had operating income of NOK 100.5 million in the first quarter, which is on par with the previous quarter, but NOK 60.1 million below the corresponding quarter last year. EBITDA amounted to NOK 26.8 million, which is a NOK 16.3 million improvement on the previous quarter. EBITDA in the first quarter 2010 was NOK 52.3 million. Structural changes in subsidiaries, as well as sale of a vessel in 2010, are main factors behind the reduction in operating income and EBITDA compared to the first quarter 2010. The organic decline in activity as compared to last year was primarily related to low utilisation for one of the company’s vessels in the first quarter 2011.

Net loss after tax and non-controlling interests amounted to NOK 22.3 million, as compared to a profit of NOK 29.6 million in the first quarter 2010. The net loss in the fourth quarter 2010 amounted to NOK 144.3 million. The loss in the fourth quarter 2010 included a tax provision of NOK 52.7 million related to entrance into to the settlement regime for the group’s Norwegian tonnage taxed companies. “We will never be satisfied with a net loss, but we have now built a platform for positive development of our business going forward“, Irene Waage Basili summarizes.

GC Rieber Shipping’s value chain investments, activities which are complementary to the shipowning business, still have challenges in the market. The share of loss from GC Rieber Shipping’s associated company Reef Subsea amounted to NOK 25.4 million in the first quarter 2011, an improvement of NOK 15.7 million over the fourth quarter 2010. The continued negative contribution is primarily due to low earnings in the subsidiary Bluestone Offshore, which was sold to Fugro in April 2011. In addition Technocean, another subsidiary, had low earnings due to financial problems for one company’s clients. The attention from governmental authorities to environmental monitoring of offshore activities is increasing. This increases the interest for permanent reservoir monitoring; which may have a positive effect on the demand for Octio’s products and services.

GC Rieber Shipping has increased the contract backlog by approximately NOK 100 million during the first quarter. As at 31 March, the contract backlog amounted to NOK 1,871 million. Average contract duration is three years. The contract coverage for the years 2011-13 is 79%, 72% and 69%, respectively. In addition comes the clients’ options.

Two further vessels in the company’s investment programme have recently been delivered and have commenced on charters. The fleet renewal, with an investment totalling NOK 1.9 billion, will be completed during the next 12 months with delivery of one further subsea vessel and a high capacity seismic vessel. “We have invested at favourable points in time and we are well positioned to take advantage of the positive market outlook“, Basili concludes.

Key financial figures for the first quarter 2011:

* Operating income of NOK 100.5 million (NOK 160.6 million in Q1 2010)

* EBITDA of NOK 26.8 million (NOK 52.3 million)

* Normalised profit before tax of NOK -5.1 million (NOK 12.7 million)

* Liquid assets and net interest bearing debt of NOK 614 million and NOK 708 million, respectively, as at 31.03.2011

* Contract backlog of NOK 1,871 million as at 31.03.2011

[mappress]
Source: rieber-shipping ,May 13, 2011;