1
Remium CONCORDIA MARITIME AB (PUBL) 22 Augusti 2017
Stena is the main owner – in short ..
Ferries Offshore Drilling Property Adactum Shipping
Small company but part of a large network
Utvecklat över 100 nybyggen
Befraktning och kommersiell operation av
över 100 fartyg
Teknisk drift & bemanning av över 130 fartyg
Stena Teknik
Stena Bulk Stena Weco
Stena Sonangol Suezmax Pool
Northern Marine Management
Concordia Maritime
A fleet of 14,5 efficient and flexible ships
10 P-MAX
1 SUEZMAX
2 IMOIIMAX
3 x 0,5 ECO MR
P-MAX
Length 183 m
Breadth 40 m
Dwt 65,200
30% higher cargo intake
Concordia’s Next generation MR product tankers
Length 183 m
Breadth 32,3 m
Dwt 50 000
IMO2MAX – energy- and cargo efficiency
11
Fleet and employment strategy
Spot CVC 50% charter in (spot) Time Charter Option Employment: 7
2017 2018 2019
Stena Supreme
ECO MR #3ECO MR #2ECO MR #1
Stena ImportantStena Image
Stena PresidentStena Perros
Stena PenguinStena PremiumStena Provence
Stena PolarisStena Paris
Stena ProgressStena Primorsk
Stena Performance
Suezmax
IMOIIMAX
P-MAX
Product tankers
Eco MR
Crude tankers
2017 2019 2018
Stena Weco Pool
Stena Sonangol Suezmax Pool
7
Challenging market – too many new ships and high oil/products inventories – but it is changing
MR Clean WW index Earnings 2014 - 2017
$/Day
Average MR Clean Earnings (Clarksons)
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
01-jan 01-feb 01-mar 01-apr 01-maj 01-jun 01-jul 01-aug 01-sep 01-okt 01-nov 01-dec
2014 2015 2016 2017
9
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
01-jan 01-feb 01-mar 01-apr 01-maj 01-jun 01-jul 01-aug 01-sep 01-okt 01-nov 01-dec
2014 2015 2016 2017
Suezmax WW index Earnings 2014 - 2017
Average Suezmax Long Run Historical Earnings (Clarksons)
$/Day
10
Income per type, spot Q2
*Clarksons Average MR Clean Earnings/Average Panamax Dirty Earnings
11
0
10 000
20 000
Q1 Q2 Q3 Q4 Q1 Q2
Clarkson av. MR Clean Earnings Concordia Maritime
Outperforming market: MR
USD/day
2016 2017
12
Outperforming market: Suezmax
0
20 000
40 000
Q1 Q2 Q3 Q4 Q1 Q2
Clarkson av. Suezmax index Concordia Maritime
USD/day
2016 2017
13
The second quarter in short
• Weak markets due to seasonality, high inventory levels, reductions in Opec's production and extensive ship deliveries
• Earnings all Product $ 13,000 (incl TC) • TCE spot earnings above average market earnings*
• Product: USD/day 11,700 vs 9,600 • Suezmax: USD/day 17,300 vs 15,200
Events in the second quarter
• Chartering of two ECO MR ships (50%) together with Stena Weco.
• Time charter contract for P-MAX tanker Stena Paris (1+1)
• Another quarter without a Lost Time Injury*
Q2 H1
2017
2016
2017 2016
Total income, MSEK 211,1 280,8 436,0 544,4
Result after tax, MSEK –43,9 12,4 –85,1 45,8
EBITDA, MSEK 10,0 57,2 39,3 160,6
14
*An accident that results in an individual being unable to carry out his or her duties or return to work on a scheduled shift on the day after the injury, unless this is due to delays getting medical treatment ashore.
*Clarksons “Average MR Clean Earnings”/ “Suezmax Long Run Historical Earnings”
Result Second quarter 2017
SEK million Q2 2017 Q2 2016
Total income 211,1 280,8
Operating costs –137,3 –86,4
Seagoing personnel costs –50,3 –47,4
Personnel expenses –5,2 –4,8
Other external costs –8,3 –85,1
Depreciation –55,4 –56,5
Total operating costs –256,5 –280,2
Operating result –45,4 0,7
Interest and similar income 20,4 24,0
Interest and similar expense –18,8 –12,3
Financial net 1,6 11,7
Result before tax –43,9 12,4
Tax 0,0 0,0
Result after tax –43,9 12,4
15
Key ratios Second quarter 2017
Q1 2017 Q1 2016
Total income, SEK m 211,1 280,8
EBITDA, SEK m 10,0 57,2
Operating result, SEK m –45,4 0,7
Result before tax, SEK m –43,9 12,4
Result after tax, SEK m –43,9 12,4
Equity ratio, % 49 44
Available liquid funds, SEK m 281,0 385,9
Return on equity, % –3 8
Result per share after tax, SEK –0,92 0,26
Equity per share, SEK 38,29 39,83
*including unutilised credit facilities but excluding investment in corporate bonds and USD deposits
16
Cash, deposits, bonds and undrawn facilities
Cash on accounts and accessible cash + short inv. KSEK KUSD
Cash on accounts 186 696 22 141
Deposit – short inv. 252 966 30 000
Bonds 154 309 18 300 Shares Navios Containers 7 167 850 Sum 601 139 71 291
SHB facility London 84 322 10,000
SHB facility Gothenburg 10,000 1 186
Sum 695 461 82 477
• Amortering P-MAX MUSD -5,1 • Exit USD hedge MUSD 1,7 • Utdelning aktieägarna MUSD -2,7 • Investering dockning Stena Supreme MUSD -1,8 • Investering dockningar Stena President och Stena Perros MUSD -0,7 • Uppbyggandet av portföljen med företagsobligationer fortsätter
Earning days and off hire days
18
• Oplanerad off hire Q2 2,3 dagar för Stena Performance - propellerreparation • Stena Supreme dockade (Odense - Danmark) under Q2 • Stena Perros och Stena President kommer att dock under 2H. Deras dockningar kommer
att bli dyrare än budgeterat pga större stålarbeten, en hel del jobb med tankarna + förstärkning Panamakanalen. Budget MUSD 2 – estimat MUSD 3
Earning Planned Unpl. Total Earning Planned Unpl. Totaldays off hire off hire days days off hire off hire days
Stena Paris 90,0 0 0,0 90 91,0 0 0,0 91Stena Provence 90,0 0 0,0 90 91,0 0 0,0 91Stena Primorsk 90,0 0 0,0 90 91,0 0 0,0 91Stena Performance 90,0 0 0,0 90 91,0 0 2,3 89Stena President 90,0 0 0,0 90 91,0 0 0,0 91Stena Perros 90,0 0 0,0 90 91,0 0 0,0 91Stena Progress 90,0 0 0,0 90 91,0 0 0,0 91Stena Polaris 88,0 0 2,0 90 91,0 0 0,0 91Stena Penguin 88,5 0 1,5 90 91,0 0 0,0 91Stena Premium 90,0 0 0,0 90 91,0 0 0,0 91Stena Image 90,0 0 0,0 90 91,0 0 0,0 91Stena Important 90,0 0 0,0 90 91,0 0 0,0 91Stena Supreme 90,0 0 0,0 90 91,0 25 0,0 66Total days 1 166,5 0 3,5 1 170,0 1 183,0 25 2,3 1 155,7
Q1 2017 Q2 2017
EBITDA per quarter
USD million Q2
2017 Q1
2017 Q4
2016 Q3
2016 Q2
2016 Q1
2016 Q4
2015
Product tank, time charter 3,6 4.0 5.6 5.4 4.5 2.4 1.3
Product tank, spot, owned or leased tonnage 0,0 0.7 –0.2 0.5 0.9 7.9 10.3
Product tank, spot, chartered tonnage –0,2 -0.2 –0.2 –0.2 0.1 0.1 0.0
Sale of vessels — – 2.9 – – – –
Product tanker total 3,4 4.5 8.1 5.7 5.5 10.5 11.6
Suezmax spot, owned or leased tonnage –1,4 -0,4 1.4 0.9 2.2 2.4 2.8
Suezmax spot, chartered tonnage — – 0.0 –0.2 0.3 0.3 0.9
Sale of vessels — – 3.5 – – – –
Suezmax total –1,4 -0,4 4.9 0.7 2.5 2.7 3.7
Admin. and others –0,9 -0,8 –0.6 –0.5 –1.0 –1.0 –1.4
Total 1,1 3.3 12.4 5.9 7.0 12.2 13.9 19
Sustainability report
20
SAFETY FIRST Our overall objective is to conduct our vessel operations and business activities in a manner that protects both the vessels and the employees working under our control and supervision. Our goal is zero accidents, achieved by establishing a strong safety culture and a top quality approach at all levels within our organisation.
ENVIRONMENTAL RESPONSIBILITY
FINANCIAL SUSTAINABILITY
We are committed to reducing the impacts of our vessel operations and business activities on the environment. We will work continuously to reduce emissions and increase energy efficiency.
Our goal is to ensure financial development that enables us to invest in our continuing development. In this way, we can create value for employees, shareholders and society – in the short and long term.
Targets and outcomes Q2 2017
Safety first Q2
2017 Q2
2016 H1
2017 H1
2016 Target
2017 FY
2016
LTI 0 0 0 0 0 0
LTIF 0 0 0 0 0 0
Number of inspections with more than five observations (owned vessels) 0 0 0 0 0 0
Average number of vetting observations (entire fleet) 3,0 1.9 2,3 2,3 <4 2,5
Number of port state controls resulting in detention 0 0 0 0 0 0
Number of piracy-related incidents 0 0 0 0 0 0
Damage to property 1 3 2 5 0 9
Medical treatment case 0 0 1 0 0 3
Restricted work case 0 1 0 1 0 2
High potential near miss 2 2 2 3 0 8
High risk observation 0 0 0 0 0 0
21
Targets and outcomes Q2 2017
Environmental responsibility Q2
2017 Q2
2016 H1
2017 H1
2016 Target
2017 FY
2016
Oil spills, litres 0 0 0 0 0 0
Reduced fuel consumption, mt/day (owned vessels) 1,5 0.6 1,3 0,5 0,3 0,8
Reduced CO2, mt 2 700 960 4 707 1 828 2 800 5 215
Reduced SOx, mt 23,0 12 4 015 22,8 36 39
Reduced NOx, mt 76,0 27 131,0 53,8 80 145
Reduced emissions of particulates, mt. 0,9 0.3 1,6 0,6 0,9 1,7
22
Market
Limited contracting of new vessels (MR 40’000-54’000 dwt)
0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015 2016 2017
Nr of vessels
MR/Handysize, as of July.1
35 40 57100
124 113 118 136164 160
10974 55
81 100142
108
36
44
4217 9
4
27
11
-80-60-40-20
020406080
100120140160180
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
# of
ves
sels
Delivered Reported under constructionConstruction start not reported ScrappedScrap candidates, age 25+
OPEC output vs Call-on-OPEC
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
29,0
29,5
30,0
30,5
31,0
31,5
32,0
32,5
33,0
33,5
34,0Q
1'11
Q2'
11Q
3'11
Q4'
11Q
1'12
Q2'
12Q
3'12
Q4'
12Q
1'13
Q2'
13Q
3'13
Q4'
13Q
1'14
Q2'
14Q
3'14
Q4'
14Q
1'15
Q2'
15Q
3'15
Q4'
15Q
1'16
Q2'
16Q
3'16
Q4'
16Q
1'17
Q2'
17Q
3'17
Q4'
17Q
1'18
Q2'
18Q
3'18
Q4'
18
OPE
C sp
are
capa
city
(EIA
est
)
Mill
ion
barr
els p
er d
ay
Call-on-OPEC Call-on-OPEC Opec actual output OPEC spare capacity
Product Tanker cycle, – assumptions 3,5% WGDP and 1,4 mbd oil cons growth
2015 Fleet growth 6% Stockbuild
2019 Fleet growth 1-2% (so far) Stocks?
2016 Fleet growth 6% Stockbuild FH Stock draw SH
2017 Fleet growth 5% High stocks Min arbitrage
2018 Fleet growth 1-2% Stocks ”normalized” Tanker demand up 4-5%
$/day 20-25,000
29
$/day 10-12,000
Gradual improvement from next year
Q & A
Styrelsemöte januari 31, 2017