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First quarter 2016 Bergen 12 May 2016 12.05.2016 GC RIEBER SHIPPING 1
First quarter 2016Bergen 12 May 2016
12.05.2016 GC RIEBER SHIPPING1
Agenda
• Highlights Q1 2016
• Operational review
• Financial review
• Summary and outlook
12.05.2016 GC RIEBER SHIPPING2
“Polar Onyx”
Highlights first quarter
• Fleet utilisation of 46 percent
• Stable operation in a challenging market
• New contract for the «Polar King» from January 2017
• Continued focus on cost reduction
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Contract updates
• One year extension of bareboat charter for «RRS Ernest Shackleton» with British Antarctic Survey until August 2017
• New short-term contract for the «Polar King» with Reach Subsea
• New contract for the «Polar King» with Nexans Skagerrak AS
– Fixed period of 8.5 months
– Options for up to 16 months
– Commence in January 2017
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“RSS Ernest Shackleton”
Key figures
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‐36
103
25
‐400
‐94
‐450
‐350
‐250
‐150
‐50
50
150
250
Q115 Q215 Q315 Q415 Q116
224241
337
179
87
0
50
100
150
200
250
300
350
400
Q115 Q215 Q315 Q415 Q116
114134
251
‐108
‐9
‐150
‐100
‐50
0
50
100
150
200
250
Q115 Q215 Q315 Q415 Q116
REVENUESNOK million
EBITDANOK million
NET PROFITNOK million
Operational Review Q1 2016
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Contract backlog of NOK 732 million* per April 2016
47%43%
22%
0%
20%
40%
60%
80%
100%
From April 2016 2017 2018
156
295
112
169
0
100
200
300
400
From April 2016 2017 2018 2019‐21
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CONTRACT BACKLOG*NOK million
CONTRACT COVERAGE*Utilisation rate
* Excluding options
/ Current fleet
GC RIEBER SHIPPING
GC Rieber Shipping has been involved in
worldwide offshore exploration and
development with dynamically positioned subsea support vessels since the early 1980s
Polar Onyx Polar King Polar Queen
AVAILABLE FOR SHORT‐TERM ASSIGNMENTS UNTIL LATE 2016
CHARTERER CHARTERERCHARTERER*
Polar EmpressPolar Duke Polar Duchess Polar Marquis
COLD STACKED
CHARTERER CHARTERER CHARTERERCHARTERER
SUBSEA
SEISMIC
GC Rieber Shipping has owned and operated seismic vessels since the late 1960s and has extensive experience
from operations around the globe, including in the Canadian High
Arctic and Antarctica.
Polar PiltunPolar Pevek Ernest Shackleton Polar Baikal
CHARTERER CHARTERER CHARTERERCHARTERER
ICE / SUPPO
RT
Our company is one of very few specializing in the Arctic and Antarctic
shipping business, offering independent
and competitive services for scientific expeditions and logistics in these
demanding regions.
* from mid‐May 2016
AVAILABLE AVAILABLE
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AVAILABLE
AVAILABLE
Subsea
• Fleet utilisation 52 percent
– 63 percent in Q1 2015
– «Polar King» not on charter in the quarter. Charter agreements with Reach Subsea in Q3 2016 and with Nexans Skagerrak from January 2017
– «Polar Onyx» on charter from the beginning of February until early April
• Continued weak market
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KEY FIGURESNOK million
107 113
213
31
70
3249
155
‐23
13
‐50
0
50
100
150
200
250
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16
Operating income EBITDA
Marine Seismic
• Fleet utilisation 14 percent
– Discharge of contracts due to the bankruptcy of Dolphin Geophysical
• Two contracts in the spot market for «Polar Marquis» and «Polar Empress» in the quarter
– «Polar Duke» cold stacked in the period
• Challenging market
112126 124
144
12
7486 81
‐103
‐30
‐150
‐100
‐50
0
50
100
150
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16
Operating income EBITDA
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KEY FIGURESNOK million
Ice/ Support
• Fleet utilisation 100 percent
– 100 percent in Q1 2015
– EBITDA contribution of NOK 8.4 million including joint venture companies
• Market
– Generally stable development
5
2
0
4 5
87
15
17
8
0
5
10
15
20
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16Operating income EBITDA
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KEY FIGURESNOK million
Financial reviewQ1 2016
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Income statement
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NOK mill Q1 2016 Q1 2015
Operating income 86.8 223.9
EBITDA -9.0 114.0
EBIT -76.7 54.2
Net financial income and expenses -16.9 -89.8
Profit before tax -93.6 -35.6
Net profit in the period -93.7 -36.3Normalized profit before tax (1) -112.1 37.1
Earnings per share -2.15 0.26
(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and write‐downs.
Balance sheet per 31.03.2016
650 363
60
2 817
4 626
2 157
0
1 000
2 000
3 000
4 000
5 000
6 000
Assets Equity & Liabilities
Fixed assets
Other current assetsCash & liquid assets
Equity
Long‐term liabilities
Current liabilities
• Total balance NOK 5 337 million
• Equity ratio 40.4 percent
• Cash position NOK 645 million
• Net debt NOK 2 462 million
• Average duration of loan portfolio is 4.8 years
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NOK million
Outlook
• Market view short term– Increased oil price in 2016– Cost focus and limited exploration activity in the oil sector still affect
shipping industry – especially subsea and seismic segments
• Expected trends in segments– Subsea: Short term focus, price pressure and project delays– Marine Seismic: Cost focus and weak market– Ice/support: Stable and unchanged activity
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Summary
• Fleet utilisation of 46 percent
• Stable operation in a challenging market
• Continuous focus on reducing costs
• New contract for the «Polar King» from January 2017
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“Polar Marquis”
Disclaimer
This quarter presentation includes and is based, inter alia, on forward-looking information andstatements that are subject to risks and uncertainties that could cause actual results to differ.Such forward-looking information and statements are based on current expectations, estimatesand projections about global economic conditions, the economic conditions of the regions andindustries that are major markets for GC Rieber Shipping ASA and its subsidiaries. Theseexpectations, estimates and projections are generally identifiable by statements containingwords such as "expects", "believes", "estimates" or similar expressions. Important factors thatcould cause actual results to differ materially from those expectations include, among others,economic and market conditions in the geographic areas and industries that are or will bemajor markets for GC Rieber Shipping’s businesses, oil prices, market acceptance of newproducts and services, changes in governmental regulations, interest rates, fluctuations incurrency exchange rates and such other factors as may be discussed from time to time.Although GC Rieber Shipping ASA believes that its expectations and the information in thisPresentation were based upon reasonable assumptions at the time when they were made, it cangive no assurance that those expectations will be achieved or that the actual results will be as setout in this Presentation. GC Rieber Shipping ASA nor any other company within the GC RieberShipping Group is making any representation or warranty, expressed or implied, as to theaccuracy, reliability or completeness of the information in the Presentation, and neither GCRieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of theirdirectors, officers or employees will have any liability to you or any other persons resulting fromyour use of the information in the Presentation. GC Rieber Shipping ASA undertakes noobligation to publicly update or revise any forward-looking information or statements in thePresentation.
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