President's View (In Swedish)


3 Month Report 2009
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1 Jan–31 March 2009

3 Month Report 2009

  • Net sales: SEK 178.3 (132.7) million
  • Profit after tax SEK 0.4 (20.4) million
  • Profit per share: SEK 0.01 (0.43)
  • EBITDA of USD 5.9 (6.2) million
  • Available liquid funds (including unutilised credit facilities) SEK 712.5 (595.5) million
  • Equity per share amount to SEK 39.99 (at year end 2008, 41.21)
  • Forecast for 2009: SEK 45 million, corresponding to SEK 0.94 per share
  • Business operations are proceeding according to plan, with the exception of the damage to one of the Stena Victory’s reduction gears.
  • The value of Weavering Capital has been charged to the result.

President’s view

Our business activities are developing according to plan, with the exception of the damage to one of the Stena Victory’s reduction gears. Total sales during the period amounted to SEK 178.3 (132.7) million with an EBITDA of USD 5.9 (6.2) million

Comments on the result
The first quarter produced a small but positive result despite a weak market and a large write-down of the value of a fund. The time-charter contracts generated better than expected revenues and the vessels’ operating costs have so far been somewhat lower than forecast.

The lower result is mainly due to the write-down of the value of the fund share in the British hedge fund company Weavering Capital. On 31 December 2008, Concordia Maritime’s share in the fund amounted to USD 3.6 million.

Based on what Concordia Maritime has learned from the fund’s liquidator, it is felt that there is little chance of the company recouping the investment. The write-down of the whole investment in the fund has been charged to the result for the first quarter of 2009.

Despite the size of the write-down, it is important to emphasise that this does not affect the company’s financial position, nor does it affect the newbuilding program or our short-term and long-term capacity to act.

Future prospects
The market for the transport of oil and petroleum products weakened still further during the period. The main driving forces behind this include overall low freight volumes, limited arbitrage trade across the Atlantic and a larger number of vessels.

Several factors point to a continuing weak market for some time to come. This could enable us to use our stable cash flows and strong financial position to take advantage of opportunities for new business deals.

We are continuously working to minimise the company’s risk exposure, for example, to exchange rate fluctuations. As part of this work, we re-entered into a so-called equity hedge, which reduces the impact on equity of fluctuations in the USD/SEK exchange rate. We have also increased our interest rate hedging.

Changed forecast for 2009
As reported earlier, the write-down of the investment in Weavering Capital has resulted in a lowering of the forecast for 2009. The new forecast for 2009 is a result before tax of SEK 45 million, which is equivalent to SEK 0.94 per share (the previous forecast was a result of SEK 70 million equivalent to SEK 1.47 per share).

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