GC Rieber Shipping Earns Well

By Aiswarya Lakshmi August 21, 2015

GC Rieber Shipping has more than doubled its net profit for the second quarter and recorded a year-on-year increase in profit on more vessels in operations and currency gains. However it has warned of a continued focus on shorter contracts in the future.

In the second quarter of 2015, GC Rieber Shipping had a profit of NOK 103.4 million ($12.5 million), compared with a profit of NOK 43.5 million ($5.2 million) in the corresponding period in 2014.

However, profit for the first half year was NOK 67.1 million ($8.1 million), compared with NOK 84.7 million ($10.2 million) in the first half of 2014.

Furthermore, GC Rieber Shipping had operating income of NOK 240.8 million in the second quarter 2015, up from NOK 214.4 million in the corresponding quarter of 2014, on previously mentioned higher rates and more vessels in operation as well as currency gains.

"The underlying operations in the company have been positive in the second quarter of 2015. Our contract coverage is good, however the current market situation in the subsea and seismic segments is challenging and uncertain due to the drop in oil prices and subsequent spending and activity levels", says CEO Irene Waage Basili.

The group took delivery of the new advanced seismic vessel Polar Empress, which entered directly on a five-year contract with Dolphin Geophysical. In the beginning of June, GC Rieber Shipping sold the CSV Polar Prince.

In the second quarter, GC Rieber Shipping also entered into a new five-year charter agreement with Sakhalin Energy Investment Company Ltd for the crewboats "Polar Baikal" and "Polar Piltun.

GC Rieber Shipping has a fleet of 11 vessels within the segments subsea, marine seismic and ice/support. The company also operates two additional vessels. The company reported total fleet utilization of 89 percent, compared to 94 percent in the same period last year.