Stena AB

Stena Finance

Stena Finance’s main task is to manage the funding requirements of the Stena Group, both short and long term. Stena Finance also manages the operational business units’ financial risks in the interest rate, currency and oil markets. In addition, Stena Finance manages the Group’s liquidity and financial investments. Another important role is to act as a resource for the operational units when identifying and analysing new business deals.

Stena proactivity brings high liquidity

Hesitant global economy

The world economy is still hesitant. Industrial activity during the year felt the pressure of falling commodity prices and a slowdown in China, while low oil prices stimulated consumption. In the United States, which has had a zero interest rate environment for many years, the Federal Reserve raised interest rates in December 2015. The interest rate increase is interpreted as a strengthening of the economy.

Stronger liquidity

Stena continued its proactive efforts to improve liquidity during the year. Stena Line sold the Helsingborg–Helsingør ferry route to a European infrastructure fund, Stena Property sold properties in Lövgärdet and increased its borrowings. Together with an expanded credit facility, this has strengthened liquidity by SEK 8.2 billion. Stena has strengthened its liquidity to ensure the Group is well equipped when we are affected by a weak oil exploration market due to low oil prices.

Portfolio investments

In recent years, Stena has reduced its shareholdings in companies active in oil and gas, and has instead taken positions in companies in the healthcare, pharmaceutical and retail sectors. The equity portfolio consists of around 50 companies that are listed on Nordic, European, US and Asian markets. The value of Stena’s investment portfolio excluding Adactum increased by 6.0%, compared with a global stock market increase of 1.3% (MSCI World Index).

LIQUIDITY1)

1) Stena Group as of 31 December 2015

INTEREST-BEARING LIABILITIES1)

INVESTMENT PORTFOLIOS1)

Peter Claesson

CEO, Stena Finance

In 2015, we have seen a more unsettled financial and credit market with falling stock prices and increased margins in the bond market among the consequences. The timing of the capital market activities we conducted in spring 2014 has proved beneficial in hindsight. Our flexibility has been increased by an extension of our amortisation profile and a further strengthening of our liquidity during the year. We reduced our rate of investment in 2015 and will continue to be more selective about new projects in the period ahead. Our high level of liquidity, and back-loaded maturity profile combined with future cash flow leave the company well-equipped to face future challenges.

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