GC Rieber Shipping - Fourth quarter 2008

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

27 Feb 2009

GC Rieber Shipping posted a net profit of NOK 75.9 million in the fourth quarter 2008. The net profit for the full year 2008 was NOK 177.5 million. The net profit in the fourth quarter 2008 and the full year 2008 is affected by a reversal of last year's environmental funds provisions of NOK 43.9 million. This amount has been recognized as taxable income as at 31.12.2008, thus increasing the company's equity.  The company has a solid financial capacity with NOK 743 million in liquid assets and a contract backlog of NOK 1126 million. The board proposes a dividend of NOK 0.50 per share, corresponding to NOK 21.8 million.
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 agreements, says CEO Sven Rong, and mentions as an example: - We have a book equity ratio of 56%, high above the minimum requirement of 30%.
Rong 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: - 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 todays market. A short to medium term weakening of the market is also expected to give strategic opportunities, which we intend to take advantage of, says Rong.
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 intiative related to expansion in the value chain within oil service. - 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, Rong concludes.

Source: GC Rieber Shipping