The financial year in summary

The year in brief

  • Another year with good performance in all business areas.
  • Continued operational growth.
    - Total income amounted to SEK 36.4 billion compared with SEK 33.6 billion in 2014.
    - EBITDA (operating profit before depreciation), excluding valuation of our investment properties and sale of non-current assets, was the highest ever, amounted to SEK 9.4 billion compared to SEK 9.3 billion 2014.
    - EBITDA is in line with last year mainly as a result of improvements in the Ferry Operations and Shipping segment while the Drilling operation has decreased due to the challenging market situation.
    - Profit before tax was SEK 4.5 billion, compared with SEK 2.8 billion in 2014, including sales of non-current assets amounting to SEK 2.3 billion and MSEK 212 respectively.
  • A healthy balance sheet with an equity ratio of 36% as at 31 December 2015.
  • Ferry Operations improved the result compared to 2014. This was achieved through tonnage changes and continued improvement in the current operations. Stena Line has during the year focused on increasing the revenues on the routes whilst at the same time implementing cost-saving measures.
  • The result of Stena Drilling decreased compared with the previous year as a consequence of the challenging market situation. Also, three of the drilling units performed compulsory surveys, SPS (Special Periodic Survey), which is done every fifth year in order to assure the security demands. The average commercial utilisation rate was just over 98%. Stena Drilling has during the year focused on the cost-cutting programme that has been implemented in order
    to address the current market situation.
  • Stena Bulk improved its profit markedly compared with 2014, primarily as a result of a stronger tanker market. However, the LNG segment had a more challenging market situation since the previous contracts with high charter rates expired.
  • Stena RoRo reported a continued high fleet utilisation rate during the year and has also worked on chartering out and selling vessels that are no longer part of Stena Line operations.
  • Stena Property’s operations continue to be profitable with a very high average occupancy rate of around 94%.
  • Stena Adactum had yet another successful year in all the portfolio companies and reported sales growth in all companies except for Stena Renewable.
  • The Group’s liquidity has strengthened further during the year as a consequence of the sale of the Helsingborg–Helsingør route, sales of vessels and properties and increase of the credit line of the Group’s USD credit facility.

Significant business events 2015

Ferry Operations

In January, the Stena AB Group and Scandlines signed an agreement regarding the sale of the Helsingborg–Helsingør ferry service to a European infrastructure fund managed by First State Investments. The Helsingborg–Helsingør service has been operated on an equal ownership basis through a cooperation agreement between the Stena AB Group and Scandlines. The sale included the five vessels used on the route. As a result of the sale the Stena AB Group reported a capital gain of SEK 1.7 billion.

The service between Holyhead and Dun Laoghaire was discontinued in February.

The vessel Stena Scandinavica was sold in June for MSEK 800.

In October Stena Explorer was sold for MUSD 3.6 and Stena Scanrail was sold for MUSD 1.0.

Stena Line continued its work during the year to improve profitability by optimising tonnage.

Offshore Drilling

A one-year lease agreement was signed in December for the drillship Stena Carron with an option to extend. This was a very important agreement for the company and as a result Stena Carron began operating again in January 2016. During 2015, Stena Carron was moored off Las Palmas with a skeleton crew and was non-operational.

Stena Drilling focused during the year on the cost-cutting programme that has been implemented in order to address the current market situation.

Bulk

Stena Calypso was sold in February for MUSD 9.6. The sale took place through a hire purchase agreement.

The newly built IMOIIMAX vessels Stena Impression and Stena Imperial were delivered from the shipyard in China in February 2015 and July 2015 respectively.

Stena Companion was sold in August but with a three-year bareboat charter in return.

In November an agreement was signed with the shipyard CSSC Offshore & Marine Engineering (CSSC OME) in Guangzhou in China to build a further three IMOIIMAX vessels. One of these vessels will be owned by Stena Weco. Delivery is scheduled for the end of December 2017 and the first half of 2018.

RoRo

In January, Stena Feronia was sold for MEUR 23 and was delivered at the turn of the month March/April.

In February, Marine Atlantic exercised its purchase option for the vessels Highlanders and Blue Puttees totalling MEUR 138 for the two vessels. Blue Puttees was delivered in December 2015 and Highlanders was delivered in February 2016.

Adactum

At the end of April 2015, Stena Adactum entered into an agreement regarding the divestment of the Mediatec companies with effect from 1 January 2015. The purchaser is NEP, which operates in the same sector.

Stena Adactum enjoyed another successful year and continued to develop and expand its operations.

Property

A property in London was sold in February for MGBP 19.

In March 2015, properties were sold in Gothenburg for MSEK 925.

In November, three properties were acquired in Gothenburg containing a total of 210 apartments.

In December, Stena Fastigheter acquired the Pripps site in Gothenburg together with Ikano Bank. The site is 155,000 square metres in size and has just over 66,000 square metres of commercial floor space.

The occupancy rate was high during 2015 with an average of 94%. In Sweden the occupancy rate for residential premises was approximately 99% and for commercial premises approximately 89%. Outside Sweden, the average occupancy rate was around 79% due to a weak market in the Netherlands.

Finance

In February 2015, we renegotiated our existing MUSD 600 credit facility. As a result, the margin was reduced, the term was extended and the credit line was increased to MUSD 800.

Subsequent events

On 14 January 2016, Stena Drilling Ltd in Aberdeen received
a ruling from Oslo District Court regarding potential capital gains tax in Norway following divestment of the drilling rig Stena Dee in 2006. The court ruled entirely in accordance with the claims presented by the Company. The Norwegian Tax Agency opted not to appeal the ruling and it has now taken legal effect.

The vessel Highlanders was delivered to Marine Atlantic in February 2016.

During February 2016, the vessel M/S Trelleborg was sold.

During the first quarter of 2016 we terminated our facility from Swedish Export Credits Guarantee Board (EKN) with a total credit line of MSEK 6,660.

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Consolidated income statement