As GC Reiber Shipping’s Q4 losses widened hit by the bankruptcy of Dolphin Geophysical, the company is slashing 25% of its onshore workforce.

The company reported a NOK400.1m ($46.7m) loss in Q4 compared to NOK201.4m loss in the same period a year earlier. GC Reiber attributed the larger loss to a NOK189.7m loss on account receivables due to the bankruptcy of Dolphin Geophysical, NOK132.8m impairment of fleet values and expensing of previously capitalised deferred tax assets of NOK64m.

Reviewing the quarter GC Reiber said it was a “continuously very challenging market with great uncertainty”.

Fleet utilisation in Q4 2015 fell to 73% compared to 100% a year earlier. The company said the bankruptcy of Dolphin Geophysical had had “significant impact” on its contract backlog which stood at NOK800m at the end of 2015, compared to NOK3.4bn a year earlier.

GC Reiber has forward contract coverage of 43% for 2016, 36% for 2017, and 22% for 2018.

The company is slashing its onshore workforce by 25% in the first half of 2016 and by the end of 2015 had cut 28% of its seafarers.

In light of the uncertain market situation, GC Rieber Shipping has a continued focus on adapting vessel and organisational operations to a considerably lower cost level in the year 2016.