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    GC Rieber Shipping provides update on newbuilds

    Company News // November 9, 2010

    GC Rieber Shipping has provided an update on its ongoing newbuilding programme.

    The programme encompasses five newbuildings with a total investment of approximately NKr 1.9 billion. Three subsea newbuildings and two high-capacity seismic newbuildings are due to be delivered in the period from the first quarter of 2011 tothe first quarter of 2012. 
     
    The two IMR/CSV newbuildings 702 and 703 are being built at the Freire shipyard in Vigo, Spain. The total investment in the vessels (which are 100 per cent owned by GC Rieber Shipping) is expected to be slightly below NKr 800 million and is funded through equity and a long term mortgage loan of US$107 million.

    Newbuild 702 is expected to be operational from early 2011; delivery of newbuild 703 is expected in the third quarter of 2011. "Both vessels have attracted solid interest in the market and GC Rieber Shipping is evaluating several employment alternatives for both newbuildings," the company said.

    The two high-capacity seismic newbuildings 532 and 533 are owned by a 65 per cent owned subsidiary Armada Seismic ASA and are being built at Factorias Vulcano shipyard in Vigo, Spain. The total investment in the vessels is expected to be NKr 850 million plus and is financed through equity and a long term mortgage loan of US$90 million, which may be increased to US$112 million.

    Armada Seismic took delivery of building no 532 in June 2010. The vessel will be upgraded to 12-14 streamers; the upgrade is expected to be complete in February/March 2011.

    The progress on building 533 has been limited, pending clarification concerning the financial situation of Factorias Vulcanos. The yard has said that it has initiated debt restructure proceedings and at the same time is negotiating with the regional government and the shipyard association Pymar regarding pre-delivery financing. 

    "Based on a quick and positive clarification of the pre-delivery financing, we expect delivery of building 533 in the first quarter of 2012. The vessels are attracting solid interest in the market and GC Rieber Shipping is evaluating several employment alternatives for both," the company said.

    GC Rieber Shipping also recently entered into an agreement with Otto Marine concerning dissolution of the two 51/49 per ent owned joint venture companies Polar Marine I and Polar Marine II.

    Polar Marine I and II originally owned four newbuildings (building numbers 7037-7040) but during 2009 newbuilding 7037 and 7038 were cancelled due to substantial delays at the yard.

    According to the agreement with Otto, the joint ventures will be dissolved and Otto will assume ownership of the vessels 7037, 7038 and 7039. Arbitrations related to 7037 and 7038 have been withdrawn with no costs for GC Rieber Shipping.

    GC Rieber Shipping will take ownership of the IMR vessel 7040, with a total investment of slightly below NKr 300 million and contractual delivery at the end of February 2011.
     
     

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