Concordia Maritime - Oil should always travel first class

Definitions

Equity ratio

Equity expressed as a percentage of the balance sheet total.

Return on total capital

Earnings after net fi nancial items plus financial expenses as a percentage of average balance sheet total.

Return on capital employed

Earnings after net fi nancial items plus financial expenses as a percentage of average capital employed. Capital employed refers to the balance sheet total minus non-interest- bearing liabilities, including deferred tax liability.

Return on equity

Earnings for the year expressed as a per - centage of average equity.

Cash flow from operating activities

Earnings after net financial items plus depreciation minus tax paid (cash fl ow before change in working capital and investments and before effect of ship sales).

Profit after tax per share

Earnings for the year in relation to average number of shares during the operating year.

Cash flow per share

Earnings after net fi nancial items plus depreciation minus tax paid in relation to average number of shares during the operating year.

Equity per share

Equity in relation to the number of shares as of the accounting day.

P/E ratio

Share price on the accounting day in relation to profi t per share after tax.

Aframax

Or Long Range 2, LR2. Tanker of 80,000-120,000 DWT.

Barrel

Unit for trading oil. One barrel is the equivalent of around 159 litres.

Brent

Type of North Sea oil that functions as a commercial target.

Bunker, bunkering

The name for the ship’s fuel, i.e. the oil burnt in the ship’s machinery. Bunkering refers to the taking aboard of bunker.

Charterer

A cargo owner or the party leasing the ship. Charterer is also the professional term for shipping clerks or clerks at brokers that do business on the freight market.

Daily cost

Costs of the ship’s crew, insurance and maintenance.

Deadweight/dwt

The weight of the load, bunker and loose equipment the ship is able to carry.

Distance minute (nautical mile)

= 1,852 metres.

Freight rate

The agreed price expressed in USD per day.

Handysize

Ship of 20,000–40,000 DWT.

IMO

International Maritime Organization. The UN’s international regulatory maritime organisation.

Intermediate

Smaller ship of 10,000–20,000 DWT.

Intertanko

Organisation for independent tanker companies.

ISM

International Safety Management Code. Standardised regulations for organising companies in relation to ship safety and prevention of environmental pollution.

ISO 9002

Standard for quality-control system

ISO 14000

Standard for environmental management systems.

Knot

A unit of speed for nautical vessels. One knot=one distance minute per hour, i.e. 1.85 km/hour.

MARPOL

International convention under IMO that regulates pollution at sea.

MR

Medium Range. Tanker of approx. 40,000-50,000 DWT.

OPEC

Organization of the Petroleum Exporting Countries. The organisation for countries exporting petroleum fuel.

Panamax

Or Long Range 1, LR1. Tanker of 50,000-70,000 DWT.

Spot market

The part of the maritime market that leases ships for individual journeys.

Suezmax

Tankers of 120,000–165,000 DWT.

Time charter

The shipping company charters out its ships completed and crewed for a payment based on a certain sum per day or a certain sum per DWT and month. The party chartering the ship pays for bunker and port fees.

ULCC

Ultra Large Crude Carrier. Tankers over 320,000 DWT.

VLCC

Very Large Crude Carrier. Tanker of 200,000–320,000 DWT.