Red Ink for GC Rieber

Business & Finance

Norwegian offshore vessels provider, GC Rieber Shipping, has recognised quarterly loss of NOK 233.5 million, compared with NOK 25.3 million profit in the third quarter of 2015.

The negative result in the third quarter 2016 is mostly due to impairment of the seismic fleet of close to NOK 127 million and low activity in subsea and seismic segments.

“The overall market situation in the offshore segments remain challenging and we do expect this to continue,” said acting CEO Einar Ytredal.

The Oslo-listed firm, which operates a fleet of 11 vessels, generated operating income of NOK 53.7 million in the first quarter of 2016. This result compares with approximately NOK 213 million same time last year. Rieber reported fleet utilization of 54 percent, against to 87 percent in the third quarter 2015.

At the end of the third quarter, GC Rieber had a contract backlog of NOK 586 million.

Shearwater GeoServices

In October this year, GC Rieber together with Rasmussengruppen launched new marine geophysical company ‘Shearwater GeoServices’.

Shearwater will take over the four seismic vessels from GC Rieber Shipping, namely: Polar Empress, Polar Duke, Polar Duchess, and Polar Marquis.

Following the establishment of Shearwater, and the sale of four seismic vessels to the new joint venture, GC Rieber booked above mentioned impairments totalling NOK 126.9 million for the fleet.

Subsea World News Staff