1 January - 31 December 2007
Final Accounts
- Net sales: SEK 457.2 (381.2) million
- Result after tax SEK 62.9 (51.9) million
- Result per share after tax: SEK 1.32 (1.09)
- Proposed dividend: SEK 1.00 (1.00) per share
- Despite a weak market, the product tanker segment reports an operating result of SEK 13.7 million for the fourth quarter (full year: SEK 85.7 million). The large tanker segment reports an operating result of SEK 0.6 million (full year: SEK -40.7 million). During the year, non-recurring costs amounting to SEK -27.7 million were charged to the large tanker segment
- Forecast for 2008: A profit before tax of approx. USD 11 million, corresponding to approx. SEK 70 million or SEK 1.47 per share. The market in 2008 is expected to be weaker than in 2007.
President’s views
The construction of the new fleet of P-MAX tankers proceeded fully according to plan in 2007. The P-MAX tanker Stena Perros, which is no. 6 in the series of ten vessels, was delivered at the beginning of December and directly entered its 5-year charter with TOTAL. The tanker was delivered two months earlier than originally planned.
Both shipbuilding prices and second-hand prices of product tanker tonnage continue to be high. The market value of the existing fleet is currently estimated by us to exceed its book value by at least USD 125 million.
The management and operation of the P-MAX tankers functioned smoothly during the year and generated a cash flow of USD 23.1.
It is worth pointing out that all of the company’s delivered vessels are signed to charters with a guaranteed minimum income. Some of the charters include profit-sharing clauses. Despite a weak market in the fourth quarter, with only minimum income related to profit sharing, an EBITDA 1 of USD 5.3 million was generated in the segment.
The weakening market in the fourth quarter shows little sign of improvement and the average freight rates in 2008 are expected to be below the rates in 2007.
In 2008, Concordia Maritime expects to generate an EBITDA *) of approx. USD 26 million for all the company's activities and a ewsult before tax of approx. USD 11 million.