IMOIIMAX Performance Phase
Stena Bulk is one of the world’s leading tanker operators, offering safe and cost-effective transportation of crude oil and refined petroleum products by sea. This requires a holistic perspective – from development and construction to crewing and chartering of first-class tankers.
Major transaction makes Stena Bulk’s operation more long-term
During the year Stena Bulk bought out the remaining 50 percent of Stena Weco from Weco Shipping A/S. In connection with the transaction, Stena Bulk underwent a reorganisation, with the creation of the business areas Products & Chemicals, Crude & Fuel and LNG.
Now that Stena Bulk owns 100 percent of the former Stena Weco, it can operate these vessels in a more long-term perspective than before.
After obtaining full ownership Stena Bulk also decided to move its Danish office and now occupies a new office on the outskirts of Copenhagen with Stena Rederi AS, Stena Line, Stena RoRo and NMG. In total, there are about thirty employees at the office.
Within Products & Chemicals, the company is now able to offer customers more types of products, including methanol, ethanol and chemicals, thanks to the IMOIIMAX vessels’ increased flexibility, such as more tanks. In 2017, the IMOIIMAX vessels’ flexibility meant that Stena Bulk had a higher utilisation rate and higher earnings than the company would otherwise have had.
The suezmax segment in the Crude & Fuel business area started 2017 very strongly but ended the year weaker. The sector is affected by more vessels being delivered than are in demand and 2018 is expected to be as challenging as the end of 2017. Stena Bulk is well positioned as most of the time charter vessels were redelivered during the year.
The LNG segment developed well at the end of the year and the positive development is expected to continue in 2018.
0.1 Lost Time Incidents (LTI) during the year
WELL FUNCTIONING PARTNERSHIPS
The cooperation with the Angolan oil company Sonangol in the Stena Sonangol Suezmax pool has developed well since it began thirteen years ago. Today’s challenge is to increase the number of vessels in order to better triangulate and optimise the trading. The goal is for the pool to consist of 30 vessels. In 2017, four more vessels joined the pool – Stena Surprise, Nordic Rio and two newbuildings, Sonangol Cazenga and Sonangol Maiombe.
Golden Agri-Stena, the joint venture that Stena Bulk operates with Golden Agri-Resources, is developing positively. The relationship is very strong, due to the fact that the companies constantly identify new market opportunities together.
DIGITAL SUPPORT THAT INCREASES EFFICIENCY
Stena Orbit is the company’s new digital platform for tanker trading. The platform, which was developed during the year and launched on 1 July 2017, makes customer contacts and administration much more efficient. Efficiency will increase even more as additional features are implemented in the platform.
We are explorers.
CEO, Stena Bulk
We are well positioned to renew our chartered tonnage, with a large part having been returned before the market fell, mainly during the second half of 2017. The positioning and timing of a resumption of more chartered tonnage is under evaluation, but we see ourselves slowly increasing our exposure in 2018 when we are able to charter in vessels at a low cost. There will be a significant focus on working with our partners to provide the entire tanker group with a structure that is stable for the future. LNG is developing positively, and 2018–2019 will be critical and probably a period in which we have good scope for finding long-term opportunities for a positive outcome. The purchase of Stena Weco has progressed well during the year, both within the business and in the merger with Stena Bulk. Work on Stena Orbit continues and means increased opportunities to create a unique customer offering that sets us apart from competitors.