zoomPolar Onyx

Norwegian offshore vessels provider, GC Rieber Shipping, has recognised quarterly loss of NOK 453.8 million, compared with NOK 103.4 million profit in the second quarter of 2015, due to impairment of the fleet and low activity levels.

Namely, the fleet impairment of NOK 335.5 million, in combination with low activity in the oil-related segments of subsea and marine seismic, was the biggest hit on the company’s quarterly bottom line.

The Oslo-listed firm, which operates a fleet of 13 vessels, generated operating income of NOK 49.4 million in the second quarter of 2016. This result compares with approximately NOK 240.8 million same time last year. The notable drop is due to decline of fleet capacity utilization, down from 89 per cent in the second quarter 2015 to 45 per cent in Q2 2016.

In the first half of 2016 GC Rieber’s revenue reduced by more than 50 per cent from NOK 980 million in 1H 2015 to NOK 465 million. Also, loss in the first half year was NOK 547.5 million, or NOK 12.54 per share, compared with a profit of NOK 67.1 million, or NOK 1.54 per share, in the first half year 2015.

As of August, GC Rieber had a contract backlog of NOK 627 million.

Seismic

GC Rieber said that the seismic sector continues to see price pressure, and the assumption is that the market will continue to remain weak. The company has four vessels in this segment, of which one is cold stacked.

Subsea

The subsea market is hesitant, with continued pressure on prices and the main focus is on securing short to medium contracts in order to maintain a satisfactory level of activity in the segment. However, the one SURF vessel Polar Onyx is said to continue to attract market attention as the only non-subsea entity controlled SURF vessel of its size.

Subsea World News Staff