Quarterly Report • Nov 12, 2014
Quarterly Report
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| Quarter 3 (Jul–Sep) |
9 months (Jan–Sep) |
Full year |
|||
|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | 2013 | |
| Total income, SEK million | 104.0 | 125.4 | 405.4 | 372.1 | 467.8 |
| EBITDA, SEK million | 22.3 | 45.5 | 160.5 | 135.5 | 144.7 |
| Operating result, SEK million |
–13.9 | 9.2 | 54.2 | 27.4 | 0.4 |
| Result after tax, SEK million |
–27.0 | 0.6 | 25.3 | 2.0 | –28.8 |
| Result per share, SEK | –0.57 | 0.01 | 0.53 | 0.04 | –0.60 |
| EBITDA, USD million | 2.8 | 6.9 | 24.0 | 20.8 | 22.2 |
| Available liquid funds1), SEK million |
358.3 | 358.7 | 358.3 | 358.7 | 242.1 |
1) Including unutilised available credit facilities.
Concordia Maritime is an international tanker shipping company. Our focus is on cost-effective freight and safe transportation – primarily of refined petroleum products and vegetable oils. The company's B shares were admitted to trading on Nasdaq OMX Stockholm in 1984.
To provide our customers with safe and cost-efficient tanker transportation based on innovation and performance.
To make opportunistic investments in versatile vessels and gain financially from fluctuations in their values.
To be our customers' first choice for safe, innovative and efficient tanker transportation, which will result in good profitability, steady growth and financial stability.
Our 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 main focus is on the transportation of refined petroleum products and vegetable oils. As a complement to this focus, we are also active in the transportation of crude oil.
Our business and income model consists of providing vessels to customers in need of safe and cost-efficient transportation of oil and petroleum products. Income is generated mainly by chartering out vessels (spot or time charters), profit-sharing clauses in charters and the sale of ships.
| CEO's overview | 3 |
|---|---|
| Business activities | 4 |
| Financial summary | 7 |
| Other information | 9 |
| Financial statements | 11 |
After some weak months in the summer, the overall tanker market took an upward turn during the third quarter. The trend is in line with our earlier assessment of a gradual strengthening of the market in 2014 and 2015. However, the upturn is from a low level, which means we have reported a loss of SEK –23.1 (–1.1) million before tax for the third quarter of 2014. Operating cash flow (EBITDA) was SEK 22.3 (45.5) million, corresponding to USD 2.8 (6.9) million.
The market for transportation of petroleum products rose considerably in the third quarter of 2014. Within our segments, the rates rose by an average of over 20 percent compared with the previous quarter.
Looking at our own operations, ten out of the total eleven vessels in the fleet were employed on the spot market during the period. All performed well without any mishaps and generated income in line with the overall market. Average income for the P-MAX fleet during the quarter was USD 13,300 per day.
Demand for transportation of refined petroleum products rose by about 3 percent during the first nine months of 2014, which is lower than we expected at the beginning of the year. After a weak second quarter, we have seen increasing volumes and rising rates. And this trend, which is in line with our forecasts, has continued – even after the end of the quarter.
Several factors suggest that the market will continue to move in a positive direction in 2015 and 2016. Among the main indicators are the large-scale changes now taking place in terms of the global refining capacity in Asia. We expect the trend to continue in the period ahead as more and more highly efficient refineries start production. Examples include the strongly export-oriented refineries Orissa Paradip in India and Yanubi Yasref in Saudi Arabia, which should be operational by the end of this year after relatively long delays in start up.
Overall, this is expected to result in increased exports of refined products, which will generally benefit all product tankers.
We continued our work on maximising vessel utilisation during the period. A fundamental aspect of this strategy is to concentrate employment on trades and cargo systems where the unique properties of the P-MAX vessels can be fully exploited. The collaboration with ExxonMobil is a good example of this strategy. The contract covering Stena Provence and Stena Polaris has worked very well and discussions on extending and possibly expanding the collaboration are currently in progress. The vessels are used for the transportation of refined petroleum products in the Asia Pacific region. This is where the P-MAX vessels' extremely shallow draft is particularly advantageous. The design and load capacity makes it possible to transport large volumes on the same trip, which contributes to increased efficiency and better transport economy for the customer, while generating considerably higher income for us.
The contract with Shell expired during the period. This has been a productive partnership, and from our respective positions we are now considering the potential for other forms of cooperation in the future. After the reporting period, Total announced that it does not intend to exercise the option to extend the Stena Paris contract. This is because Total's cargo basis has changed.
Our overall goal remains to achieve a stable and sustainable level of profitability for the entire fleet. Success is dependent on the market continuing to strengthen from its present level. Our view here is basically unchanged: a continuing moderate but stable strengthening in 2015 followed by an acceleration in 2016.
In the current weak market, it is our ambition to exceed the world market index and our peers in terms of earnings for every single quarter. To assist us, we have a clear strategy, a clear focus and a unique network of partners. These will benefit us as we now approach the conclusion of 2014.
Kim Ullman CEO
The process of aligning the fleet with the new employment strategy continued during the third quarter. At the end of the period, 10 of the fleet's total 11 vessels were employed on the spot market. The average income for the fleet was in line with the market in general during the quarter.
After a weak spring and summer, the markets for transportation of refined petroleum products began to recover in the third quarter, albeit from low levels. A strong increase in exports from the United States and production start-ups at new refineries, notably in the Middle East, were among the main drivers.
Our ten 65,200 dwt P-MAX tankers are the backbone of our modern, safe and efficient fleet. Apart from Stena Paris, all vessels in the P-MAX fleet are employed on the spot market under agreements with Stena Bulk, Stena Weco and ExxonMobil.
Stena Paris sails on one of Total's special routes from Southeast Asia to Polynesia, where her extremely shallow draft is of particular benefit. The agreement with Total extends until the end of January 2016.
The average income for the P-MAX fleet was in line with the overall market average during the third quarter, at
approx. USD 13,300 per day. Average income for the light products segment was USD 12,600 per day. Average income for the dirty products segment was USD 13,900 per day.
The suezmax tanker Stena Supreme (158,000 dwt) is employed on the spot market via Stena Sonangol Suezmax Pool, controlled by Stena Bulk and the Angolan state oil company Sonangol. The pool is a long-time market leader in terms of suezmax tanker income.
The market recovered in the third quarter, with rates significantly higher than in the previous quarter. Average income for Stena Supreme was USD 24,000 per day, compared with the market average of approx. USD 23,300 per day.
The scheduled drydocking for Stena Progress took place during the quarter. The inspection went according to both plan and budget.
KEY RATIOS
| Full | |||
|---|---|---|---|
| 9 months (Jan–Sep) | year | ||
| 2014 | 2013 | 2013 | |
| EBITDA, SEK million | 160.5 | 135.5 | 144.7 |
| Operating result, SEK million |
54.2 | 27.4 | 0.4 |
| Available liquid funds, including unutilised credit facilities, SEK million |
358.3 | 358.7 | 242.1 |
| Result per share after tax, SEK |
0.53 | 0.04 | –0.60 |
| EBITDA per share, SEK | 3.36 | 2.83 | 3.03 |
| Dividend per share, SEK | 0.501) | ||
| Equity per share, SEK | 30.9 | 27.24 | 27.07 |
| Equity ratio, % | 43 | 38 | 38 |
| Growth in equity, % | 14 | –2 | –3 |
| Return on equity, % | 0 | 0 | –2 |
1) Refers to the dividend paid as decided at the Annual General Meeting in May 2013
| Employment | Partner/customer | |
|---|---|---|
| P-MAX | ||
| Stena Premium | Spot (light) | Stena Weco |
| Stena Polaris | Spot (light) | Stena Weco |
| Stena Performance | Spot (light) | Stena Weco |
| Stena Provence | Spot (light) | Stena Weco |
| Stena Progress | Spot (light) | Stena Weco |
| Stena Perros | Spot (heavy) | Stena Bulk |
| Stena President | Spot (heavy) | Stena Bulk |
| Stena Primorsk | Spot (heavy) | Stena Bulk |
| Stena Penguin | Spot (heavy) | Stena Bulk |
| Stena Paris | Time charter (light) |
TOTAL |
| Suezmax | ||
| Stena Supreme | Spot | Stena Sonangol Suezmax pool |
| IMO2MAX | ||
| Stena Image | Delivery Q2 2015 | Stena Weco |
| Stena Important | Delivery Q4 2014 | Stena Weco |
Source: Clarksons "Average MR Clean Earnings" / "Average Panamax Dirty Earnings"
| Number of vessels |
Average income, Concordia Maritime |
Average income, market | ||||
|---|---|---|---|---|---|---|
| USD per day | Q3 2014 | Q3 2014 | Q3 2013 | Q3 2014 | Q3 2013 | |
| Product tankers | ||||||
| Light products | 5 | 12,600 | 12,500 | 9,800 | 10,600 | |
| Heavy products | 4 | 13,900 | 14,800 | 16,400 | 9,600 | |
| Suezmax | 1 | 24,000 | 18,400 | 23,300 | 11,700 |
The newbuilding program, comprising the two product and chemical tankers (50,000 dwt) that were ordered in 2012, is continuing. Due to further delays, the planned deliveries of the vessels have been postponed by about three months and are now scheduled for the second and fourth quarters of 2015. In view of the prevailing marketconditions, this is not expected to have any adverse effect on Concordia Martime's results.
The two vessels are part of a series being designed with Stena Bulk and Stena Weco, and they are being developed by Stena Teknik and Guangzhou Shipyard International in China. The concept is called IMO2MAX. The orders, which were placed during a low, favourable price situation, are the first step in our new investment in the future and an important part of our long-term process of expanding the fleet.
The tankers will be among the most sophisticated in the market and at the forefront in terms of both energy efficiency and cargo flexibility. The plan is to employ them on the spot market within the framework of the cooperation with Stena Weco.
At the end of June, the price of a standard product tanker was about USD 37 million. The price of an IMO2 class MR tanker like the IMO2MAX vessels we have ordered was about USD 40 million. This is about 15 percent higher than when we placed our order with the shipyard in 2012. The price of a standard suezmax tanker at the end of the quarter was about USD 66 million.
The charts show the value at the end of each period and refer to standard vessels. Source: Clarkson
| USD millions | Q3 2014 |
Q2 2014 |
Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
|---|---|---|---|---|---|---|---|---|
| P-MAX, timecharter1) | 0.4 | 1.6 | 2.64) | 2.4 | 4.3 | 3.5 | 4.9 | 5.9 |
| P-MAX, spot | 2.2 | 0.5 | 3.7 | –0.2 | 2.4 | 1.7 | 2.4 | 1.8 |
| Panamax | 0.0 | 11.95) | 1.1 | 0.9 | 0.8 | 1.4 | 1.3 | 1.1 |
| Suezmax | 1.3 | 0.6 | 2.1 | 0.9 | 0.8 | 0.6 | 0.7 | 0.4 |
| Admin. and other | –1.1 | –1.4 | –1.5 | –2.63) | –1.4 | –1.3 | –1.3 | –1.2 |
| Total | 2.82) | 13.22) | 8.02) | 1.42) | 6.92) | 5.92) | 8.02) | 8.02) |
1) 0% of accumulated income is attributable to profit sharing.
2) The company reports depreciation of drydock as an operating cost. This was SEK 3.4 million for Q1 2014, SEK 3.7 million for Q2 and SEK 4.4 million for Q3. 3) For Q4 2013, CEO termination benefits of USD 1.1 million are included.
4) Includes one-time payment of USD 1.3 million for redelivery of Stena Progress. 5) Includes one-time payment of USD 3.6 million for lost charter income in jointlycontrolled entities: Stena Poseidon and Palva. Includes result from sale of shares in jointly-controlled entities (vessels) of USD 8.6 million.
Equity per share was SEK 30.90 (27.24).
The parent company's functional currency is SEK, although the majority of the transactions in the Group are in USD. The Group's result is generated in USD, which means the result in SEK is a direct function of the SEK/USD exchange rate trend.
The accumulated exchange differences, which are recognised in equity, amounted to SEK 177.5 (10.2) million. The changes are recognised in equity through OCI.
The company has entered into interest rate swaps totalling USD 100 million to protect itself against interest rate fluctuations They are structured in such a way as to cover approx. 30 percent of anticipated future borrowing within existing credit facilities and expire in 2015. At the end of the third quarter, the value of these contracts was SEK –7.8 (–23.3) million. The change is recognised in the hedging reserve through OCI.
Investments during the period January to September amounted to SEK 33.9 (34.5) million and relate to advance payments for IMO2MAX vessels, with delivery of the first of these scheduled for the beginning of 2015.
The Group's assets are assessed on a six-monthly basis to determine whether there is any indication of impairment. The fleet is defined as a cash-generating unit, and an impairment loss is recognised when the carrying amount of an asset or cash-generating unit exceeds its recoverable amount. The recoverable amount is the higher of fair value (external valuations) and value in use (future discounted cash flows). An impairment loss of USD 60 million was recognised for the fleet on 30 June 2012. Impairment testing of asset values at 30 September 2014 did not indicate any impairment.
| Quarter 3 | 9 months (Jan–Sep) | |||
|---|---|---|---|---|
| SEK millions | 2014 | 2013 | 2014 | 2013 |
| Total income | 104.0 | 125.4 | 405.4 | 372.1 |
| Operating result | –13.9 | 9.2 | 54.2 | 27.4 |
| Result after financial items |
–23.1 | –1.1 | 29.2 | –4.0 |
| Result per share after tax, SEK |
–0.57 | 0.01 | 0.53 | 0.04 |
| SEK millions | 30 Sep 2014 |
30 Sep 2013 |
|---|---|---|
| Available liquid funds1) | 358.3 | 358.7 |
| Interest-bearing liabilities | 1,792.2 | 1,959.9 |
| Equity | 1,474.9 | 1,300.3 |
| Equity ratio, % | 43 | 38 |
1) Includes unutilised available credit facilities.
Of our fleet of 11 vessels, one vessel was chartered out on a fixed contract and 10 were employed on the open market, which means that income is affected by the seasonal variations that occur in tanker shipping.
The number of employees in the Group at 30/09/2014 was 405 (392), 399 (386) of whom were seagoing employees.
The bond portfolio was sold on 31 March 2014. The sale proceeds were received in early April. The bond portfolio was previously classified as an available-for-sale financial asset, meaning that it was measured at fair value with changes in value recognised in OCI and accumulated as a component of equity. This means that the cumulative effects of previous fair value changes are also transferred to financial net. The total value of the bond portfolio on the sale date, 31 March 2014, was USD 12.7 million, corresponding to SEK 85.9 million.
The parent company's total income for the third quarter amounted to SEK 0.1 (0.1) million. Intragroup invoicing represented SEK 0 (0) million of this amount. The parent company's result before tax for the period January to September was SEK –42.3 (–20.3) million. The parent company's available liquid funds amounted to SEK 1,592.2 (1,552.0) million, which includes receivables from Group companies in the cash pool and unutilised credit facilities.
In July 2013, the vessel owner received an application for arbitration for the damage the customer believes the comgrounding in the Hudson River in December 2012 and the company's decision to stop operating the vessel in this shipping channel. In July 2013, the customer requested that the matter be settled by arbitration in the United States. The vessel owner strongly rejects the claim of approx. USD 21 million and is preparing for arbitration. The company's fees for legal and similar assistance regarding this matter are charged to the company's earnings as incurred.
In the first quarter, a process was initiated for the sale of Stena Poseidon and Palva, owned with Neste in jointly-controlled entities. Sales contracts were signed in March 2014 and the two vessels were delivered at the end of April and the beginning of May. Investments in joint ventures are accounted for using proportionate consolidation. The result of the sale is classified as "Sale of shares in jointly-controlled entities" in the consolidated income statement and cash flow statement.
Concordia Maritime has a small internal organisation, and purchases services from related-party companies in Stena Sphere, which include Stena Bulk. The latter company conducts tanker business that competes with Concordia Maritime in some respects. Accordingly, there is an
agreement, entered into many years ago, which regulates the relationship between the two companies with respect to new business. Under the terms of this agreement, Concordia Maritime has the right to opt for 0, 50 or 100 percent participation in each new transaction.
At the beginning of April 2011, Stena Bulk started a 50-50 joint venture together with the Danish company Weco. This resulted in a newly established company, Stena Weco, specialising in the transportation of vegetable oils.
Under a new agreement with Stena Bulk, Concordia Maritime is entitled to the financial result arising from vessels that may from time to time be chartered in by Stena Weco for a period of more than one year, should Concordia Maritime decide to participate in such charters. Other business generated by Stena Weco is not available to Concordia Maritime.
| ACounterparty risks – customer |
|---|
| BCounterparty risks – shipyards and |
Further information can be found in the 2013 annual report.
A fixed annual price is charged.
All related party transactions take place on commercial terms and at market-related prices.
| SEK millions | Quarter 3 2014 Quarter 3 2013 | 9 months (Jan–Sep) 2014 |
9 months (Jan–Sep) 2013 |
Full year 2013 | |
|---|---|---|---|---|---|
| CONSOLIDATED INCOME STATEMENT | |||||
| Average exchange rate SEK/USD | 6.95 | 6.55 | 6.68 | 6.52 | 6.51 |
| Time charter income | 13.5 | 61.3 | 103.4 | 190.3 | 226.2 |
| Spot charter income | 89.2 | 64.0 | 244.2 | 181.7 | 241.4 |
| Result from sale of investments in jointly-controlled entities | 1.3 | 0 | 57.4 | 0 | 0.0 |
| Other external income | 0.1 | 0.1 | 0.2 | 0.1 | 0.2 |
| Total income | 104.0 | 125.4 | 405.4 | 372.1 | 467.8 |
| Operating costs, ships | –34.7 | –32.7 | –105.7 | –101.1 | –132.1 |
| Personnel costs, seagoing | –35.2 | –33.3 | –100.7 | –99.1 | –130.8 |
| Other external costs | –8.6 | –10.8 | –26.3 | –26.4 | –38.4 |
| Personnel costs, land-based | –3.2 | –3.1 | –12.1 | –10.0 | –21.8 |
| Depreciation | –36.2 | –36.3 | –106.3 | –108.1 | –144.3 |
| Total operating costs | –117.9 | –116.2 | –351.2 | –344.7 | –467.4 |
| Operating result | –13.9 | 9.2 | 54.2 | 27.4 | 0.4 |
| Interest and similar income | 0.1 | 2.2 | 5.4 | 6.2 | 8.3 |
| Interest and similar expense | –9.3 | –12.5 | –30.4 | –37.6 | –47.7 |
| Financial net | –9.2 | –10.3 | –25.0 | –31.4 | –39.4 |
| Result before tax | –23.1 | –1.1 | 29.2 | –4.0 | –39.0 |
| Tax | –4.0 | 1.7 | –4.0 | 6.0 | 10.2 |
| Result after tax | –27.0 | 0.6 | 25.3 | 2.0 | –28.8 |
| Other comprehensive income | |||||
| Items that have been/can be transferred to result for the period | |||||
| Translation differences | 96.5 | –68.2 | 144.0 | –20.5 | –1.3 |
| Equity hedging | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Available-for-sale financial assets | 0.0 | 0.5 | –3.2 | –1.4 | –1.5 |
| Cash flow hedges, currency-related | 0.0 | 2.7 | 0.0 | –2.4 | –1.7 |
| Cash flow hedges, interest-related | 4.9 | 6.0 | 12.5 | 16.9 | 19.1 |
| Tax attributable to items that have been/can be transferred to result for the period | 4.2 | –2.7 | 4.1 | –1.2 | –0.4 |
| Comprehensive income for the period | 78.6 | –61.1 | 182.7 | –6.6 | –14.6 |
| Per-share data, SEK | |||||
| Number of shares | 47,729,798 | 47,729,798 | 47,729,798 | 47,729,798 | 47,729,798 |
| Result per share, before/after dilution | –0.57 | 0.01 | 0.53 | 0.04 | –0.60 |
| Equity per share, SEK | 30.9 | 27.24 | 30.9 | 27.24 | 27.07 |
| SEK millions | 30 Sep 2014 | 30 Sep 2013 | 31 Dec 2013 |
|---|---|---|---|
| Closing exchange rate SEK/USD | 7.24 | 6.41 | 6.51 |
| Assets | |||
| Ships and equipment | 2,944.9 | 2,905.4 | 2,915.6 |
| Ships under construction | 142.0 | 75.1 | 100.5 |
| Financial assets | 6.6 | 0.0 | 9.4 |
| Total non-current assets | 3,093.4 | 2,980.5 | 3,025.5 |
| Current receivables | 255.0 | 185.6 | 193.3 |
| Short-term investments | 0 | 85.1 | 81.7 |
| Cash and bank balances | 71.4 | 129.9 | 106.0 |
| Total current assets | 326.4 | 400.6 | 381.0 |
| Total assets | 3,419.8 | 3,381.1 | 3,406.5 |
| Equity and liabilities | |||
| Equity | 1,474.9 | 1,300.3 | 1,292.3 |
| Non-current liabilities | 1,755.3 | 1,851.6 | 1,862.7 |
| Current liabilities | 189.6 | 229.2 | 251.5 |
| Total equity and liabilities | 3,419.8 | 3,381.1 | 3,406.5 |
| SEK millions | Share capital |
Other paid in capital |
Translation reserve |
Hedging reserve |
Fair value reserve |
Retained earnings |
Total |
|---|---|---|---|---|---|---|---|
| Changes Jan-Sep 2014 | |||||||
| Opening balance 01.01.2014 | 381.8 | 61.9 | 29.4 | –20.3 | 3.2 | 836.3 | 1292.3 |
| Comprehensive income for the period |
148.1 | 12.5 | –3.2 | 25.3 | 182.7 | ||
| Dividend | |||||||
| Closing balance 30.09.2014 | 381.8 | 61.9 | 177.5 | –7.8 | 0 | 861.5 | 1474.9 |
| Changes Jan-Sep 2013 | |||||||
| Opening balance 01.01.2013 | 381.8 | 61.9 | 30.6 | –37.2 | 4.7 | 889.0 | 1,330.8 |
| Comprehensive income for the period |
— | — | –20.4 | 13.2 | –1.4 | 2.0 | –6.6 |
| Dividend | — | — | — | — | — | –23.9 | –23.9 |
| Closing balance 30.09.2013 | 381.8 | 61.9 | 10.2 | –24.0 | 3.3 | 867.1 | 1,300.3 |
| SEK millions | Quarter 3 2014 Quarter 3 2013 | 9 months (Jan–Sep) 2014 |
9 months (Jan–Sep) 2013 |
Full year 2013 | |
|---|---|---|---|---|---|
| Operating activities | |||||
| Result before tax | –23.1 | –1.1 | 29.2 | –4.0 | –39.0 |
| Adjustments: | |||||
| Depreciation | 40.2 | 39.8 | 117.4 | 120.6 | 160.4 |
| Result from sale of securities | 0 | 0.0 | –3.9 | 0.0 | –1.8 |
| Result from sale of investments in jointly-controlled entities |
–1.3 | –0.6 | –57.4 | –1.3 | — |
| Other items | 8.0 | –9.8 | 2.5 | –4.4 | 4.5 |
| Cash flow from operating activities before changes in working capital |
23.8 | 28.3 | 87.8 | 110.9 | 124.1 |
| Changes in working capital | –50.7 | –15.2 | –25.4 | –72.7 | –87.7 |
| Cash flow from operating activities | –26.9 | 13.1 | 62.4 | 38.2 | 36.4 |
| Investing activities | |||||
| Investment in non-current assets | –2.8 | 0.0 | –33.9 | 0.0 | –64.7 |
| Investment in financial assets | –27.4 | 0.0 | –34.5 | –34.3 | |
| Sale of financial assets | 1.9 | –0.1 | 87.8 | –34.3 | 46.4 |
| Sale of investments in jointly-controlled entities | 5.1 | 6.6 | 231.3 | 41.9 | — |
| Cash flow from investing activities | 4.2 | –20.9 | 285.2 | –26.9 | –52.6 |
| Financing activities | |||||
| New loans | 0.0 | 0.0 | 12.9 | 99.8 | 156.2 |
| Amortisation of loans | 3.5 | –22.4 | –401.8 | –103.2 | –154.5 |
| Dividend to shareholders | 0.0 | 0.0 | 0.0 | –23.9 | –23.9 |
| Cash flow from financing activities | –3.5 | –22.4 | –388.9 | –27.3 | –22.2 |
| Cash flow for the period | –26.2 | –30.2 | –41.3 | –16.0 | –38.4 |
| Balance at beginning of period (Note 1) | 94.2 | 162.5 | 106.0 | 144.4 | 144.4 |
| Exchange differences (Note 2) | 3.4 | –2.4 | 6.7 | 1.5 | 0.0 |
| Balance at end of period (Note 1) | 71.4 | 129.9 | 71.4 | 129.9 | 106.0 |
| Note 1. Consists of cash, bank balances and credit facility | |||||
| Note 2. Exchange differences attributable to: | |||||
| Cash and cash equivalents at beginning of year | 0.0 | 0.1 | 0.0 | 0.1 | 0.1 |
| Cash flow for the period | 3.4 | –2.5 | 6.7 | 1.4 | –0.1 |
| 3.4 | –2.4 | 6.7 | 1.5 | 0.0 |
| SEK millions | Quarter 3 2014 |
Quarter 2 2014 |
Quarter 1 2014 |
Quarter 4 2013 |
Quarter 3 2013 |
Quarter 2 2013 |
Quarter 1 2013 |
Quarter 4 2012 |
|
|---|---|---|---|---|---|---|---|---|---|
| Profit/loss | |||||||||
| items | Total income | 104.0 | 166.2 | 135.2 | 95.7 | 125.4 | 118.8 | 127.9 | 126.3 |
| Operating costs excluding impairment | –117.9 | –114.0 | –119.3 | –122.7 | –116.2 | –116.3 | –112.2 | –110.7 | |
| Operating result (EBIT) | –13.9 | 52.2 | 15.9 | –27.0 | 9.2 | 2.5 | 15.7 | 15.6 | |
| of which result from sale of investments in jointly-controlled entities (vessels) |
56.1 | — | — | — | — | — | — | ||
| Financial net | –9.2 | –10.1 | –5.7 | –8.0 | –10.3 | –11.1 | –10.0 | –11.0 | |
| Result after financial items | –23.1 | 42.1 | 10.2 | –35.0 | –1.1 | –8.6 | 5.7 | 4.6 | |
| Result after tax | –27.0 | 40.1 | 12.2 | –30.8 | 0.6 | –6.2 | 7.6 | 9.7 | |
| Cash flow from operating activities | 23.8 | 21.9 | 42.1 | 13.2 | 28.3 | 42.7 | 39.9 | 33.6 | |
| EBITDA | 22.3 | 86.5 | 51.7 | 9.2 | 45.5 | 38.8 | 51.2 | 52.9 | |
| Balance-sheet | |||||||||
| items | Ships (number) | 2,944.9 (11) | 2,769.6 (11) | 2,708.6 (12) | 2,915.6 (12) | 2,905.4 (12) | 3,089.6 (12) | 3,028.2 (12) | 3,064.5 (12) |
| Ships under construction (number) | 142.0 (2) | 130.8 (2) | 102.0 (2) | 100.5 (2) | 75.1 (2) | 53.5 (2) | 50.5 (2) | 48.0 (2) | |
| Liquid funds incl. investments | 71.4 | 94.2 | 211.8 | 187.7 | 215.0 | 256.3 | 204.2 | 241.5 | |
| Other assets | 261.6 | 182.2 | 364.6 | 202.7 | 185.6 | 176.0 | 169.7 | 126.7 | |
| Interest-bearing liabilities | 1,792.2 | 1,669.0 | 1,970.6 | 1,994.0 | 1,959.9 | 2,080.8 | 1,992.8 | 1,993.3 | |
| Other liabilities and provisions | 152.7 | 111.3 | 112.0 | 120.2 | 120.9 | 133.2 | 116.7 | 156.6 | |
| Equity | 1,474.9 | 1,396.5 | 1,304.4 | 1,292.3 | 1,300.3 | 1,361.4 | 1,343.1 | 1,330.8 | |
| Total assets | 3,419.8 | 3,176.8 | 3,387.0 | 3,406.5 | 3,381.1 | 3,575.4 | 3,452.6 | 3,480.7 | |
| Key ratios, % | Equity ratio | 43 | 44 | 39 | 38 | 38 | 38 | 39 | 38 |
| Return on total capital | 1 | 0 | 2 | –3 | 1 | 0 | 2 | 2 | |
| Return on capital employed | 1 | 0 | 2 | –3 | 1 | 0 | 2 | 2 | |
| Return on equity | 0 | 0 | 4 | –9 | 1 | 0 | 2 | 3 | |
| Operating margin | –13 | 31 | 12 | –28 | 7 | 2 | 12 | 12 | |
| Share data | Total income | 2.18 | 3.48 | 2.83 | 2.00 | 2.63 | 2.49 | 2.68 | 2.65 |
| Operating costs excluding impairment | –2.47 | –2.39 | –2.50 | –2.57 | –2.43 | –2.44 | –2.35 | –2.32 | |
| Operating result before impairment | –0.29 | 1.09 | 0.33 | –0.57 | 0.19 | 0.05 | 0.33 | 0.33 | |
| Financial net | –0.19 | –0.21 | –0.12 | –0.17 | –0.22 | –0.23 | –0.21 | –0.23 | |
| Result after tax | –0.57 | 0.84 | 0.26 | –0.64 | 0.01 | –0.13 | 0.16 | 0.20 | |
| Cash flow | 0.50 | 0.46 | 0.88 | 0.28 | 0.59 | 0.89 | 0.84 | 0.70 | |
| EBITDA | 0.47 | 1.81 | 1.08 | 0.19 | 0.95 | 0.81 | 1.07 | 1.11 | |
| Equity | 30.90 | 29.26 | 27.33 | 27.07 | 27.24 | 28.52 | 28.14 | 27.88 |
Please note that there has been no dilution effect since 2002. Definitions: see page 16
| SEK millions | 9 months 2014 | 9 months 2013 |
|---|---|---|
| Net sales | 0.5 | 0.1 |
| Other external costs | –11 | –10.7 |
| Personnel expenses | –9.2 | –7.1 |
| Operating result | –19.8 | –17.7 |
| Other interest and similar income | 9.4 | 16.1 |
| Interest and similar expense | –31.9 | –18.7 |
| Result before tax | –42.3 | –20.3 |
| Tax | 0 | 4.5 |
| Result for the period | –42.3 | –15.8 |
The Concordia Maritime Group applies International Financial Reporting Standards (IFRS) as adopted by the EU. The Group applies the same accounting policies and calculation methods in the quarterly reports as in the annual report for 2013, in addition to those described in this report.
The Group's interim report has been prepared in accordance with IAS 34. The report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR recommendations. The report provides a true and fair overview of the operations, financial position and performance of the parent company and Group, and describes material risks and uncertainties faced by the Group. The report has not been reviewed by the company's auditors.
Gothenburg, 12 November 2014
Kim Ullman CEO
| SEK millions | 30 Sep 2014 | 30 Sep 2013 |
|---|---|---|
| Assets | ||
| Ships and equipment | 0.1 | 0.0 |
| Financial assets | 34.3 | 27.7 |
| Investments in Group companies | 745.8 | 745.8 |
| Total non-current assets | 780.2 | 773.5 |
| Current receivables | 2.3 | 6.8 |
| Receivables from Group companies | 1,239.6 | 1,286.3 |
| Cash and bank balances | 66.2 | 36.9 |
| Total current assets | 1,308.2 | 1,330.0 |
| Total assets | 2,088.3 | 2,103.5 |
| Equity and liabilities | ||
| Equity | 561.5 | 511.4 |
| Non-current liabilities | 1,504.8 | 1490.5 |
| Current liabilities | 22.0 | 101.6 |
| Total equity and liabilities | 2,088.3 | 2,103.5 |
| Pledged assets | ||
| Contingent liabilities 1) |
1) The parent company has provided a guarantee for a subsidiary, which relates to vessel financing.
This interim financial report in summary for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and relevant provisions of the Swedish Annual Accounts Act. The interim report for the parent company has been prepared in accordance with chapter 9 of the Swedish Annual Accounts Act. For the Group and parent company, the same accounting principles and computation methods have been applied as in the most recent annual report.
A non-current asset or disposal group classified as held for sale means that its carrying amount will be recovered principally through sale rather than through continuing use. An asset is classified as held for sale if it is available for immediate sale in its present state and based on conditions that are normal, and the sale is highly probable. These assets or disposal groups are reported on a separate line as a current asset or a current liability in the balance sheet.
Immediately before classification as held for sale, the carrying amount of the asset and all assets and liabilities in a disposal group will be measured in accordance with applicable standards. On initial classification as held for sale, non-current assets are measured at the lower of their carrying amount and fair value less costs to sell. Losses resulting from a decline in value on initial classification as held for sale are recognised in profit or loss. Subsequent changes in value, both gains and losses, are recognised in profit or loss.
Cash flow from operating activities Result after net financial items plus depreciation minus tax paid (cash flow before change in working capital and investments and before effect of ship sales).
Return on equity Result after taxas an average of the last twelve months expressed as a percentage of average equity on a 12-month rolling basis.
Return on total capital Result after financial net plus finance costs as an average of the last twelve months expressed as a percentage of average total assets on a 12-month rolling basis.
Return on capital employed Result after financial net plus finance costs as an average of the last twelve months expressed as a percentage of average capital employed on a 12-month rolling basis. Capital employed refers to total assets minus non-interest-bearing liabilities, including deferred tax liability.
Equity ratio Equity as a percentage of total assets.
Spot charter (open market) Hiring of vessels on a voyage-by-voyage basis.
Time charter Hiring of vessels for a specified period at a fixed rate.
This information in this report is information that Concordia Maritime is required to disclose in accordance with the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. The information was made public on 12 November 2014 at approx. 2.30 p.m.
2014 Year-end Report 19 February 2015 Q1 Interim Report 28 April 2015 Annual General Meeting 28 April 2015
Kim Ullman, CEO +46 31 85 50 03 or +46 704 85 50 03 kim.ullman@ concordiamaritime.com
Ola Helgesson, CFO +46 31 85 50 09 or +46 704 85 50 09 ola.helgesson@ concordiamaritime.com
Concordia Maritime 405 19 Gothenburg, Sweden Tel +46 31 85 50 00 Reg. no. 556068-5819 www.concordiamaritime.com
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