1 January – 31 December, 2008
Final accounts 2008
- Net sales: SEK 560.2 (457.2) million
- Profit after tax SEK 95.8 (62.9) million
- Profit per share after tax: SEK 2.01 (1.32)
- Proposed dividend: SEK 1.00 (1.00) per share
- EBITDA of USD 24.7 (13.5) million
- Available liquid funds SEK 507.5 (515.9) million
- Forecast for 2009: A profit before tax of USD 8 (SEK 70) million
- Long contracts provide stability in a weakening market
- Newbuilding program proceeding according to plan
Our business activities during the fourth quarter proceeded according to plan. Sales totalled SEK 168.1 (117.9) million and the result before tax was SEK 40.0 (31.4) million
Comments on the result
Both sales and the profit trend are in line with the forecast for the full year. The increase in sales and operating result is mainly due to the delivery of the Stena Perros and new contracts signed for the Stena Vision and the Stena Victory.
The fact that we posted a good profit, despite the current market situation, is a consequence of our strategy to sign our vessels to long contracts. We have a fleet that is generating stable revenues, which are higher than the freight rates on the spot market.
Future prospects
The market trend in the short term is difficult to forecast. Several factors point to a weaker market. The major challenge is the large number of vessels under construction with delivery set for 2009 and 2010. Theoretically, this should have dampening effect on prices. To this should be added the generally weak economic climate, which has already begun to have an impact on freight rates.
However, it is impossible to predict how deep and protracted the downturn will be. A prolonged weak market in combination with a poorly functioning credit market could, paradoxically, have a positive effect on the balance between supply and demand. In this situation, shipping companies with poor cash flows and/or little access to financing could find themselves facing acute problems. This, in turn, could lead to delayed deliveries or even annulled orders resulting in a more balanced growth of the fleet.
In the more long-term perspective, I am firmly convinced that there will continue to be a large demand for safe transportation of oil as a consequence of rising energy requirements and the comprehensive utilisation of oil and petroleum products. At Concordia Maritime, we will use our stable cash flows and strong financial position to take advantage of opportunities created by the current market situation.
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