Norway: GC Rieber Shipping Announces Increased Revenues in 1Q Results

The result for the first quarter of 2012 shows a significant improvement compared to last year, but is affected by losses in an associated company. “We are focusing on how to exploit attractive market trends going forward,” says GC Rieber Shipping’s CEO Irene W. Basili at the presentation of the group’s results for the first quarter of 2012.

Revenue grew by 65 percent and operating profit before depreciation increased from NOK 26.8 million to NOK 69.4 million.

GC Rieber Shipping’s operating revenue in the first quarter was NOK 165.5 million compared to NOK 100.5 million in the first quarter of 2011. Operating profit before depreciation (EBITDA) in the quarter was NOK 69.4 million, up from NOK 26.8 million in first quarter 2011. The EBITDA-margin was 42 percent compared to 27 percent in same period the year before. The scheduled docking as well as some off hire incidents, contributed to a slight reduction of the company’s utilization rate from the previous quarter; a decrease from 97 to 92 percent.

Reef Subsea, a company owned 50 percent by GC Rieber Shipping, had a loss in the first quarter, out of which GC Rieber Shipping’s allocated share was NOK 22.5 million. The loss is primarily caused by the upgrade of two new subsea vessels (“Reef Larissa” and “Reef Despina”). These two vessels will commence on a contract with Talisman for work in the North Sea from May 2012. The market outlook for Reef Subsea in the second half of 2012 is strong and a positive earnings development is expected.

GC Rieber Shipping’s fleet is fully booked, and the company had a contract portfolio of close to NOK 2 billion at the end of the quarter. The company’s newest vessel, “Polar Duchess”, commenced on a contract with Dolphin Geophysical in April. – A balanced contract coverage, a healthy financial position and good market prospects in our segments, gives exciting opportunities ahead, concludes Irene W. Basili.

Key financial figures for the 1st quarter of 2012:

– Operating income of NOK 165.5 million (NOK 100.5 million in Q1 2011)

– EBITDA of NOK 69.4 million (NOK 26.8 million)

– Profit after tax and non-controlling interests of NOK -8.8 million (-22.3 million)

– Normalised profit before tax was NOK 6.2 million (NOK -5.1 million)

– Liquid assets and net interest-bearing debt of NOK 397 million and NOK 1 217 million as of 31.03.2012

– Order backlog of NOK 1,962 million

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 and 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.

GC Rieber Shipping currently operates 18 advanced special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments, of which 12 are owned by the company. This includes GC Rieber Shipping’s ownership in Armada Seismic.

The company is headquartered in Bergen with ship management companies in Sevenoaks (UK) and Yuzhno-Sakhalinsk (Russia).

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Subsea World News Staff, May 15, 2012; Image:  GC Rieber Shipping