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    Solid results at GC Rieber Shipping

    Company News // November 12, 2010

    GC Rieber Shipping in Norway has posted what it described as "stable and solid results" from the company's ownership and management of vessels in the third quarter of 2010.

    Operating profit before depreciation (EBITDA) was NKr 56.6 million compared with NKr 52.7 million in the corresponding quarter in 2009.  

    "We have long term contracts on the majority of our vessels and this secures stable and good earnings," said GC Rieber Shipping's CEO Hans Petter Klohs. "We expect our newbuilding programme to provide improved earnings in the longer term". 
    Operating income in the third quarter amounted to NKr 141.7 million, compared to NKr 190.9 million in the corresponding quarter in 2009. Both operating income and EBITDA were affected by loss of operating income and earnings from Technocean and Scan Mudring, which both are reported as associated companies as from February 2010,  as well as loss of earnings from Polar Queen, which was sold to Acergy in June 2010. Earnings from Greatship Maya, which was operational from February 2010, contributed positively. 

    At the beginning of November 2010 GC Rieber Shipping entered into an agreement with Otto Marine to dissolve the 51/49 joint venture companies Polar Marine I and Polar Marine II. Polar Marine I and II originally owned four newbuilding contracts (buildings no. 7037-7040), but cancelled newbuildings 7037 and 7038 in 2009 due to substantial delays at the shipyard.

    In accordance with the agreement with Otto the joint venture companies will be dissolved and Otto will take ownership of the newbuildings 7037, 7038 and 7039. In addition the arbitration related to newbuildings 7037 and 7038 will be withdrawn without any costs on GC Rieber Shipping's behalf. GC Rieber Shipping will take ownership of the IMR newbuilding 7040, at a total investment of close to NKr 300 million, with contractual delivery date at the end of February 2011.
    GC Rieber Shipping's newbuilding programme consists of five newbuildings, with a total investment of approximately NKr 1.9 billion. The programme include three subsea newbuildings and two high-capacity seismic newbuildings with expected delivery in the time period first quarter 2011 to early 2012.

    "Our investments in newbuildings in 2009 and 2010 were made at attractive terms", said Mr Klohs. "Even though we have not entered into any charter agreements for the new vessels yet we have experienced considerable interest in them in the market, and we are confident that the fleet renewal will enhance our earnings in the longer term."


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