GC Rieber’s 4Q hit by fleet impairment

Norwegian seismic player GC Rieber Shipping has posted the loss of continuing operations in fourth quarter of NOK 170.3 million, compared with a loss of NOK 110.0 million in the corresponding period 2015.

Converted to U.S. dollars – today’s values – loss from continuing operations came at $20.35 million, versus $13.6 million in the fourth quarter of 2015.

The company said the quarterly results were significantly affected by impairment of the fleet of NOK 129.6 million and low activity in the oil related segments.

Total fleet utilization was 46 percent, compared to 73 percent in the fourth quarter 2015.

The company’s acting CEO Einar Ytredal said that within the subsea segment, the markets remain challenging and “we expect this to continue.”

However, Ytredal added, important charters in renewables and cable-lay have been secured for two of our vessels within this segment.

Providing the outlook for other business segment, GC Rieber said that despite the oil prices firming, market sentiments remain timid, as oil companies continue with cost cuts, leading to continued low vessel demand.

Also, GC Rieber expects marine seismic activities to level out, or to experience slight improvement.

Offshore Energy Today Staff

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