Conservative strategy helping GC Rieber through difficult timesCompany News // February 23, 2016
GC Rieber Shipping's CEO Irene Waage Basili says the company's results for the fourth quarter were affected by significant non-recurring items such as the bankruptcy of a large client, impairments and charging of deferred taxes.
"The current market situation in the offshore segment is challenging to say the least, and unfortunately is affecting just about everyone operating in this space," she said. She emphasized that the company has a continued to focus on adapting vessel operations and its organisation to a considerably lower cost level. "Our conservative financial strategy has proven to be wise and will enable us to navigate in the market moving forward."
The group had operating income of NKr 179.0 million, compared to NK 258.5 million in the fourth quarter 2014. EBITDA was negative by NKr 108.0 million in the quarter, compared to NKr 130.2 million in the corresponding period in 2014. Total fleet utilization was 73 per cent, compared to 100 per cent in the fourth quarter 2014. EBITDA for 2015 was NKr 398.2 million compared to NKr 453.5 million in 2014.
The group had a loss of NKr 400.1 million in the fourth quarter of 2015, compared to a loss of NKr 201.4 million in the corresponding period in 2014. This includes a loss of NKr 189.7 million on accounts receivables related to the Dolphin Geophysical bankruptcy.
The company also suffered impairments totaling NKr 132.8 million for its fleet in the fourth quarter 2015. Total impairments for its fleet for the fiscal year 2015 reached a level of NKr 251.6 million. In addition, deferred tax assets of NKr 64 million were charged as an expense in the fourth quarter 2015.
The company's preliminary annual loss for 2015 is NKr 307.7 million compared with a loss of NKr 80.1 million the previous year.