GC Rieber Shipping Profit Up on Vessel Sale

GC Rieber Shipping today announced it has delivered its best quarterly result in the company’s history.

The company had an overall fleet utilisation of 96 percent, corresponding to the same level in the third quarter last year. Sale of vessel has released a substantial amount of cash  and GC Rieber Shipping is well positioned for further growth.

Operating income for the third quarter amounted to NOK 230.1 million, representing an increase of 10 percent from the same quarter last year. EBITDA was NOK 137.9 million, up from NOK 106.9 million, and represents an EBITDA margin of 60 percent. Increase in EBITDA margin is primarily due to termination of existing UK Tax Lease agreement for the vessel “Ernest Shackleton”, which gave an accounting gain of NOK 22.7 million.

GC Rieber Shipping recorded net profit of NOK 439.5 million in the third quarter, compared to NOK 60.2 million in the same period in 2012. The result is mainly due to the sale of the vessel “HMS Protector” in September 2013.

The ice-breaker “HMS Protector” was sold to British Ministry of Defence. The sale provided GC  Rieber Shipping with an accounting gain of NOK 376 million, while the cash effect is NOK 485 million.

Normalised profit after tax amounted to NOK 69.7 million.

 “The good result in third quarter confirms the company’s sound underlying operations. Through the sale of “HMS Protector”, we released substantial funds, and we have strengthened our financial position further. As a part of our business model, strategic sale of vessels enables further investment in new vessels in our core markets “, comments CEO Irene Waage Basili.

As at 30 September 2013, GC Rieber Shipping had a solid contract backlog of NOK 3.1 billion with average contract duration of 2.5 years.

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Press Release, November 07, 2013