1 January–30 June 2016

Total income, Q2: SEK 280.8 (285.6) million
6 months: SEK 544.4 (546.6) million
EBITDA, Q2: SEK 57.2 (105.2) million
6 months: SEK 160.6 (192.5) million
Result before tax, Q2: SEK 12.4 (44.0) million
6 months: SEK 45.8 (72.2) million
Result per share after tax, Q2: SEK 0.26 (0.92)
6 months: SEK 0.96 (1.51)
P-MAX vessel Stena Polaris chartered out. The contract is for one year and runs from May 2016.
Agreement reached on settlement of the arbitration dispute. Cost and payment of USD 9.25 million during the second quarter.
IMOIIMAX-related additional payment of USD 5 million received during the second quarter.
Positive earnings effect and payment of SEK 23 million from completed USD hedge position during the second quarter.

Key ratios

	Q2 (Apr–Jun)		6 months (Jan–Jun)		Full year
	2016	2015	2016	2015	2015
Total income, SEK million	280.8	285.6	544.4	546.6	1,086.6
EBITDA, SEK million	57.2	105.2	160.6	192.5	423.8
EBITDA, USD million	7.0	12.5	19.3	23.1	50.3
Operating result, SEK million	0.7	52.3	45.1	91.4	209.6
Result after tax, SEK million	12.4	44.0	45.8	72.2	173.9
Equity ratio, %	44	42	44	42	43
Return on equity, %	8	2	8	2	10
Available liquid funds, including unutilised credit facilities, SEK million	385.9	229.5	385.9	229.5	367.1
Result per share after tax, SEK	0.26	0.92	0.96	1.51	3.64
Equity per share, SEK	39.83	36.34	39.83	36.34	39.15

Scroll to top

Kim Ullman

CEO, Concordia Maritime

Good income despite a declining market

Despite a gradually deteriorating market, we are able to report a profit before tax of SEK 12.4 (44.0) million for the quarter. Operating cash flow (EBITDA) was SEK 57.2 (105.2) million, corresponding to USD 7.0 (13.1) million. The cost of settlement of the Stena Primorsk dispute was largely offset by a completed USD hedge position and additional non-recurring income related to IMOIIMAX vessels.

During the second quarter, the tanker market in general was affected by a seasonal decline, which was relatively strong this year, particularly in the heavy products segment. Despite this, the utilization rate and income for our vessels were still good.

We continued our ongoing efforts to optimise fleet disposition during the quarter. At the end of April, we extended the contract for the P-MAX tanker Stena Polaris. The contract, which comes into effect in May 2016, is for one year. The contractual partner is one of the world’s largest oil and gas companies. The transaction means that we now have contracted out 6 of our 10 P-MAX tankers. Three of them are employed on consecutive voyage charters in the Far East. The other three are employed on pure time charter contracts, which were signed during a good market situation at the beginning of the first quarter. All of the contracts are fully in line with our chartering strategy. With these arrangements, we are able to ensure continuous employment for the vessels. Time charter contracts also generate good solid income for the vessel during the period in question, while we balance our exposure to the spot market.

Settlement of the arbitration dispute

During the quarter, agreement was reached on settlement of the dispute that arose in connection with Stena Primorsk’s grounding in the Hudson River in December 2012. Under the agreement, Concordia Maritime has paid USD 9.25 million to the counterparty. The agreement means that we can now put this dispute behind us.

Market outlook for the second half of 2016

Our view of the market is largely unchanged. In the long term, we expect the low price of oil and ongoing changes in the global refinery infrastructure to continue contributing to underlying stable demand for transportation of both oil and refined oil products. In a shorter perspective, we believe that the combination of continuing high inventory levels and an increasing number of deliveries of new ships will have a continuing negative effect, which we have already begun to see. Looking at 2016 as a whole, we expect generally lower levels than in 2015, but higher than in 2014.