GC Rieber Shipping - Fourth quarter 2009

24-02-2010

GC Rieber Shipping posted a net profit of NOK 107.3 million in the fourth quarter and NOK 78.1 million for the full year 2009, after a tax income of NOK 128.2 million. The tax income is a consequence of the judgment by the Supreme Court concerning the Norwegian tonnage tax system. - A correct and positive decision, which contributes to strengthen our investment capacity, CEO Sven Rong comments. The fourth quarter report further reveals that the company's core activities perform well, while investments in new business within subsea and permanent monitoring remains in a seed-phase with corresponding weak results. But Rong is not concerned. - We have a long term horizon and we are convinced that investments in offshore will grow substantially in the longer term, he says and adds: - We register a tightening demand-side and this is an early sign of a market about to turn.

Rong is satisfied with the group's achievements in a challenging year. - We have maintained a strong equity ratio, have good liquidity and have room to manoeuvre. The core activities are solid with good contract coverage, and we can live with fluctuating markets and, as a consequence, fluctuating results, he concludes.

GC Rieber Shipping's core activities are related to shipowning and ship management of offshore specialized vessels. These activities posted satisfactory results in the fourth quarter as well, while the group's value chain investments continue to deliver a negative profit contribution. - Our core activities perform well and we benefit from many vessels on long term contracts at good rates. Through the fleet renewal carried out in 2009, with acquisitions of several vessels at favourable prices, we are establishing a platform for further strengthening of earnings from this business, says Rong. He continues: - Our value chain investments within subsea and permanent monitoring are in an early phase and weak results are expected for these companies in 2010 as well. However, the co-operation we have established with HitecVision in Reef Subsea (50/50 joint venture between GC Rieber Shipping and HitecVision) will provide an improved platform for further development of the value chain investments within subsea.

The EBITDA in the fourth quarter amounted to NOK 44.4 million (NOK 51.8 million in Q4 08), of which the core activities contributed NOK 41.9 million. The operating loss in the quarter was NOK -18.0 million (a profit of NOK 15.4 million in Q4 08), following write-downs of NOK 37 million related to vessel equipment and building supervision costs on the two cancelled new build contracts (new buildings nos. 7037 and 7038) in the 51% owned companies Polar Marine I & II Pte Ltd.

Key figures in the fourth quarter 2009:

• Operating income of NOK 146.6 million (NOK 156.9 million in Q4 08)
• EBITDA of NOK 44.4 million (NOK 51.8 million)
• Normalised profit before tax was NOK -6.1 million (NOK 30.5 million)
• Liquids assets and net interest bearing debt of NOK 362 million and NOK 662 million, respectively, as at 31.12.2009
• Contract backlog of NOK 1,666 million as at 31.12.2009

About GC Rieber Shipping

GC Rieber Shipping's business within offshore/shipping includes ownership in specialized vessels, high quality marine ship management, project development and industrial portfolio management within the segments subsea, ice research and support, as well as marine seismic. The group has a unique competence on offshore operations in harsh environments and design, development and maritime operation of seismic vessels. Through strategic value chain investments the group has substantial knowledge and experience within offshore subsea and marine seismic.

GC Rieber Shipping owns and operates seven advanced multifunctional special purpose vessels for defined markets within subsea, ice research and support and marine seismic. Furthermore, GC Rieber Shipping has acquired two subsea IMR new buildings for delivery in 2010/2011. Through a joint venture of which GC Rieber Shipping owns 51%, the group has in addition contracted two new offshore vessels for delivery in 2010. The group's strategic value chain investments include the subsea services company Reef Subsea (50% shareholding) and the seismic company Octio Group (60% shareholding). GC Rieber Shipping is also in charge of marine ship management for seven seismic vessels owned by PGS, CGGVeritas and Fugro, as well as project management and building supervision for two advanced seismic new buildings for PGS.

The company is headquartered in Bergen with ship management companies in Sevenoaks (England), Singapore and Yuzhno-Sakhalinsk (Russia), which provides global presence. The company is listed on Oslo Børs with ticker RISH. Further information is available on the company's website: www.gcrieber-shipping.no.

GC Rieber Shipping