Strategy in brief
- Long contracts provide stability in a weakening market All the vessels in the fleet were signed to fixed contracts. These longterm charters provide stability on a somewhat weakening market.
- Newbuilding program proceeding according to plan No new vessels were delivered in 2008. However, construction of the two P-MAX tankers to be delivered at the end of 2009 began. The remaining two vessels in the program will be delivered in 2010.
- Weaker trend towards end of year 2008 as a whole was a strong year for transportation of oil and refined petroleum products. Towards the end of the year, however, freight rates fell in both the MR and the VLCC segment.
- Falling prices in the shipbuilding and second-hand markets The strong shipbuilding market continued through much of 2008. The prices of all the different types of tankers continued to rise until the end of the third quarter. During the fourth quarter, however, the market weakened and prices in both the MR and the VLCC segment began to fall
- Events after 31 December 2008
Damage to a reduction gear on board the Stena Victory was detected in conjunction with a routine inspection at the beginning of February. This damage is similar to the damage detected on the Stena Vision in 2006. Repairing the Stena Victory’s reduction gear is expected to take much less time than in the case of the Stena Vision.
- Forecast for 2009
A profit before tax of approx. USD 8 million, equivalent to approx. SEK 70 million. This lower forecast has been made in view of the current market situation, the damage to the Stena Victory and the fact that four of our P-MAX tankers will be dry-docked during the year. These dockings represent a revenue shortfall of about USD 1 million.
Innovation and Performance
Our mission is to generate a profit by providing our customers with safe, cost-efficient tanker transportation based on innovation and performance.
Our customers
Concordia Maritime’s customers include some of the world’s largest oil and energy companies. Customer relations are characterised by partnership, cooperation and a long-term perspective.
Our cooperation partners
Concordia Maritime conducts its business activities in close cooperation with several companies in the Stena Sphere. This means that the company’s business activities can be conducted cost-effectively at the same time as its customers have access to the Stena Sphere’s knowledge base.
Our strengths
At Concordia Maritime, a deep understanding of the individual customer is combined with cuttingedge competence in the development and design of ships, shipbuilding, manning, chartering and commercial operation. The result is safe and efficient transportation.
Our market
The downturn in the market, which began in 2006, continued in 2007. Compared with 2006, freight rates in both the large tanker and product tanker markets were lower. The freight rates fell most in the spot market while in the time charter market they were only slightly lower than in 2006.
What we transport
The change in business activities implemented in recent years has resulted in a shift in focus from the transportation of crude oil to the transportation of refined petroleum products. The twelve tankers ordered in the last few years, and which are now in the process of being delivered, are all designed primarily to transport refined petroleum products such as petrol, diesel fuel and jet fuel. In addition to our own vessels, we have also chartered two crude oil tankers from the US shipping company Arlington Tankers.