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GC RIEBER BUYS CREW BOATS
By David Hughes
Published: Thu, 26 February 2009
NORWEGIAN offshore support specialist GC Rieber Shipping has bought two crew boats to operate out of Sakhalin in the Sea of Okhotsk in Russia. The two crew boats are expected to be finally converted and in operation from June 2009, with a total investment of about NKr90 (US$13m) million. The boats will commence immediately on 5-year charter agreements with Sakhalin Energy Investment Company. The charter agreements have a total contract value of approximately NKr145m. Rieber says in a statement: “The plan is to include the two boats in a 50/50 joint venture. GC Rieber Shipping currently operates the ice-breaker Polar Pevek (50% owned by GC Rieber Shipping) in the Sakhalin area. The crew boats will be an important addition to the company's current activities in Russia. The company made a Q4 operating income of NKr156.9m, compared to Nkr152.4m in Q4 2007 while EBITDA from continuing operations was Nkr51.8m, down from Nkr53.9m in Q4 2007)
CEO Sven Rong comments: “The company's liquidity is good, the gearing is low, and the financial risk related to a possibly long-lasting financial crisis is considered to be limited and manageable. We have considerable flexibility in relation to the covenants in our external loan We have a book equity ratio of 56%, high above the minimum requirement of 30%.” Rong says he is satisfied with the results for the fourth quarter 2008, while recognizing that the current financial and real economy crisis will result in a weaker development in the offshore subsea and seismic market segments short to medium term. He says: “Again we post solid results in line with our expectations, but we foresee a weaker market within the areas offshore subsea and seismic in 2009 and this will cause a significant reduction in the group's earnings in 2009. At the same time we have a strong financial capacity, which provides competitive advantages in today's market. A short to medium term weakening of the market is also expected to give strategic opportunities, which we intend to take advantage of.” The company says that the long term market outlook within the company's segments - offshore subsea, marine seismic and ice/research - is good, and the company will continue the strategic initiative related to expansion in the value chain within oil service. Rong says: “The oil price and activity will increase in the longer term as a consequence of declining oil reserves and our strategy is adapted to this scenario.”