Low fleet utilization hurts GC Rieber Shipping

Norwegian offshore shipowner GC Rieber Shipping had a total fleet utilization of only 45 percent for the quarter which reflected negatively on the company’s financial results for the second quarter 2016. For comparison, fleet utilization was 89 percent in the second quarter of 2015.

GC Rieber said on Wednesday that the company’s net loss for the quarter amounted to NOK 454 million ($54.5 million). During the same period last year, GC Rieber recorded a profit of NOK 103 million ($12.4 million).

Operating income also decreased by nearly NOK 200 million. The company recorded operating income of NOK 49.4 million in the quarter while last year’s second quarter ended with NOK 240 million.

The negative result in the second quarter 2016 was mostly due to  the impairment of the fleet of NOK 335.5 million and low fleet activity in the oil related segments of subsea and marine seismic with a fleet utilization of 46 percent and 13 percent respectively.

Irene Waage Basili, CEO of GC Rieber, said: “The results in the second quarter are affected by the significant impairment of the fleet. On the positive side we are pleased recently to have been awarded several short-term contracts, but nevertheless expect the current market situation in the offshore segments to remain challenging.”

GC Rieber Shipping has recently secured new charter contracts for the Polar Onyx with Technip Angola, the Polar Marquis with Black Sea Oil & Gas, Polar Empress with Russia’s Sovcomflot subsidiary OOO SCF Geo, and for Polar Queen with Senvion.

Offshore Energy Today Staff

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