GC Rieber takes impairment dive

GC Rieber Shipping has seen its quarterly loss widened on Subsea & Renewables fleet impairment as a result of current market.

Namely, the company recognised an impairment of its Subsea & Renewables fleet in Q1 2020 of NOK 293.3 million.

As a result, GC Rieber booked loss of NOK 301.6 million, against NOK 104.5 million loss same time last year.

The company had a fleet utilisation of 75 per cent in the first quarter of 2020.

GC also reported Subsea & Renewables and Ice/Support vessels contract coverage of 84 per cent for the remainder of 2020.

Operating income stood at NOK 44.4 million, compared with NOK 48.1 million in the corresponding period of 2019.

EBITDA was NOK 57.8 million, compared with an EBITDA of negative NOK 62.1 million in the first quarter of 2019.

This included a non-cash gain of NOK 52.6 million from Shearwater’s strategic vessel transaction with CGG completed in January 2020,

“Uncertainty related to the COVID-19 outbreak and reduction in the oil price has significant negative effect on the markets in which GC Rieber Shipping operates.”, said Einar Ytredal, CEO of GC Rieber Shipping.

“Our focus is now on supporting our crew and clients in these challenging operational circumstances, and also on securing utilisation in what’s expected to be a very tough winter season.”