GC Rieber Shipping had a loss of NOK 201.4 million in the fourth quarter 2014, compared with a loss of NOK 73.5 million in the corresponding period in 2013.
The negative result in the fourth quarter 2014 is due to loss provisions for the seller’s credit to the HV V Golf companies as well as loss provisions on outstanding receivables relating to Reef Subsea amounting to a total of NOK 211.0 million.
Additionally, there is an unrealised currency loss of NOK 90.1 million.
The negative result in the fourth quarter 2013 was mainly related to GC Rieber Shipping’s share in the loss of Reef Subsea at the time.
In January 2014,GC Rieber Shipping entered into an agreement to sell the company’s shares in Reef Subsea AS to HV V Invest Golf AS and HV V Invest Golf II AS,two investment companies owned by the private equity fund HitecVision V, LP.
The transaction included the provision of a seller’s credit to the HV V Invest Golf companies. In February 2015, Reef Subsea and the HV V Invest Golf companies have declared bankruptcy. As a consequence, GC Rieber Shipping has made a loss provision of NOK 211 million of which NOK 182 million relates to the seller’s credit, including accrued interests, and NOK 29 million is a loss provision for outstanding accounts receivables.
GC Rieber Shipping has a fleet of 11 vessels within the segments subsea, marine seismic and ice/ support. In addition, the company has one 3D seismic vessel under construction at Kleven Verft scheduled for delivery April 2015. The company also operates another two vessels.
At the end of the quarter the company had a contract backlog of NOK 3.4 billion. The contract portfolio consists mainly of medium-term contracts, with average contract duration of 2.3 years. Two of GC Rieber Shipping’s subsea vessels have been chartered to Reef Subsea. One of the vessels was returned at year-end 2014, whereas the contract for the second vessel expired February 2015. According to the company, Reef Subsea’s bankruptcy petition therefore has no effect on GC Rieber Shipping’s order backlog.
The group’s operating revenues for the fourth quarter 2014 amounted to NOK 258.5 million, up from NOK 175.6 million in the fourth quarter 2013. The increase is primarily due to more vessels in operations, as the newbuild “Polar Onyx” started operations in the first quarter 2014 and “Polar Marquis” was being rebuilt large parts of the fourth quarter last year. EBITDA ended at NOK 130.2 million, corresponding to an EBITDA margin of 50.4 percent. EBITDA for fourth quarter 2013 was NOK 72.4 million, corresponding to an EBITDA margin of 41.3 percent.
The preliminary operating income for 2014 amounted to NOK 881.5 million, compared to NOK 745.5 million in 2013. EBITDA was 453.5 million, compared to 389.3 the year before. The preliminary result for 2014 ended with a loss of NOK 80.1 million, while the company had a profit of NOK 371.0 million in 2013.
“We have again demonstrated strong operational results in our core business, however our overall results were negatively impacted by the provisions made in relation to the recent bankruptcy in Reef Subsea”, says CEO Irene Waage Basili.