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Fourth quarter 2015Bergen 19. February 2016
19.02.2016 GC RIEBER SHIPPING1
Agenda
• Highlights Q4 2015
• Operational review
• Financial review
• Summary and outlook
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“Polar Onyx”
Highlights fourth quarter
• Stable operation in a challenging market
• Fleet utilisation of 73 %
• Bankruptcy of Dolphin Geophysical
• Impairment of fleet of NOK 132.8
• Further reduction of costs
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Dolphin Geophysical
• Bankruptcy of Dolphin Geophysical in December 2015
– Charter agreements for «Polar Marquis», «Polar Duchess» and «Polar Empress» terminated
– NOK 189.7 million in outstanding receivables
– Significant impact on backlog and quarterly results
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Impairment of vessels
• Impairment of the fleet
– Very challenging offshore market
– Market values reduced significantly
– NOK 132.8 million in impairment charge
• Significant impact on quarterly results
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Cost programme
• Adapting to a challenging market situation
• Cost reducing measures
– Renegotiation of contracts
– More cost efficient work processes
– Adjustments in organization
• Headcount reduction due to lower activity level
– Onshore with 25 percent with effect from first half of 2016
– Offshore with 28 percent from the end of 2015
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Post-quarter events
• Extension of bareboat charter for «RRS Ernest Shackleton» with British Antarctic Survey
– One year duration, effective from August 2016
– Remains 2 options of annual extension of the charter
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“RSS Ernest Shackleton”
Key figures
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-201
-36
103
25
-400-450
-350
-250
-150
-50
50
150
250
Q414 Q115 Q215 Q315 Q415
258
224241
337
179
0
50
100
150
200
250
300
350
400
Q414 Q115 Q215 Q315 Q415
130114
134
251
-108-150
-100
-50
0
50
100
150
200
250
Q414 Q115 Q215 Q315 Q415
REVENUESNOK million
EBITDANOK million
NET PROFITNOK million
Operational Review Q4 2015
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Contract backlog of NOK 789 million* per January 2016
43%
36%
22%
0%
20%
40%
60%
80%
100%
From January 2016 2017 2018
239256
119
180
0
100
200
300
400
From January 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
AVAILABILE
CHARTERER CHARTERERCHARTERER*
Polar EmpressPolar Duke Polar Duchess Polar Marquis
COLD STACKED
CHARTERER CHARTERER CHARTERERCHARTERER
SU
BS
EA
SE
ISM
IC
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.
PiltunPolar Pevek Ernest Shackleton Baikal
CHARTERER CHARTERER CHARTERERCHARTERER
ICE
/ SU
PP
OR
T
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 January 2016
AVAILABILEShort term
contract AVAILABILE
Subsea
• Fleet utilisation 44 percent
– 100 percent in Q4 2014
– «Polar Onyx» not on charter in the quarter. Charter agreement with MPL from January 2016
– «Polar King» not on charter part of the quarter
• Market
– Uncertain and “on hold”
– Sustained price pressure and time-consuming decision processes
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KEY FIGURESNOK million
151
107 113
213
31
56
3249
155
-23-50
0
50
100
150
200
250
Q4 14 Q1 15 Q2 15 Q3 15 Q415
Operating income EBITDA
Marine Seismic
• Fleet utilisation 75 percent
– 100 percent in Q4 2014
– «Polar Duke» cold stacked in the period
– EBITDA affected by bankruptcy of Dolphin Geophysical
– Fleet impairment
• Market
– Turbulent, price pressure and weak earnings
102112
126 124144
6274
86 81
-103
-150
-100
-50
0
50
100
150
Q4 14 Q1 15 Q2 15 Q3 15 Q415
Operating income EBITDA
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KEY FIGURESNOK million
Ice/ Support
• Fleet utilisation 100 percent
– 100 percent in Q4 2015
– EBITDA contribution of NOK 17.4 million including joint venture companies
• Market
– Generally stable development6
5
2
0
4
12
8
7
15
17
0
5
10
15
20
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Operating income EBITDA
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KEY FIGURESNOK million
Financial reviewQ4 2015
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Income statement
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NOK mill Q4 2015 Q4 2014 FY 2015 FY 2014
Operating income 179.0 258.5 980.2 881.5
EBITDA -108.0 130.2 398.2 453.5
EBIT -309.5 78.6 -96.0 280.2
Net financial income and expenses -31.0 -281.0 -150.9 -358.6
Profit before tax -340.5 -202.4 -246.9 -78.5
Net profit in the period -400.1 -201.4 -307.7 -80.1
Normalized profit before tax (1) -51.2 104.2 143.6 253.8
Earnings per share -11.28 -4.61 -7.05 -1.83
(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and write-downs.
Balance sheet per 31.12.2015
631 408
47
2882
4994
2381
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 5 672 million
• Equity ratio 42.0 percent
• Cash position NOK 631 million
– Available revolving facility of USD 16 million
• Net debt NOK 2 569 million
• Average duration of loan portfolio is 5 years
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NOK million
Outlook
• Market view short term
– Low oil price, further reductions in the investment activity
– Weak oil sector affects shipping industry, especially subsea and seismic
• Expected trends in segments
– Subsea: Short term focus, price pressure and challenging market
– Marine Seismic: Challenging market and weak results
– Ice/support: Stable and unchanged activity
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Summary
• Very challenging markets with great uncertainty
• Stable operation
• Continuously focus on reducing costs
• Bankruptcy of Dolphin Geophysical
• Fleet impairment
19.02.2016 GC RIEBER SHIPPING 19
“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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