THE FINANCIAL YEAR IN SUMMARY

 

The year in summary

  • Another year of high operational performance within all sectors.
  • Continued operational growth.
    – Total income SEK 30.2 billion compared to SEK 27.4 billion in 2012.
    – Consolidated EBITDA (income from operation before depreciations) excluding net valuation of ­investment ­properties and sale of assets, is the highest EBITDA ever, increased by 10% to SEK 7.7 billion compared to 2012.
    – EBITDA has increased in all sectors compared to 2012, mainly for the ferry operations, LNG, Property and ­Adactum operations.
    – Income before taxes amounted to SEK 2.1 billion compared to SEK 1.8 billion in 2012, including net gain on sale of assets amounting to MSEK 76 and MSEK 90, respectively.
  • Healthy balance sheet with a solidity of 33% as of 31 December 2013.
  • Ferry operation improved the EBITDA, excluding restructuring expenses MSEK 121 by MSEK 372 in 2013 compared to 2012. It was achieved by strategic acquisitions, tonnage changes and continued improvements in the current operation. The focus forward is to increase the revenues on our routes at the same time as the business is reviewed for cost reduction actions.
  • Stena Drilling has had another strong year with an average commercial utilization of more than 97%. Despite two SPS during the year, the net income was on the same level as last year. Stena Drilling has a strong contract coverage for the coming years with four out of seven units of our drilling fleet contracted to 2018 or beyond.
  • Stena Bulks operation in Stena Weco continued to improve during 2013. However, the market has been continuously weak with low tanker rates.
  • Stena LNG generated good results in 2013 due to new strong contracts and high utilisation of the fleet.
  • Stena RoRo showed a continued high utilization of the fleet and has during the year also worked with chartering out or selling vessels no longer in the operation of the Ferry Operations.
  • Stena Property continued to be profitable during 2013. The occupancy rate was high in Sweden was, on average, 97%.
  • Stena Adactum had another profitable year in all business areas and improved the total result compared to last year at the same time as business development and expansion were performed. During 2013, Stena Renewable has completed further new windmills and owned 86 windmills as per 31 December 2013.
  • Available liquidity remains high. The credit profile of the group is strong, due to long term securitization of the credit facilities.

Significant business events

Ferry Operations

As of 1 January 2013, Mr. Carl-Johan Hagman became ­Managing Director of Stena Line Holding B.V. Mr. Carl-Johan Hagman is also responsible for Shipping of the Group and Managing Director of Stena Rederi AB.

In May 2013, Stena Voyager was sold to Stena Recycling in Landskrona, Sweden. The vessel had already been written down and was sold without any effect on the result.

During the year, Stena Line has continued their work re­gard­ing increased profitability by increased revenue and lowered costs.

Stena Drilling

In March 2013, Stena Carron extended the charter for Statoil/Sonangol, which expired at the end of 2013, for a new three-year period.

In May 2013, a three-year contract was signed with Tullow Oil Plc for Stena DrillMAX, following its five-year SPS (Special Periodic Survey), which was completed in May 2013.

On 26 June 2013, we ordered two new semi-submersible Moss CS60 drilling rigs from Samsung Heavy Industries in South Korea with an option to cancel one unit. The contractual delivery dates of these vessels are March 2016 and ­September 2016, respectively. The capital cost for each unit is estimated to be approximately MUSD 800.

In 2013, the drillship Stena Forth has received an extension of the contract from Hess for up to an additional five years starting from 29 October 2014.

Stena Bulk

In January 2013 the newbuilt Suezmax vessel Stena Sunrise was delivered from the Samsung yard in South Korea.

In March 2013, Stena Bulk declared two options to, to­gether with the JV partner Golden Agri Resources, build two ­IMOIIMAX vessels. In total, Stena Bulk has ordered 8 ­IMOIIMAX vessels in collaboration with partners.

Stena LNG

In June 2013, we entered into a new contract for the LNG ­carrier Stena Blue Sky for a contract period until 2015.

Stena RoRo

In January 2013, Stena Baltica was sold through a hire-­purchase contract to an Italian ferry operator, SNAV Spa in Naples, Italy for a profit of MSEK 23.

In May 2013, the RoPax vessel Stena Alegra was acquired for MSEK 89. The vessel has been employed within the Stena Line route network until October 2013, and in November 2013 was chartered out on a bareboat charter.

In December 2013, another three RoPax vessels were acquired, Stena Egeria, Stena Partenope and Stena Trinacria, for a total investment of MEUR 69.5.

Other shipping

In January 2013, Northern Marine Management Ltd acquired the remaining shares of its joint venture (50%) partner Austen Maritime Group. The Group is consolidated as a subsidiary as from 1 January, 2013.

In March 2013 a new ferry route was opened between ­Sokcho in South Korea and Zarubino and Vladivostok in Russia. This is a step towards an expansion on the Asian markets.

Stena Adactum

Ballingslöv International AB has in January 2013 acquired all shares in the English kitchenmaker Southdown Kitchen Ltd, that has the brand name Manhattan Furniture. Through this acquisition Ballingslöv International is strengthening its position on the English market.

In the first quarter of 2013, Mediatec was split into two ­separate groups, Mediatec Broadcast and Mediatec Solutions. During 2013, Adactum increased its ownership in the two companies and as of 31 December 2013 Adactum held a 62.5% stake in Mediatec Broadcast and a 63.5% stake in Mediatec Solutions.

During 2013, Stena Renewable put 53 windmills into operation, which increased the installed effect with 223 MW with a production capacity of 0.7 TWh. Total amount of windmills as per 31 December 2013 were 86.

Stena Property

In August 2013, we acquired a commercial fully let office property, with a total size of approximately 3,000 sqm, in ­London in the U.K. for a total investment of MGBP 15.6.

During the summer of 2013, Stena Realty signed a lease with Jacobs Engineering, one of the world’s largest companies for technology consultation, for approximately 8,000 sqm in a newly built house in Houston. In the end of 2013 the ­chemistry and energy group Sasol also signed a lease of 17,500 sqm. Because of the new lease Stena is constructing another building in Houston. The investments in Houston amounts to approximately MUSD 100 and both leases are long-term leases. The construction of the new office building is expected to be ­completed in the third quarter of 2014.

In 2013 the final stage of Ängby Park in west Stockholm was completed. Ängby Park consists of 320 rental apartments that has been finalized in different stages since 2011. The occupancy rate was high during 2013, on average 97%. In Sweden the occupancy rate for residential properties was 98% and 83% for commercial properties. The occupance rate abroad was, on average 78% due to a weak Dutch market.

During 2013 properties were sold for a total gain of MSEK 51.

Stena Finance

On 5 March 2013 we called for repayment of the Senior Note with remaining debt MUSD 128.8, due 2016. The payment was done on 5 April 2013.

Subsequent events

In January 2014, the Ropax vessel Dieppe Seaways, was acquired. The vessel is a sister vessel to Stena Superfast VII and Stena Superfast VIII. Dieppe Seaways is on a charter to DFDS Seaways until November 2014.

In January 2014, a ten year bond of MUSD 600 was issued. The purpose of this transaction was to extend existing profile of amortization and pay off outstanding amounts under our credit facility.

In February 2014 another ten year bond of MUSD 350 and MUSD 650 was issued in a so called Term loan B, which is a seven year loan with low rate of amortization. The securities for both bond and loan consists of the units Stena DrillMAX and Stena Carron. The purpose of this transaction is to extend existing profile of amortization and increase liquidity. As a result of the transaction the available facilities in existing RCF (Revolver Credit Facility) of MUSD 1,000 will be reduced to MUSD 600.

In February 2014, Stena Line acquired the operation on the route Rosslare (Ireland) – Cherbourg (France). The acquisition will benefit the network as well as improve Stena Line’s strategic position in the southern part of Ireland. The operation will be taken over as from April 2014.