GC RIEBER SHIPPING - UPDATE NEWBUILDING PROGRAMME
02-11-2010
GC Rieber Shipping has an ongoing newbuilding programme related to fleet renewal. A brief status concerning the newbuildings is provided below.
GC Rieber Shipping's newbuilding programme encompasses five newbuildings with a total investment of approximately NOK 1.9 billion. Three subsea newbuildings and two high-capacity seismic newbuildings are expected to be delivered in the time period from Q1 2011 up to Q1 2012.
The two high-capacity seismic newbuildings 532 and 533 are owned by the 65% owned subsidiary Armada Seismic ASA and are being built at the Factorias Vulcano yard in Vigo, Spain. The total investment in the vessels is expected to reach NOK 850 million plus and is financed through equity and a long term mortgage loan of USD 90 million, which may be increased to USD 112 million providing long term employment. Armada Seismic took delivery of building no. 532 in June 2010. The vessel will be upgraded to a capacity of 12-14 streamers and the upgrade is expected to be complete in February/March 2011. The progress on building no. 533 has been limited, pending clarification concerning the financial situation of Factorias Vulcanos. The yard informs that it has initiated debt restructure proceedings and at the same time negotiating with the regional government and the shipyard association Pymar regarding pre-delivery financing for building no. 533. Based on a quick and positive clarification of the pre-delivery financing, we expect delivery of building no. 533 in the first quarter 2012. The vessels attract solid interest in the market and GC Rieber Shipping evaluates several employment alternatives for both 532 and 533.
Furthermore, GC Rieber Shipping has entered into an agreement with Otto Marine ("Otto") concerning dissolution of the two 51/49 % owned joint venture companies Polar Marine I and Polar Marine II. Polar Marine I and II originally owned four newbuildings (building no. 7037-7040) but during 2009 newbuilding 7037 and 7038 were cancelled due to substantial delays at the yard. According to the agreement with Otto, the joint ventures will be dissolved and Otto takes ownership of the vessels 7037, 7038 and 7039. At the same time the arbitrations related to 7037 and 7038 are withdrawn with no costs for GC Rieber Shipping. GC Rieber Shipping takes ownership of the IMR vessel 7040, with a total investment of slightly below NOK 300 million and contractual delivery at the end of February 2011.
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/support, as well as marine seismic. The group has a unique competence in offshore operations in harsh environments as well as design, development and maritime operation of seismic vessels. Through strategic value chain investments the group has substantial knowledge and experience within subsea and marine seismic.
GC Rieber Shipping currently owns six and operates seven advanced multifunctional special purpose vessels for defined markets within the subsea, ice/support and marine seismic segments. Furthermore, GC Rieber Shipping has two subsea IMR/CSV newbuildings for delivery early 2011 and mid 2011, as well as one IMR newbuilding for delivery in the first quarter 2011. GC Rieber Shipping also owns 65 % of Armada Seismic, which owns one high-capacity seismic vessel and has one newbuilding for delivery in the first quarter 2012. The group's strategic value chain investments include the subsea services company Reef Subsea (50 % stake) and the company Octio (73 % stake) which is in the business of permanent monitoring of existing oil fields. GC Rieber Shipping is also in charge of marine ship management for nine offshore vessels for other owners.
The company has its registered office and 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