President's views (in Swedish)



9 Month Report 2009
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1 january - 30 september 2009

9 Month Report

  • Net turnover SEK 488.1 (391.9) million
  • Profit after tax SEK –111.3 (55.8) million includes extraordinary items totalling SEK 179.3 million
  • Profit per share SEK –2.33 (1.17)
  • EBITDA of USD 15.1 (18.1) million
  • Available funds (including unutilised credit facilities) total SEK 585.4 (576.7)
    million
  • The forecast result before tax for 2009 amounts to SEK –100 million (–2.10 per share) and includes extraordinary items totalling SEK 179.3 million.
  • Business operations proceeded according to plan and generated, despite a very weak market, a profit of SEK 68.0 million for the whole period.
  • The Stena Progress was delivered at the end of Q3 and entered into a 5-year charter with Total and in October, the V-MAX tankers were redelivered to General Maritime.

President's views

During the third quarter, Concordia Maritime’s business activities continued to develop according to plan. The sale of all the company’s shares in General Maritime, which we announced in a press release on 28 August, negatively affected the result. Consequently, a revised forecast for the full year has been presented.

Comments on the result

During the third quarter, the tanker markets continued to be very weak. The freight rates on both the spot and the charter market continued to be low and showed no signs of improvement.

The fact that we have all our fleet signed to long-term charters means that, in the short term, we are less dependent on market trends. During the third quarter, the revenues from our contracts continued to be higher than those generated in the open market. The average freight rate for our fleet was about USD 20,000 per day, which can be compared with a freight rate of about USD 5,000 per day on the spot market and 3-year charter contracts currently generating approx. USD 12,000 per day.

In October, the two V-MAX tankers Stena Victory and Stena Vision were redelivered to General Maritime.

The company reports a return according to plan on its financial investments. However, the capital loss resulting from the sale of the shareholding in General Maritime has been charged to the income statement. (Read more about this on page 10.) On the positive side, the effect of our USD/SEK position amounts to SEK 193.8 million, which is reported in Other total comprehensive income.

Future prospects
Our assessment is that the market will remain weak for some time. One of the principal reasons for this is the very large growth of the fleet combined with overall lower oil extraction. Even if scrapping and order cancellations are expected to increase, the net growth of the fleet will still be substantial.

We have respect for the market situation, but we nevertheless feel that we are in a good position. The whole fleet is signed to long-term charters, which means that we have secured our cash flows for some years to come. This, in combination with an otherwise stable economy and a strong financial position, gives us the capacity to act swiftly if opportunities for new business deals arise.

Forecast for 2009
The company’s forecast for 2009 is a result before tax of SEK –100 million (SEK –2.10 per share). The forecast includes costs of a non-recurring nature amounting to USD –22.8 million (equivalent to SEK –179.3 million), which consist partly of the write-down of the holding in Weavering Capital and partly of the capital loss on the sale of the shares in General Maritime.

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