CONCORDIA Maritime, the Oslo-listed Swedish tanker operator, has recorded a profit after tax for 2008 of Skr95.8m ($11m), up Skr32.9m from 2007.
Earnings before interest, taxes, depreciation and amortization for 2008 were up $11.2m to $24.7m.
The company, which is majority owned by the Gothenburg-based Stena Group, has cited its strategy of signing vessels on long term charters with oil majors for its increased sales and operating results.
The delivery of Stena Perros, the sixth of its fleet of 65,200 dwt P-Max tankers, has contributed to the increased earnings, as has the renewal of long term contracts for its two very large crude carriers which have had their charters renewed until the end of 2009 and 2010 respectively.
All its other vessels are on long term charters until 2011 and beyond.
Concordia is expecting the delivery of two more P-Max vessels in 2009, with both already secured on charters for at least three years.
However despite the securing of charters for its fleet, Concordia Maritime is forecasting a lower result for 2009, at Skr60m ($8m), reflecting its opinion of the market downturn.
“The market trend in the short term is difficult to assess,” said Concordia president Hans Norén. “The major challenge is the large number of vessels under construction with delivery set for 2009 and 2010.”
However he believes that while this and a weak market will impact freight rates, the long term prospects could be beneficial for Concordia. A prolonged weak market with poor credit facilities could have a positive impact on supply and demand as owners with weak cash flows or poor access to credit face acute problems.
This he said could lead to delayed deliveries and annulled orders, resulting in a more balanced growth of the world fleet.
“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,” he added.
The company reported available liquid funds of Skr507.5m