Quarterly Report • Apr 29, 2014
Quarterly Report
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| Quarter 1 | Full year | ||
|---|---|---|---|
| 2014 2013 |
2013 | ||
| Total income, SEK million | 135.2 | 127.9 | 467.8 |
| EBITDA, SEK million | 51.7 | 51.2 | 144.7 |
| Operating result, SEK million | 15.9 | 15.7 | 0.4 |
| Result after tax, SEK million | 12.2 | 7.6 | –28.8 |
| Result per share, SEK | 0.26 | 0.16 | –0.60 |
| EBITDA, USD million | 8.0 | 8.0 | 22.2 |
| Available liquid funds1), | |||
| SEK million | 285.2 | 427.0 | 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 market or time charters), profit-sharing clauses in charters and the sale of ships.
| CEO's overview | 3 |
|---|---|
| Business activities | 4 |
| Freight market development | 6 |
| Financial summary | 7 |
| Other information | 9 |
| Financial statements | 11 |
After my first three months as CEO of Concordia Maritime, it is nice to be able to report a profitable first quarter of 2014. We report a profit before tax of SEK 10.2 (5.7) million for the period. Operating cash flow (EBITDA) amounted to SEK 51.7 (51.2) million, corresponding to USD 8.0 (8.0) million. As predicted, the market strengthened further during the beginning of the quarter and the outlook also remains positive for the full year.
The year started relatively strongly with high freight rates on several routes in the product tanker market. This means that our strategy of increased exposure to the spot market is now beginning to pay off. Our open market vessels generated average income of approx. USD 16,000 per day, compared with USD 13,000 per day for the full year 2013.
The outlook still looks positive on an annual basis, even though we are currently in a seasonal decline that we expect to continue into the second quarter. The recovery of the global economy combined with the shift in global refining capacity continues to drive demand for product tanker transportation. This is expected to grow by 5–6 percent in 2014, while growth in supply of vessels should be about 5 percent.
However, the spot market is very fragile in nature. This leads us and other analysts to believe that activity in the newbuilding market over the past twelve months indicates a future trend of lower peaks in the spot market, compared with the strong years 2007–2008. At the same time, underlying demand will make the market's troughs shallower than those we saw, for example, in 2010–2012.
To deal with these trends, we have launched our new chartering strategy. In addition to increased exposure to the spot market, we are trying to concentrate employment on trades and cargo systems where our P-MAX tankers' unique features can be utilized. As previously reported, we entered
into two new cooperation agreements with Total and Shell Singapore Pte Ltd in January. In addition to these agreements, we are engaged in ongoing dialogues with various players with the aim of finding more new business forms.
In March we made the decision to sell the two panamax (LR1) vessels Stena Poseidon and Palva, which we owned in a 50–50 joint venture with Neste. In September 2013, Neste announced its intention to exit certain shipping commitments and indicated that they wanted to break the vessels' charter contracts, which were signed until 2017. Although the market for second-hand tonnage is rising, the price for the vessels and the charter contract settlement terms with Neste were so favourable that we decided to sell now. The positive result from the sales will be realised during the second quarter.
The sale was something of a textbook example. The ships are ordered on the basis of the customer's needs, they are placed on long-term contracts and give the Company a decent return during the charter. A vessel's value is written down over the years and when a good opportunity arises, you sell at a profit.
The sale is also in line with the strategy of streamlining the Company's niche. With the exception of the suezmax tanker Stena Supreme, the fleet now consists exclusively of efficient
and flexible product tankers, most of which are exposed to the spot market.
We also have a newbuilding program consisting of two sophisticated, custom designed product and chemical tankers of 50,000 dwt each, representing an investment of just over SEK 500 million. These vessels will be optimally employed through our partner Stena Weco, a world leader in the transportation of vegetable oils.
Finally, it is also encouraging that technical operation and management continued to be impeccable during the quarter. This is a central part of our journey to higher utilisation and better profitability.
Day-to-day activities proceeded according to plan during the quarter. At the end of March, 9 out of 13 vessels were employed on the open market. Drydocking is scheduled for just one vessel in 2014.
Our ten P-MAX tankers (65,200 dwt) are the backbone of our modern, safe and efficient fleet. Five of the vessels have been converted to IMO3 class, which means that they can carry vegetable oils and light chemicals as well as crude oil and petroleum products. The majority (8 out of 10) of vessels are employed on the spot market.
During the quarter, we signed a new cooperation agreement with Total covering Stena Paris. Her extreme shallow draft will be of particular benefit on one of the French company's niche routes from Southeast Asia to Polynesia. Agreement was also reached with Total for early redelivery of Stena Progress.
We also signed a cooperation agreement with Shell Tankers Singapore Pte Ltd (Shell) on the employment of Stena Penguin and Stena Progress in Shell's cargo system. The cooperation offers significant potential for maximising the vessels' utilisation rate.
There is only one scheduled drydocking during the year – Stena Progress in the third quarter.
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 continues to be the market leader in terms of suezmax tanker income and the market
for this segment was strong during the quarter. This meant that average income for Stena Supreme was USD 32,800 per day, compared with approx. USD 17,500 per day for the full year 2013.
Agreements for the sale of the sister vessels Stena Poseidon and Palva (75,000 dwt), which were owned in a 50–50 joint venture with Neste, were signed with Transport Maritime St-Laurent Inc. in March 2014. The vessels were launched in 2007 and since then had been signed to 10-year time charters with Neste Oil. Delivery is set for April/May 2014 and the gain on the sale and settlement terms for the prematurely broken charter contract will be realised in the second quarter.
The newbuilding program, comprising the two product and chemical tankers (50,000 dwt) that were ordered in 2012, is continuing as planned. Stena Image is scheduled for delivery in late 2014 and Stena Important in early 2015.
The vessels are part of a series being designed with Stena Bulk and Stena Weco, and they are being developed in collaboration between Stena Teknik and Guangzhou Shipyard International in China. The concept is called IMO2MAX.
The tankers will be among the most sophisticated in the market and at the forefront in terms of both energy efficiency and cargo flexibility. We plan to employ them on the spot market via our partner Stena Weco.
P-MAX Stena Premium Stena Penguin Stena Polaris Stena Progress Stena Perros Stena President Stena Performance Stena Primorsk Stena Provence Stena Paris Panamax Stena Poseidon Palva Suezmax
Stena Supreme IMO2MAX Stena Image Stena Important
2014 2015 2016 2017
Contracted Employment on the spot market
Vessel's delivery date
| Key ratios | Quarter 1 | Full year | |
|---|---|---|---|
| 2014 | 2013 | 2013 | |
| EBITDA, SEK million | 51.7 | 51.2 | 144.7 |
| Operating result, SEK million | 15.9 | 15.7 | 0.4 |
| Result after tax, SEK million |
12.2 | 7.6 | –28.8 |
| Available liquid funds, including unutilised credit facilities, SEK million |
285.2 | 427.0 | 242.1 |
| Result per share after tax, SEK |
0.26 | 0.16 | –0.60 |
| EBITDA per share, SEK | 1.08 | 1.07 | 3.03 |
| Dividend per share, SEK | — | — | 0.501) |
| Equity per share, SEK | 27.33 | 28.14 | 27.07 |
| Equity ratio, % | 39 | 39 | 38 |
| Growth in equity, % | 1 | 1 | –3 |
| Return on equity, % | 4 | 2 | –2 |
1) Refers to the dividend paid as decided at the Annual General Meeting
The chart illustrates Concordia Maritime's income for vessels employed on the spot and time charter markets. The company's income is depicted by green and red lines. The blue line shows an average world wide index for the spot market.
in May 2013
| USD millions | Q1 2014 |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Q4 2012 |
Q3 2012 |
Q2 2012 |
|---|---|---|---|---|---|---|---|---|
| P-MAX, timecharter1) | 2.64) | 2.4 | 4.3 | 3.5 | 4.9 | 5.9 | 7.0 | 6.3 |
| P-MAX, spot | 3.7 | –0.2 | 2.4 | 1.7 | 2.4 | 1.8 | 0.3 | 2.5 |
| Panamax | 1.1 | 0.9 | 0.8 | 1.4 | 1.3 | 1.1 | 1.0 | 1.0 |
| Suezmax | 2.1 | 0.9 | 0.8 | 0.6 | 0.7 | 0.4 | 0.8 | — |
| Admin. and other | –1.5 | –2.63) | –1.4 | –1.3 | –1.3 | –1.2 | –1.3 | –1.1 |
| Total | 8.02) | 1.42) | 6.92) | 5.92) | 8.02) | 8.02) | 7.82) | 8.72) |
1) 0% of accumulated income is attributable to profit sharing.
2) The company reports depreciation of drydock as an operating cost. This amounts to SEK 3.4 million for Q1 2014.
3) For Q4, 2013 includes severance payment of USD 1.1 million. 4) Includes one-time payment of USD 1.3 million for early redelivery of Stena Progress.
Average freight rates in the spot market were approx. USD 8,200 per day according to an average world market index.
Transportation of heavy petroleum products was particularly in demand. One reason was the cold weather in the U.S. early on in the year, which increased the need for imports, particularly of fuel oil. Trade flows of petroleum products from the U.S. to South America continued to grow during the quarter.
Both regional trade and imports from the U.S. and the Middle East increased in Europe and the trend is expected to continue during the year. This is a clear example of the effect of reducing refining capacity in Europe, while the need for oil has begun to stabilise.
In the suezmax market, freight rates rose sharply at the beginning of the quarter. Compared with the fourth quarter of 2013, which was strong at times, average spot market freight rates increased by 59 percent. Imports of crude oil continues to fall in the USA, while imports in Asia, particularly in India and China increases. The trend is that oil is transported over longer distances.
At the end of March, the cost of a product tanker of standard type was approx. USD 37 million. The price of an IMO2 class MR tanker like our ordered IMO2MAX vessels was approx. USD 40 million. This is about 15 percent higher than when we placed our order with the shipyard in 2012. The cost of a suezmax tanker of standard type was approx. USD 67 million at the end of the quarter.
Apr Jun Jul Aug Mar Jan May Sep Oct Nov Dec Feb
Time charter (3 years)
Spot
5,000
1) The chart shows the average value per month on a strictly round trip basis.
2) The charts show the value at the end of each period and refer to standard type tankers.
Source: Fearnleys
Equity per share was SEK 27.33 (28.14).
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 including the effects of forward contracts, which are recognised in equity, amounted to SEK 28.8 (33.1) 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 to cover approx. 30 percent of anticipated future borrowing within existing credit facilities and a large proportion of them do not expire until 2015. At the end of the first quarter, the value of these contracts was SEK –16.6 (–33.7) million, which is recognised in the Hedging reserve through OCI.
Since 2011, financial investments in NOK and GBP have been hedged by NOK/USD foreign exchange forward contracts in order to make them currency-neutral.
Investments during the period January to March amounted to SEK 5.1 (3.8) million and relate to advance payments for two IMO2MAX tankers, with delivery of the first of these scheduled for the end of 2014.
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 31 December 2013 did not indicate any impairment.
| Quarter 1 | Full year | ||
|---|---|---|---|
| SEK millions | 2014 | 2013 | 2013 |
| Total income | 135.2 | 127.9 | 467.8 |
| Operating result | 15.9 | 15.7 | 0.4 |
| Result after financial net |
10.2 | 5.7 | –39.0 |
| Result per share after tax, SEK |
0.26 | 0.16 | –0.60 |
| SEK millions | 31 March 2014 |
31 March 2013 |
|---|---|---|
| Available liquid funds1) | 285.2 | 427.0 |
| Interest-bearing liabilities | 1,970.6 | 1,992.8 |
| Equity | 1,304.4 | 1,343.1 |
| Equity ratio, % | 38.5 | 39.0 |
1) Includes unutilised available credit facilities.
Four of our fleet of 13 vessels were chartered out on fixed contracts and nine 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 31 March 2014 was 413 (391), 407 (385) of whom were seagoing employees.
The bond portfolio was sold on 31 March 2014. The sale proceeds were received after the reporting date. 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 other comprehensive income and accumulated as a component of equity. Because the sale occurred during the first quarter, gains or losses are recognised in financial net. This means that the cumulative effects of the previous fair value measurement are also transferred to financial net. The total value of the bond portfolio on the sale date, 31 March 2014, was USD 12.6 (14.5) million, corresponding to SEK 82.2 (94.2) million. The bond portfolio was previously classified as short-term investment.
The parent company's total income for the fourth quarter amounted to SEK 0.0 (0) million. Intragroup invoicing represented SEK 0.0 (0) million of this amount. The parent company's result before tax for the first quarter amounted to SEK –8.8 (–7.9) million. The parent company's available liquid funds amounted to SEK 1,524.1 (1,695.1) 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 company has caused them in connection with Stena Primorsk's grounding 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 in a joint venture with Neste. Sales contracts were signed in March 2014. Investments in joint ventures are accounted for using proportionate consolidation, and a sale of such investments meant that the assets and associated liabilities were classified as held for sale in the first quarter. It was not considered relevant to write down the net realisable value. Delivery of both vessels takes place in April/May 2014.
Exchange differences in other comprehensive income
As a result of SEK/USD exchange rate, the company's profit in SEK has changed, while profit in USD remains unchanged
Concordia Maritime has a small internal organisation, and purchases services from related-party companies in the Stena Sphere, which include Stena Bulk. The latter company conducts tanker business which 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, resulting in a newly established company, Stena Weco. Stena Weco specialises mainly 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.
| Type of risk | ||||
|---|---|---|---|---|
| 1. Corporate risks | A Brand |
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| B Employees |
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| CLiquidity | ||||
| D Financing risk |
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| 2. Market-related | A Economic trend |
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| risks | B Freight rates | |||
| C Oil price |
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| D Political risk |
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| E War and instability |
||||
| 3. Operational | A Insurance issues |
|||
| risks | B Environment | |||
| C Ship operation |
||||
| 4. Credit risks | A Counterparty risks – customer |
|||
| BCounterparty risks – shipyards and partners |
||||
Further information can be found in the 2013 annual report.
A fixed annual price is charged.
All related party transactions are conducted on commercial terms and at market-related prices.
| SEK millions | Quarter 1 2014 | Quarter 1 2013 | Full year 2013 |
|---|---|---|---|
| CONSOLIDATED INCOME STATEMENT | |||
| Average exchange rate SEK/USD | 6.46 | 6.43 | 6.51 |
| Time charter income | 42.7 | 75.6 | 226.2 |
| Spot charter income | 92.5 | 52.3 | 241.4 |
| Other external income | 0.0 | 0.0 | 0.2 |
| Total income | 135.2 | 127.9 | 467.8 |
| Operating costs, ships | –36.3 | –33.2 | –132.1 |
| Personnel costs, seagoing | –32.4 | –32.9 | –130.8 |
| Other external costs | –9.5 | –6.7 | –38.4 |
| Personnel costs, land-based | –5.3 | –3.9 | –21.8 |
| Depreciation | –35.8 | –35.5 | –144.3 |
| Total operating costs | –119.3 | –112.2 | –467.4 |
| Operating result | 15.9 | 15.7 | 0.4 |
| Interest and similar income | 5.2 | 2.3 | 8.3 |
| Interest and similar expense | –10.9 | –12.3 | –47.7 |
| Financial net | –5.7 | –10.0 | –39.4 |
| Result before tax | 10.2 | 5.7 | –39.0 |
| Tax | 2.0 | 1.9 | 10.2 |
| Net result after tax | 12.2 | 7.6 | –28.8 |
| Other comprehensive income | |||
| Items that have been/can be transferred to result for the period | |||
| Translation differences | –0.7 | 3.4 | –1.3 |
| Equity hedging | 0.0 | –0.7 | 0.0 |
| Available-for-sale financial assets | –3.2 | –1.3 | –1.5 |
| Cash flow hedges, currency-related | 0.0 | 5.2 | –1.7 |
| Cash flow hedges, interest-related | 3.7 | –1.7 | 19.1 |
| Tax attributable to items that have been, | |||
| or can be, transferred to result for the period | 0.1 | –0.2 | –0.4 |
| Comprehensive income for the period | 12.1 | 12.3 | –14.6 |
| Per-share data, SEK | |||
| Number of shares | 47,729,798 | 47,729,798 | 47,729,798 |
| Result per share, before/after dilution | 0.26 | 0.16 | –0.60 |
| Equity per share, SEK | 27.33 | 28.14 | 27.07 |
| SEK millions | 31 March 2014 | 31 March 2013 | 31 Dec 2013 |
|---|---|---|---|
| Closing exchange rate SEK/USD | 6.51 | 6.52 | 6.51 |
| Assets | |||
| Ships and equipment | 2,708.6 | 3,028.2 | 2,915.6 |
| Ships under construction | 102.0 | 50.5 | 100.5 |
| Financial assets | 9.4 | 0.0 | 9.4 |
| Total non-current assets | 2,820.0 | 3,078.7 | 3,025.5 |
| Current receivables | 355.2 | 169.7 | 193.3 |
| Short-term investments | 82.2 | 94.2 | 81.7 |
| Cash and bank balances | 129.6 | 110.0 | 106.0 |
| Total current assets | 567.0 | 373.9 | 381.0 |
| Total assets | 3,387.0 | 3,452.6 | 3,406.5 |
| Equity and liabilities | |||
| Equity | 1,304.4 | 1,343.1 | 1,292.3 |
| Non-current liabilities | 1,705.6 | 1,958.0 | 1,862.7 |
| Current liabilities | 377.0 | 151.5 | 251.5 |
| Total equity and liabilities | 3,387.0 | 3,452.6 | 3,406.5 |
| SEK millions | Share capital |
Other paid-in capital |
Translation reserve |
Hedging reserve |
Fair value reserve |
Retained earnings |
Total |
|---|---|---|---|---|---|---|---|
| Changes Jan–March 2014 | |||||||
| Opening balance 01-01-2014 | 381.8 | 61.9 | 29.4 | –20.3 | 3.2 | 836.3 | 1,292.3 |
| Comprehensive income for the period | –0.6 | 3.7 | –3.2 | 12.2 | 12.1 | ||
| Dividends | 0.0 | ||||||
| Closing balance 31-03-2014 | 381.8 | 61.9 | 28.8 | –16.6 | 0.0 | 848.5 | 1,304.4 |
| Changes Jan–March 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 | 2.5 | 3.5 | –1.3 | 7.6 | 12.3 | ||
| Dividends | |||||||
| Closing balance 31-03-2013 | 381.8 | 61.9 | 33.1 | –33.7 | 3.4 | 896.6 | 1,343.1 |
| SEK millions | Quarter 1 2014 | Quarter 1 2013 | Full year 2013 |
|---|---|---|---|
| Operating activities | |||
| Result before tax | 10.2 | 5.7 | –39.0 |
| Adjustments: | |||
| Depreciation | 39.2 | 39.8 | 160.4 |
| Result, sale of securities | –3.8 | –0.7 | –1.8 |
| Other items | –3.5 | –4.9 | 4.5 |
| Cash flow from operating activities before changes in working capital |
42.1 | 39.9 | 124.1 |
| Changes in working capital | 8.9 | –68.0 | –87.7 |
| Cash flow from operating activities | 51.0 | –28.1 | 36.4 |
| Investing activities | |||
| Investment in non-current assets | –5.1 | –3.8 | –64.7 |
| Investment in financial assets | 0.0 | –33.9 | –34.3 |
| Sale of financial assets | 0.6 | 34.8 | 46.4 |
| Cash flow from investing activities | –4.5 | –2.9 | –52.6 |
| Financing activities | |||
| New loans | 12.9 | 0.0 | 156.2 |
| Amortisation of loans | –35.8 | –3.2 | –154.5 |
| Dividend to shareholders | 0.0 | 0.0 | –23.9 |
| Cash flow from financing activities | –22.9 | –3.2 | –22.2 |
| Cash flow for the period | 23.6 | –34.2 | –38.4 |
| Balance at beginning of period (Note 1) | 106.0 | 144.4 | 144.4 |
| Exchange differences (Note 2) | 0.0 | –0.2 | 0.0 |
| Balance at end of period (Note 1) | 129.6 | 110.0 | 106.0 |
| Note 1. Balance 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 | 0.1 |
| Cash flow for the period | 0.0 | –0.1 | –0.1 |
| 0.0 | –0.2 | 0.0 |
| SEK millions | Quarter 1 2014 |
Quarter 4 2013 |
Quarter 3 2013 |
Quarter 2 2013 |
Quarter 1 2013 |
Quarter 4 2012 |
Quarter 3 2012 |
Quarter 2 2012 |
|
|---|---|---|---|---|---|---|---|---|---|
| Profit/loss | |||||||||
| items | Total income | 135.2 | 95.7 | 125.4 | 118.8 | 127.9 | 126.3 | 135.8 | 144.0 |
| Operating costs excluding impairment | –119.3 | –122.7 | –116.2 | –116.3 | –112.2 | –110.7 | –120.6 | –121.9 | |
| Operating result (EBIT) | 15.9 | –27.0 | 9.2 | 2.5 | 15.7 | 15.6 | 15.2 | –388.9 | |
| of which profit/loss on ship sales | |||||||||
| Financial net | –5.7 | –8.0 | –10.3 | –11.1 | –10.0 | –11.0 | –11.1 | –6.7 | |
| Result after financial items | 10.2 | –35.0 | –1.1 | –8.6 | 5.7 | 4.6 | 4.1 | –395.6 | |
| Net result after tax | 12.2 | –30.8 | 0.6 | –6.2 | 7.6 | 9.7 | 7.4 | –393.7 | |
| Cash flow from operating activities | 42.1 | 13.2 | 28.3 | 42.7 | 39.9 | 33.6 | 44.6 | 55.1 | |
| EBITDA | 51.7 | 9.2 | 45.5 | 38.8 | 51.2 | 52.9 | 52.7 | 60.6 | |
| Balance-sheet | |||||||||
| items | Ships (number) | 2,708.6 (12) | 2,915.6 (12) | 2,905.4 (12) | 3,089.6 (12) | 3,028.2 (12) | 3,064.5 (12) | 3,105.1 (12) | 3,287.5 (12) |
| Ships under construction (number) | 102.0 (2) | 100.5 (2) | 75.1 (2) | 53.5 (2) | 50.5 (2) | 48.0 (2) | 46.6 (2) | 0 | |
| Liquid funds incl. investments | 211.8 | 187.7 | 215.0 | 256.3 | 204.2 | 241.5 | 230.0 | 280.7 | |
| Other assets | 364.6 | 202.7 | 185.6 | 176.0 | 169.7 | 126.7 | 102.3 | 113.1 | |
| Interest-bearing liabilities | 1,970.6 | 1,994.0 | 1,959.9 | 2,080.8 | 1,992.8 | 1,993.3 | 2,000.8 | 2,130.0 | |
| Other liabilities and provisions | 112.0 | 120.2 | 120.9 | 133.2 | 116.7 | 156.6 | 165.0 | 182.4 | |
| Equity | 1,304.4 | 1,292.3 | 1,300.3 | 1,361.4 | 1,343.1 | 1,330.8 | 1,318.2 | 1,368.9 | |
| Total assets | 3,387.0 | 3,406.5 | 3,381.1 | 3,575.4 | 3,452.6 | 3,480.7 | 3,484.0 | 3,681.3 | |
| Key ratios, % | Equity ratio | 39 | 38 | 38 | 38 | 39 | 38 | 38 | 37 |
| Return on total capital | 2 | –3 | 1 | 0 | 2 | 2 | 2 | –10 | |
| Return on capital employed | 2 | –3 | 1 | 0 | 2 | 2 | 2 | –9 | |
| Return on equity | 4 | –9 | 1 | 0 | 2 | 3 | 2 | –24 | |
| Operating margin | 12 | –28 | 7 | 2 | 12 | 12 | 11 | –270 | |
| Share data | Total income | 2.83 | 2.00 | 2.63 | 2.49 | 2.68 | 2.65 | 2.85 | 3.02 |
| Operating costs excluding impairment | –2.50 | –2.57 | –2.43 | –2.44 | –2.35 | –2.32 | –2.53 | –2.55 | |
| Operating result before impairment | 0.33 | –0.57 | 0.19 | 0.05 | 0.33 | 0.33 | 0.32 | 0.46 | |
| Financial net | –0.12 | –0.17 | –0.22 | –0.23 | –0.21 | –0.23 | –0.23 | –0.14 | |
| Net result after tax | 0.26 | –0.64 | 0.01 | –0.13 | 0.16 | 0.20 | 0.15 | –8.25 | |
| Cash flow | 0.88 | 0.28 | 0.59 | 0.89 | 0.84 | 0.70 | 0.93 | 1.15 | |
| EBITDA | 1.08 | 0.19 | 0.95 | 0.81 | 1.07 | 1.11 | 1.10 | 1.27 | |
| Equity | 27.33 | 27.07 | 27.24 | 28.52 | 28.14 | 27.88 | 27.62 | 28.68 |
Please note that there has been no dilution effect since 2002. Definitions: see page 16
| SEK millions | Quarter 1 2014 | Quarter 1 2013 |
|---|---|---|
| Net sales | 0.0 | 0.0 |
| Other external costs | –3.9 | –2.9 |
| Personnel expenses | –4.3 | –3.0 |
| Operating result | –8.2 | –5.9 |
| Result from subsidiaries | ||
| Other interest and similar income | 3.6 | 4.6 |
| Interest and similar expense | –4.2 | –6.6 |
| Result before tax | –8.8 | –7.9 |
| Tax | 1.9 | 1.8 |
| Result for the period | –6.9 | –6.1 |
SEK millions 31 March 2014 31 March 3013 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 4.8 6.0 Receivables from Group companies 1,331.9 1,354.1 Cash and bank balances 36.9 24.0 Total current assets 1,373.6 1,384.1 Total assets 2,153.8 2,157.6 Equity and liabilities Equity 596.9 545.0 Non-current liabilities 1,472.8 1,577.8 Current liabilities 84.1 34.8 Total equity and liabilities 2,153.8 2,157.6 Pledged assets 65.1 66.2 Contingent liabilities1) 281.2 302.1
1) The parent company has also provided a guarantee for a subsidiary, which relates to vessel financing.
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. This report gives a true and fair view of the operations, financial position and performance of the Parent Company and Group, and describes significant risks and uncertainties to which the Group is exposed. This report has not been reviewed by the Company's auditors.
Gothenburg, 29 April 2014
Kim Ullman CEO
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 total capital Result after net financial items plus financial expenses as a percentage of average total assets.
Return on capital employed Result after net financial items plus financial expenses as a percentage of average capital employed. Capital employed refers to total assets minus non-interest-bearing liabilities, including deferred tax liability.
Return on equity Result for the year as a percentage of average equity.
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.
The 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 29 April 2014, at approx. 2.30 p.m.
Q2 Interim Report 14 August 2014 Q3 Interim Report 12 November 2014
Kim Ullman, CEO +46 31 85 50 03 eller +46 704 85 50 03 kim.ullman@ concordiamaritime.com
Anna Forshamn, CFO +46 31 85 51 72 eller +46 704 85 51 72 anna.forshamn@ concordiamaritime.com
Concordia Maritime 405 19 Göteborg Tel +46 31 85 50 00 Corp. ID: 556068-5819 www.concordiamaritime.com
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