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Impairments drag GC Rieber into the red

Norwegian shipowner GC Rieber Shipping has slipped into the red in the fourth quarter of 2020 on impairment of Subsea & Renewables vessels.

Courtesy: GC Rieber

GC Rieber Shipping had a net loss of NOK 44.9 million in Q4 2020 including impairment of the Subsea & Renewables fleet of NOK 37.1 million, compared with a net profit of NOK 7.6 million in the fourth quarter of 2019.

The company had a fleet utilisation of 81 per cent in the quarter.

Operating income stood at NOK 27.8 million, compared with NOK 43.1 million in the corresponding period of 2019.

Quarterly EBITDA was NOK 1.9 million, compared with NOK 42.3 million in the fourth quarter of 2019.

The year-on-year EBITDA drop is due to the sale of Polar King which had full utilisation in Q4 2019. It also includes a non-cash loss from share issues in associated companies in the fourth quarter of 2020.

“The fourth quarter concludes a year with significant uncertainty. Operational uptime has been satisfactory, but the lack of predictability has led to material impairment of the fleet throughout the year,” Einar Ytredal, CEO of GC Rieber Shipping commented. “Although current market conditions are challenging, outlook is more positive for the upcoming summer season.”

Furthermore, GC Rieber recognised net loss for the full year 2020 of NOK 495.3 million. This includes impairment of the Subsea & Renewables fleet of NOK 459.1 million.

Operating income was NOK 234 million, against NOK 257 million in 2019.

Finally, the company’s backlog is at NOK 163 million as of 1 January 2021, excluding marine seismic and charterers’ options.