GC Rieber Shipping Reports Improved Operating Results Despite Challenging Market Conditions

GC Rieber Shipping ASA had a fleet utilisation of 98% in the fourth quarter of 2018 despite continued challenging market conditions. The subsea and ice/support vessels have contract coverage of 79% for 2019. Shearwater GeoServices’s active fleet is booked through the first quarter of 2019 and the company is in the process of reactivating further vessels after having secured additional backlog for the summer season.

In the fourth quarter, Shearwater completed the acquisition of the marine seismic acquisition assets and operations of WesternGeco, forming a global market-leading geophysical company. GC Rieber Shipping’s participation in the acquisition was financed by a NOK 246 million rights issue which was completed in December 2018. As a result of the transaction, GC Rieber Shipping booked a non-cash gain of NOK 310 million in the fourth quarter of 2018. GC Rieber Shipping’s ownership in Shearwater after the transaction is approximately 20%.

Image: TommyChia-SG/ GC Rieber AS

GC Rieber Shipping had operating income of NOK 70.2 million in the fourth quarter of 2018, compared with NOK 50.4 million in the corresponding period of 2017. EBITDA was positive NOK 273.7 million, compared with negative NOK 65.7 million in the fourth quarter of 2017. The increase in EBITDA from 2017 is mainly related to the non-cash gain from the Shearwater transaction, and also higher vessel utilisation.

“We had good utilisation in the fourth quarter and have secured a satisfactory backlog for the subsea and ice support fleet through the third quarter of 2019. There are signs of improvement in the offshore market sentiment, but this has yet to have a meaningful impact on market rates,” says GC Rieber Shipping’s CEO, Einar Ytredal.

Source: GC Rieber Shipping