GC Rieber Well Positioned for Pursuing New Growth Opportunities, CEO Says

GC Rieber Shipping had good underlying operations in the fourth quarter, and the company shows a solid result for 2013.

Total fleet utilization was 90 percent in the quarter, down from 96 percent in the corresponding period last year. The change mainly relates to rebuilding of the vessel “Polar Marquis” (former “Geo Atlantic”). Three charter parties were extended in the quarter.

Operating income for the fourth quarter 2013 was NOK 192.2 million, compared to NOK 215.6 million in the same period last year. EBITDA was NOK 77.8 million, down from NOK 113.7 million, and represents an EBITDA margin of 41 percent. The reduction is primarily due to reduced revenues following the sale of “HMS Protector” in September 2013, as well as the upgrade of “Polar Marquis”.

The associated company Reef Subsea had a significant negative result in the fourth quarter 2013. Together with unrealised currency loss, this resulted in a loss for GC Rieber Shipping of NOK 73.5 million in the fourth quarter, compared to a profit of NOK 90.7 million in the fourth quarter 2012. GC Rieber Shipping has recently entered into an agreement to sell its share in Reef Subsea.

The preliminary operating income for 2013 amounted to NOK 795.7 million, compared to NOK 781.2 million in 2012. EBITDA was NOK 409.3 million, compared to NOK 376.7 million the year before. The preliminary result for 2013 ended at NOK 371.0 million, up from NOK 199.2 million in 2012.

Based on the extraordinary gain from the sale of “HMS Protector”, the board propose a dividend payment of NOK 1 per share and an additional dividend of NOK 3 per share, in total NOK 4 per share. In total, this amounts to NOK 174.6 million for 2013. The dividend paid for 2012 was NOK 1 per share.

“Operations in the fourth quarter were good and as expected, and the company goes into 2014 with increased focus on our core business. We see exciting opportunities in all segments, and GC Rieber Shipping is well positioned for pursuing new growth opportunities,” says CEO Irene Waage Basili.

As at 31 December 2013, GC Rieber Shipping had a solid contract backlog of NOK 3.3 billion with average contract duration of 2.7 years. The contract coverage for 2014, 2015 and 2016 is 97 percent, 62 percent and 48 percent respectively.