Seismic drags GC Rieber into the red

Norwegian shipowner GC Rieber Shipping has slipped into the red in the third quarter of 2020 on its marine seismic market share.

As a result, the Oslo-listed GC Rieber booked loss of NOK 27.5 million, against profit of NOK 17.3 million same time last year.

The company had a fleet utilisation of 100 per cent in the quarter.

Operating income stood at NOK 83 million, compared with NOK 74.2 million in the corresponding period of 2019.

EBITDA was NOK 3.6 million, compared with an EBITDA of NOK 65.4 million in the third quarter of 2019.

The year-on-year decrease in EBITDA is mainly due to reduced profitability of Shearwater Geoservices.

Impairment testing as at 30 September 2020 has not resulted in further impairment of the asset values.

However, the company emphasises that there are significant uncertainties regarding the fair values under the current market conditions.

Following the sale of Polar King in Q3 2020, the company owns two vessels within the Subsea & Renewables segment.

Operating income amounted to NOK 83.0 million in the third quarter of 2020, compared with NOK 74.2 million in the third quarter of 2019.

EBITDA amounted to NOK 25.3 million, compared with NOK 32.1 million in the corresponding period of 2019. EBIT amounted to NOK 1.0 million in the period compared with NOK 2.7 million in the third quarter of 2019.

The COVID-19 pandemic and fall in oil price have had significant impact on the markets for marine seismic.

The company has 19 per cent stake in Shearwater Geoservices.

GC Rieber’s share of profit amounted to a net loss of NOK 40.9 million in the third quarter of 2020, compared with a net profit of NOK 16.4 million in the third quarter of 2019.

Shearwater’s third quarter results include write-down and insurance settlement related to the vessel SW Marquis.

The net effect of these items on GC Rieber Shipping’s share of profit is negative NOK 17.8 million.

Einar Ytredal, CEO of GC Rieber Shipping, stated: “Although recently having secured new short-term charters and extensions to ongoing charters, we expect an upcoming winter season with low activity and rate pressure.”

GC had contract backlog of NOK 231 million as of 1 October 2020, excluding marine seismic and options.