stena ab financial report 2014

Transcription

STENA AB
FINANCIAL REPORT
2014
CONTENTS
DIRECTORS’ REPORT
2
GROUP
CONSOLIDATED INCOME STATEMENTS
8
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
9
CONSOLIDATED BALANCE SHEETS
10
CONSOLIDATED STATEMENTS OF CHANGES
IN SHAREHOLDERS’ EQUITY
12
CONSOLIDATED STATEMENTS OF CASH FLOWS
13
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
14
PARENT COMPANY
INCOME STATEMENTS
71
BALANCE SHEETS
72
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
73
STATEMENTS OF CASH FLOW 73
NOTES TO THE FINANCIAL STATEMENTS
74
PROPOSED TREATMENT OF THE UNAPPROPRIATED EARNINGS 78
AUDIT REPORT
79
FIVE-YEAR SUMMARY
80
The cover picture shows the master at work on the
bridge wing of the RoRo vessel Stena Foreteller.
DIRECTORS’ REPORT
DIRECTORS’ REPORT
General information about the business
The Stena Group is one of the largest family-owned companies in Sweden and has operations in five business areas: Ferry
Operations, Drilling, Shipping, Property and other investments
within Adactum.
Ferry operations, one of the world’s largest international passenger and freight service enterprises, are run via Stena Line in
Scandinavia, the North Sea, the Irish Sea and the Baltic Sea.
Drilling operations, using semi-submersible drilling rigs and
drillships, are run by Stena Drilling from its head office in
Aberdeen in Scotland and through its global organisation with
offices in the USA, Norway, Cyprus, Luxembourg, Singapore,
Korea and Australia.
Shipping operations are run by Stena RoRo on the RoRo and
RoPax ferry market and by Stena Bulk on the tanker market
and LNG (Liquefied Natural Gas) market. Stena RoRo has its
head office in Gothenburg. Stena Bulk has its head office in
Gothenburg as well as offices in Houston, Singapore and
Limassol. Shipping operations also include the manning of
ships via Northern Marine Group, which has its head office
in Glasgow, as well as offices in Manila, Mumbai, S ingapore,
St Petersburg, Gothenburg, Hamburg, Houston and Aberdeen.
Stena Teknik in Gothenburg is responsible for technical maintenance and development.
Stena Property, with its head office in Gothenburg, mainly
owns properties in Gothenburg, Stockholm and Malmö, and is
one of Sweden’s largest privately owned property companies.
The international property division, based in Amsterdam, has
property holdings in the Netherlands, France, Luxembourg,
Hungary, Germany, the USA and the United Kingdom.
Stena Adactum, based in Gothenburg, invests in companies
that fall outside Stena’s traditional core operations. The portfolio currently includes Ballingslöv, S-Invest, Envac, Mediatec
and Stena Renewable as well as the associated companies
Gunnebo and Midsona.
Stena Finance has operations in Gothenburg, Luxembourg,
Limassol, Zug, Amsterdam, London and Singapore.
The parent company of the Group is Stena AB (publ), company registration number 556001-0802. The parent company
is a limited liability company and has its registered office in
Gothenburg, Sweden. The address of the head office is
Masthuggskajen, SE-405 19 Göteborg.
The year in brief
• Another year during which all business areas have
performed well.
• Continued operational growth.
– Total income amounted to SEK 33.6 billion compared to
SEK 30.2 billion in 2013.
2
STENA AB 2014
– Consolidated EBITDA (operating profit before depreciation), excluding the valuation of our investment properties and the sale of non-current assets, was the highest
ever, increasing to SEK 9.3 billion – a 20% rise on 2013.
– EBITDA has increased mainly as a result of the majority of
the business areas reporting an improvement compared to
2013, particularly Drilling, Ferry Operations and Shipping.
– The pre-tax profit was SEK 2.8 billion compared to SEK
2.1 billion in 2013, including sales of non-current assets
amounting to MSEK 212 and MSEK 76 respectively.
• A healthy balance sheet with an equity ratio of 31% as at
31 December 2014.
• Ferry Operations improved the EBITDA, excluding restructuring costs of MSEK 314, compared to 2013. This was
achieved through strategic acquisitions, tonnage changes
and continued improvement in current operations. The
focus during the year was on increasing revenues on our
routes whilst at the same time continuing to review operations and implement cost-saving measures.
• Stena Drilling has had yet another strong year with
improved financial results compared to the previous year.
The average commercial utilisation rate was just over 98%.
• Stena Bulk improved its profit markedly compared to 2013,
primarily as a result of a stronger tanker market. The LNG
segment generated good results during 2014 due to strong
contracts and a high utilisation rate.
• 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 at all the
portfolio companies and reported a profit in line with the
previous year. The portfolio companies continue to expand
on growth markets, primarily in Asia.
• The Group’s liquidity during the year was strong and the
credit facility renewal profile has been extended.
Significant business events
Ferry operations
The RoPax vessel Stena Superfast X (formerly Dieppe Seaways)
was acquired in January 2014. The ship is a sister ship of Stena
Superfast VII and Stena Superfast VIII.
In April 2014, Stena Line acquired operations on the
Rosslare (Ireland)–Cherbourg (France) route. This service is
contributing to the development of Stena Line’s route network
and is reinforcing Stena Line’s strategic position in Ireland.
Stena Line continued during the year to work on increasing
profitability by optimising tonnage.
The successful “floating border shop” concept was introduced on the Scandinavian routes in 2014. The concept has
proved highly popular among our passengers.
Offshore Drilling
On 21 November, Statoil cancelled the three-year charter
agreement for the drilling vessel Stena Carron. Stena has
received compensation of MUSD 276 for the remaining period
of the contract.
Our contract with Hess for Stena Forth was renegotiated in
December 2014. The new contract will run through to the
second quarter of 2017 with an option for a further one-year
extension.
Bulk
At the beginning of the year, the Golden Stena Weco joint
venture between Stena Weco and Golden Agri Resources took
delivery of the five vessels purchased in 2013.
The office in Rio de Janeiro was closed during the year due
to a fall in the transport volume from customers in Brazil.
In December 2014, the company divested its 35% shareholding in Paradise Tankers, where Stena Bulk jointly owned
three Panamax vessels. Stena Bulk acquired one of these
vessels in conjunction with the transaction.
RoRo
The RoPax vessel Etretat was delivered in the spring to the
French company Brittany Ferries on a new bareboat charter.
The RoPax vessel Stena Egeria was completed at a Chinese
shipyard and was delivered in June to Bohai Ferries for operation between China and Korea.
The RoPax vessels Partenope and Trinacria had their contracts extended with an existing customer up to and including
April 2015.
In late autumn 2014, a new agreement was reached with
Interislanders in New Zealand, which means that the RoPax
vessel Alegra will undergo an extensive rebuild before a fiveyear bareboat charter party comes into force. The vessel will
be delivered during the second quarter of 2015.
In December 2014, new charter parties were signed for
Stena Foreteller, Stena Forecaster and Stena Forerunner.
Other Shipping
I In July 2014, it was decided to discontinue the service
between Sokcho in South Korea and Zarubino and Vladivostok
in Russia.
Adactum
Stena Adactum had yet another successful year and continued
to develop and expand its business areas.
Properties
In July, a property in London was sold for MGBP 41 and in
November a property was sold in Stockholm for MSEK 245.
In 2014, Stena Property completed 80 apartments at Ängby
Park in Stockholm and in central Malmö. Construction of 322
apartments commenced in Stockholm and Lund.
In 2014, Stena Property signed an agreement to purchase a
commercial property currently under construction in Gothenburg for MSEK 868. The property, which comprises office
premises with total floor space of 25,000 sqm, has been let to
SCA on a long lease. The building is expected to be completed
at the turn of the year 2016/2017.
The occupancy rate was high during 2014, averaging 94%.
In Sweden, the occupancy rate for residential properties was
approximately 99% and for commercial properties approximately 90%. Outside Sweden, the average occupancy rate
was around 77% due to a weak Dutch market.
Finance
A 10-year bond totalling MUSD 600 was issued in January
2014. The aim of the transaction was to extend our amortisation profile and repay outstanding amounts under an existing
credit facility.
In February 2014, a further 10-year bond was issued totalling MUSD 350 as well as a Term Loan B worth MUSD 650.
The latter is a seven-year loan with a low amortisation rate.
The units Stena DrillMAX and Stena Carron have been
furnished as collateral for both the bond and the loan. The
purpose of the transaction was to extend the existing amortisation profile and free up further liquidity.
Financing of the drilling rig Stena MidMAX was completed
in July 2014.
Subsequent events
On 9 January 2015, the Stena AB Group and Scandlines entered
into 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 is
operated jointly by the Stena AB Group and Scandlines, each
with a 50% shareholding. First State European Diversified Infrastructure Fund, FCP-SIF, will take over the service from the end
of January 2015. The sale includes the five vessels used to operate the service. The sale means that the Stena AB Group will
report a capital gain of approximately MSEK 1,600, which will
be credited to the Group during the first quarter of 2015.
STENA AB 2014
3
DIRECTORS’ REPORT
In January, an agreement was signed regarding the sale of
Stena Feronia for MEUR 23. The vessel will be delivered at the
turn of the month March/April.
In February, Marine Atlantic exercised its purchase option
for the vessels Highlanders and Blue Puttees for MEUR 69
each with delivery in December 2015 and February 2016.
In February, a property was sold in London for MGBP 19.
The newly constructed IMOIIMAX-vessel Stena Impression
was delivered in February 2015 from the Samsung Shipyard in
South Korea.
In February 2015, the vessel Stena Calypso was sold via a
hire purchase agreement for MUSD 9.6.
The service between Holyhead and Dun Laoghaire was
discontinued in February 2015.
In March 2015, properties in Gothenburg were sold for
MSEK 925.
In the end of March 2015, Stena Adactum signed an agreement to sell the Mediatec companies. The buyer is the company NEP that works in the same line of business. The transaction is planned to take place during May 2015.
System for internal control and risk management
regarding the financial reporting
This description of Stena’s internal control and risk management regarding financial reporting has been prepared in
accordance with the Annual Accounts Act in Sweden.
The Board of Directors is responsible for the company’s
internal control, the overall aim of which is to safeguard the
company’s assets and thereby its shareholder’s investment.
Stena uses the COSO framework as a basis for internal control with respect to financial reporting. The COSO framework,
which is issued by the Committee of Sponsoring Organisations
of the Treadway Commission, is made up of five components;
control environment, risk assessment, control activities, information and communication as well as monitoring. The implementation of the COSO framework was executed during 2007
when the Stena AB Group for the first time became compliant
with the American legislation “Sarbanes-Oxley Act 404”. By
repayment of the bond on 5 March 2013, the Stena AB Group
was deregistered from SEC and is no longer required to report
in accordance with the Sarbanes-Oxley Act 404. Stena has,
however, kept the COSO framework as guidelines for the work
with the internal control regarding the financial reporting.
Control environment
The Board of Directors have the overall responsibility for internal control of financial reporting. The control environment
4
STENA AB 2014
forms the basis of internal control, because it includes the
culture that the Board and management communicate and
by which they work. The control environment is made up
primarily of integrity, ethical values, expertise, management
philosophy, organisational structure, responsibility and
authority, policies and guidelines as well as routines.
Of particular importance is that management documents,
such as internal policies and guidelines exist in significant areas
and that these provide employees with solid guidance. Examples of important policies and guidelines within Stena are
“Code of Conduct”, “Power Reserved List”, “Principles, convictions and basic values for Stena AB”, “Finance Policy” and
“Financial Manual” that defines the accounting and reporting
regulations. These policies and guidelines have been made
available to all relevant employees through established information and communication channels.
Furthermore, the Board has appointed an Audit Committee,
whose primary task is to ensure compliance with established
principles for financial reporting and internal control and that
appropriate relations are maintained with the company’s
auditors.
Risk Assessment
Stena carries out regular risk assessments in order to review
the risks of errors within its financial reporting. The risk assessment of financial reporting aims to identify and evaluate the
most significant risks that affect internal control over financial
reporting in the Group’s companies and processes.
During the year the Group’s overall risk assessment was
updated in order to obtain a general idea of the main risks. To
limit risks there are appropriate policies and guidelines as well
as processes and control activities within the business. The risk
assessment is updated on an annual basis under the direction
of the “Corporate Governance” staff function and the results
are reported to the Audit Committee.
Control activities
The most significant risks identified regarding financial reporting are managed through various control activities. There are a
number of control activities built into every process to ensure
that the business is run effectively and that financial reporting
provides a true and fair view.
The control activities, which aim to prevent, find and correct
potential inaccuracies, include account reconciliations, authorisations, and monthly accounts as well as analysis of these.
IT systems are scrutinised regularly during the year to ensure
the validity of Stena’s IT systems with respect to financial
reporting.
Information and communication
Policies and guidelines are of particular importance for accurate accounting and reporting and also define the control
activities to be carried out. Stena’s policies and guidelines
relating to financial reporting are updated on an ongoing basis
and available to all employees concerned on Stena’s intranet.
Information and communication relating to financial reporting
is also provided through training. The Group holds internal
seminars and conferences regularly, with a focus on quality
assurance in financial reporting and governance models.
Monitoring
The Board of Directors and the Audit Committee continuously
evaluate the information provided by the executive management team, including information on internal control. The Audit
Committee’s task of monitoring the efficiency of internal control by the management team is of particular interest to the
Board. This work includes checking that steps are taken with
respect to any problems detected and suggestions made during
the assessment by the external and internal auditors. The work
on internal control during the year has further increased awareness of internal control within the Group and improvements are
being made on continuous basis.
Internal audit
The Groups “Corporate Governance” staff function works as
the Group’s internal audit function and reports to the Audit
Committee and the deputy CEO. The function focuses on
proactively developing and enhancing internal control over the
financial reporting as well as examining the effectiveness of the
internal control. The “Corporate Governance” function plans
the work in consultation with the Audit Committee and regularly reports the findings of its examinations to the Committee.
The unit communicates continuously with Stena’s external auditors on matters concerning internal control.
Major Shareholders
All of the issued and outstanding voting shares of Stena AB
were owned as following as of 31 December 2014:
Name of beneficial owner
Number of
shares
Percentage
ownership
Dan Sten Olsson
25,500
51.0
Stefan Sten Olsson
12,250
24.5
Madeleine Olsson Eriksson
9,250
18.5
Gustav Eriksson
3,000
6.0
The holders listed above have sole voting and investment
power over the shares beneficially owned by them. Dan Sten
Olsson, Stefan Sten Olsson and Madeleine Olsson Eriksson are
siblings. Gustav Eriksson is the son of Madeleine Olsson Eriksson. Dan Sten Olsson is the only officer or director of Stena AB
who owns any voting shares of Stena AB. All shares of Stena
AB have the same voting rights.
Future developments
The Group’s overall business is expected to continue in the
same direction over the coming year and to the same extent
as in 2014.
Research and development
The Group executes vessel construction development via Stena
Teknik. The Group also makes payments to universities and
the Sten A Olsson Foundation for Research and Culture,
whose purpose include promoting scientific research and
development.
Environment
The Group conducts several environment related projects with
the purpose of reducing our general environmental impact.
Since shipping comprises a large part of Stena’s activities, one
of our major challenges is to develop more efficient vessels.
The most important measure for Stena’s shipping divisions is
to reduce energy consumption in relation to work performed.
Environmental thinking is also fundamental for Stena Fastigheter that deals with consideration for the tenants and safeguarding of the world’s limited resources. The initiative to cut
energy consumption continued and targets were set for each
building.
Since the implementation of the Environmental Code, the
port operation run by Stena Line Scandinavia AB has become
subject to permit requirements. The permit mainly regulates
noise. These requirements have been met.
Financial risks
For financial risks, see Note 1, Summary of Significant
Accounting Principles and Note 30 Financial instruments and
risk management.
Staff
In 2014, the average number of employees was 11,231 compared to 11,347 on 31 December 2013. A vital factor for
realising Stena Group’s vision is its employees, their expertise,
enthusiasm and skills.
STENA AB 2014
5
DIRECTORS’ REPORT
Future development depends on the Company retaining its
position as an attractive employer. To support this goal the
Company strives for a working climate where energy, passion
and respect for the individual are the guiding principles. An
intragroup attitude survey is carried out every year and the
number of satisfied employees is rising steadily. Every
employee must attend a career development meeting once a
year. For more information about employees see Note 32.
Income and profit
Consolidated income for 2014 was MSEK 33,563 (2013:
30,240), including profit on the sale of vessels totalling MSEK
0 (2013: 25) and property sales totalling MSEK 212 (2013: 51).
Pre-tax profit for the year was MSEK 2,799 (2013: 2,148) and
the net profit was MSEK 2,391 (2013: 1,910).
Financing and liquidity
As at 31 December 2014, cash and cash equivalents and current investments totalled MSEK 4,754 (2013: 3,747), of which
MSEK 3,778 (2013: 2,401) was available. Together with
non-current investments and available credit facilities, the total
payment capacity as at 31 December 2014 was SEK 18.6 billion (2013: 12.2).
In 2012, our credit facility of MUSD 1,000 was refinanced
with the term now running through to 2018. In conjunction
with our activities on the capital market during the spring, we
reduced the credit framework from MUSD 1,000 to MUSD
600. Of the credit facility of MUSD 600, MUSD 185 (2013:
625) was utilised as at 31 December 2014. Of this amount,
MUSD 5 (2013: 6) was blocked for guarantee purposes. In
2010, Stena entered into a new credit facility of MSEK 6,660,
guaranteed by the Swedish Export Credits Guarantee Board.
As at 31 December 2014, MSEK 2,584 (2013: 6,436) of the
facility was utilised. Loan repayments during the year
amounted to MSEK 8,535 (2013: 4,946).
6
STENA AB 2014
A bond loan of MUSD 600 was issued in January 2014. The
aim of the transaction was to extend our amortisation profile
and repay the outstanding amount under an existing credit
facility.
In February 2014, further bond loans of MUSD 350 and
MUSD 650 were issued within a Term Loan B, which is a loan
with a low amortisation rate. The units Stena DrillMAX and
Stena Carron have been furnished as collateral for both the
bond and the loan. The aim of this transaction was to extend
the existing amortisation profile and free up further liquidity.
Consolidated assets as at 31 December 2014 totalled MSEK
125,817 compared to MSEK 108,212 as at 31 December 2013.
Investments in tangible and intangible assets during the year
totalled MSEK 5,855 (2013: 7,169). The consolidated debt/
equity ratio, defined as net interest-bearing liabilities in relation to net interest-bearing liabilities, equity and deferred tax
liabilities, was 54% (2013: 55%) as at 31 December 2014.
According to the Consolidated Balance Sheets as at 31
December 2014, retained earnings amounted to MSEK 37,532,
of which MSEK 2,401 comprised net profit for the year.
Parent Company
Parent Company net income totalled MSEK 136 (2013: 136)
and the pre-tax profit was MSEK 934 (2013: 33), of which
dividends from subsidiaries totalled MSEK 1,165 (2013: 0).
The Board of Directors of Stena AB proposes that MSEK 225
(2013: 200) be paid as a dividend to the shareholders and that
MSEK 19 (2013: 10) be transferred as a donation to the Sten A
Olsson Foundation for Research and Culture and other worthy
causes in accordance with Section 17, sub-section 5 of the
Companies Act, whereupon the remaining profit will be carried forward.
For details of the profit, liquidity and financial position in
general for the Group and the Parent Company, reference can
be made to the following Income Statements, Balance Sheets,
Cash Flow Statements and notes thereto.
STENA AB 2014
7
GROUP
CONSOLIDATED
INCOME STATEMENTS
Years ended 31 December
Note
2013
MSEK
2014
MSEK
2014
MUSD1)
11,164
12,196
1,563
7,146
8,425
1,080
390
Revenues
Ferry operations
Drilling
Shipping
2,568
3,041
Investment properties
2,564
2,566
329
New Businesses – Adactum
6,453
6,696
858
Other
Total revenues
Net gain on sales of assets
4
Total income
65
8
32,989
4,229
76
212
27
76
212
27
12
224
362
46
3
30,240
33,563
4,302
Total other income
Net valuation on investment properties
45
29,940
Direct operating expenses
Ferry operations
(8,520)
(9,075)
(1,163)
Drilling
(3,036)
(3,496)
(448)
Shipping
(1,503)
(1,553)
(199)
(847)
(835)
(107)
(4,338)
(4,538)
(582)
Other
Total direct operating expenses
Gross profit
Selling expenses
Administrative expenses
Depreciation and amortisation
Income from operations
Share of associated companies´ results
11,988
14,058
1,802
(1,167)
(1,321)
(169)
(2,880)
(369)
3
(4,136)
(4,992)
(640)
3, 32
3,887
4,865
624
6
(51)
(5)
(1)
60
54
7
444
84
11
Interest income
Interest expense
Foreign exchange gain/loss
Other financial income/expense
7
Income before taxes
Income taxes
(1)
(2,500)
(2,798)
Gain (loss) on sale of securities
Profit for the year
(8)
(19,505)
5
Dividends received
Finance net
(8)
(18,252)
8
489
475
61
(2,386)
(2,523)
(323)
(41)
155
20
(254)
(306)
(40)
(1,739)
(2,066)
(265)
2,148
2,799
359
(238)
(408)
(53)
1,910
2,391
306
1,914
2,401
307
(4)
(10)
(1)
1,910
2,391
306
Earnings attributable to:
Equity holders of the Parent Company
Non-controlling interests
Net income
1) U
naudited, see Note 1
8
STENA AB 2014
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
Profit for the year
2013
MSEK
2014
MSEK
1,910
2,391
2014
MUSD1)
306
Other comprehensive income
Items that may subsequently be reclassified to profit or loss:
This year’s change in fair value reserve, net of tax
366
(119)
(15)
This year’s change in net investment hedge, net of tax
722
(1,575)
(202)
Change in translation reserve
414
3,198
410
Share of other comprehensive income from associates
(59)
15
2
443
(98)
(13)
13
116
15
Other comprehensive income for the year
1,899
1,537
197
Total comprehensive income for the year
3,809
3,928
503
Owners of the company
3,813
3,931
504
Non-controlling interest
(4)
(3)
3,809
3,928
Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations
This year’s change in revaluation reserve
Other comprehensive income attributable to:
Total comprehensive income for the year, net of tax
504
1) U
See also Note 20 and 21
STENA AB 2014
9
GROUP
CONSOLIDATED
BALANCE SHEETS
Note
2013
MSEK
2014
MSEK
2014
MUSD1)
Assets
Non-current assets
Intangible assets
9
Goodwill
2,372
2,459
Trademarks
704
708
91
Rights to routes
726
749
96
Other intangible assets
Total intangible assets
315
353
362
46
4,155
4,278
548
Tangible fixed assets
Vessels
10
40,956
46,141
5,915
Construction in progress
10
2,450
3,944
506
Equipment
10
3,930
4,270
547
Buildings and land
10
962
1,111
142
Ports
11
3,261
3,689
473
51,559
59,155
7,583
12
27,831
29,367
3,764
Total tangible fixed assets
Financial fixed assets
Investments reported according to the equity method
6
1,473
1,434
184
13
4,311
8,112
1,040
Marketable securities
14
4,243
4,847
621
Surplus in pension plans
22
160
163
21
15, 21
3,205
5,222
669
Total financial fixed assets
13,392
19,778
2,535
Total non-current assets
96,937
112,578
14,431
Investment included in SPEs
Other non-current assets
Current assets
Inventories
16
716
846
108
Trade debtors
17
2,849
2,843
364
Other current receivables
17
1,793
2,431
312
Prepaid expenses and accrued income
17
2,170
2,365
303
Short-term investments
18
1,694
1,248
160
Cash and cash equivalents
19
2,053
3,506
449
11,275
13,239
1,697
3
108,212
125,817
16,128
Total current assets
Total assets
1) Unaudited, see Note 1
10
STENA AB 2014
Note
2013
MSEK
2014
MSEK
2014
MUSD1)
Shareholders´ equity and liabilities
Equity attributable to shareholders of the company
20
Share capital
Reserves
Retained earnings
Net income
Equity attributable to shareholders of the company
Total equity
5
5
1
(390)
1,187
152
33,483
35,130
4,503
1,914
2,401
308
35,013
38,724
4,964
262
255
33
35,274
38,978
4,996
Non-current liabilities
Deferred income taxes
21
3,940
3,860
495
Pension liabilities
22
649
668
86
707
667
86
23
45,287
43,290
5,549
Other provisions
Long-term debt
Debt included in SPEs
13
3,944
7,540
967
Senior Notes
24
5,324
13,093
1,678
Capitalised lease obligations
25
642
553
71
Other non-current liabilities
26
722
3,946
506
61,215
73,617
9,437
384
Total non-current liabilities
Current liabilities
Short-term debt
23
4,616
2,998
Capitalised lease obligations
25
231
233
30
1,722
2,140
274
Trade accounts payable
Income tax payable
Other current liabilities
Accrued costs and prepaid income
27
Total current liabilities
Total equity and liabilities
243
155
20
1,655
3,250
417
3,256
4,446
570
11,723
13,222
1,695
108,212
125,817
16,128
Pledged assets and commitments
and contingent liabilities
Pledged assets
28
66,155
61,975
7,946
Commitments and contingent liabilities
28
3,301
2,432
312
1) U
STENA AB 2014
11
GROUP
CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to the owners of the parent company
MSEK
Closing balance at 31 December 2012
Share
Capital
5
Effects of changes in accounting principles2)
Balance at 1 January 2013 (restated)
5
Retained
earnings
including
net income
Total
(2,884)
33,067
30,188
280
1,012
189
1,201
28
1,229
(1,872)
33,256
31,389
308
31,696
Reserves1)
366
366
366
Change in net investment hedge
722
722
722
Change in revaluation reserve
(20)
414
33
13
13
414
414
Change in associated companies
(59)
(59)
(59)
Remeasurement of post employment benefit obligation
443
443
443
1,482
Total comprehensive income
1,482
Dividend to the shareholders
417
1,899
1,914
1,914
(4)
1,910
2,331
3,813
(4)
3,809
(189)
(189)
Acquisition of non-controlling interests
Closing balance as of 31 December 2013
5
Change in fair value reserves
Change in net investment hedge
(390)
(42)
262
35,274
(119)
(119)
(1,575)
(1,575)
80
3,191
Change in associated companies
1,577
Net income
Total comprehensive income
35,013
(189)
(42)
(119)
Change in revaluation reserve
35,398
1,899
(1,575)
Remeasurement of post employment benefit obligation
1,577
Dividend to the shareholders
36
116
3,191
116
7
3,198
15
15
15
(98)
(98)
(98)
(47)
1,530
7
2,401
2,401
(10)
2,391
2,354
3,931
(3)
3,928
1,537
(200)
(200)
(200)
Dividend to foundation
(10)
(10)
(10)
Dividend to the Swedish Sea Rescue Society
(10)
(10)
Acquisition of non-controlling interests
Closing balance at 31 December 2014
5
1) See Note 20
2) Effects of changes in valuation of ports, from cost method to revaluation method
STENA AB 2014
30,467
Change in fair value reserves
Net income
12
Non- Total sharecontrolling
holders’
interests
equity
1,187
37,532
38,724
(10)
(3)
(3)
255
38,978
CONSOLIDATED STATEMENTS
OF CASH FLOWS
Note
2013
MSEK
2014
MSEK
2014
MUSD1)
1,910
2,391
306
Net cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities:
4,136
4,992
640
Net valuation of investment properties
(224)
(362)
(46)
Share of associated companies´ results
51
5
1
Dividend from associated companies
23
25
3
(76)
(212)
(27)
Gain on sale of assets
3
4
Loss/gains on securities, net
Unrealised foreign exchange losses/gains
8
(444)
(84)
(11)
482
(378)
(48)
(49)
(41)
(5)
Other non cash items
165
652
84
Provision for pensions
(109)
(120)
(15)
75
70
9
5,940
6,938
891
81
Net cash flows from trading securities
Cash flow from operations before changes in working capital
Changes in working capital
Account receivables and other receivables
Inventories
Income tax payable
Net cash provided by operating activities
(68)
633
(125)
43
6
6
(115)
(15)
(154)
257
33
350
1,657
212
24
(17)
186
(915)
(1)
5,017
9,598
1,232
(147)
(156)
(20)
534
734
94
(7,022)
(5,696)
(731)
Net cash flows from investing activities
Capital expenditure of intangible assets
Cash proceeds from sale of tangible fixed assets
4
Capital expenditure on tangible fixed assets
Purchase of subsidiary, net of cash acquired
29
(13)
(27)
(3)
7,505
5,375
689
(5,084)
(8,059)
(1,034)
(392)
(658)
(84)
Decrease of noncurrent assets
12
168
22
Other investing activities
24
6
1
(4,583)
(8,313)
(1,066)
Proceeds from sale of securities
Purchase of securities
Increase of noncurrent assets
Net cash used in investing activities
Net cash flows from financing activities
Proceeds from issuance of debt
3,676
15,668
2,007
(4,946)
(8,535)
(1,094)
Net change in borrowings on line-of-credit agreements
1,228
(6,621)
(849)
Principal payments on capitalised lease obligations
(238)
(249)
(32)
484
510
65
(189)
(220)
(28)
(34)
(518)
(66)
(19)
35
3
Principal payments on debt
Net change in restricted cash accounts
Dividends paid
Other financing activities
29
Net cash provided by/used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
57
133
17
472
1,453
186
Cash and cash equivalents at beginning of year
19
1,581
2,053
263
Cash and cash equivalents at end of year
19
2,053
3,506
449
1) Unaudited, see Note 1
STENA AB 2014
13
GROUP
NOTES
Amounts are shown in MSEK unless otherwise stated.
1. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
Basis of preparation
– IFRS 11, “Joint arrangements” focuses on the rights and obligations
The consolidated financial statements have been prepared in accord-
of the parties to the arrangement rather than its legal form. There are
ance with International Financial Reporting Standards (IFRS) as adopted
two types of joint arrangements: joint operations and joint ventures.
by the EU. In addition RFR 1 Supplementary Rules for Groups, has been
Joint operations arise where the investors have rights to the assets and
applied, issued by the Swedish Financial Reporting Board.
obligations for the liabilities of an arrangement. A joint operator
In accordance with IAS 1, the companies of the Stena Group apply
accounts for its share of the assets, liabilities, revenue and expenses.
uniform accounting principles, irrespective of local legislation. The
Joint ventures arise where the investors have rights to the net assets
principles below have been applied consistently for all the years cov-
of the arrangement; joint ventures are accounted for under the equity
ered by this Financial Report. IAS 33, Earnings Per Share, is not applied,
method.
since Stena AB is not a listed company.
– IFRS 12, “Disclosures of interests in other entities” includes the
The Parent Company’s financial statements have been prepared
disclosure requirements for all forms of interests in other entities,
according to the same accounting principles applied for the Group
including joint arrangements, associates, structured entities and other
except for the exceptions described in the section “Parent Company’s
off balance sheet vehicles.
accounting principles”.
The Financial Report and Consolidated Financial Statements are
Basis of consolidation
approved for issue by the Board of Directors on 17 April 2015. The
The consolidated financial statements have been prepared in accord-
balance sheets and income statements were approved by the Annual
ance with the principles set forth in IFRS 10, consolidated and sepa-
General Meeting on 17 April 2015.
rate financial statements and include Stena AB and all subsidiaries,
In conjunction with the preparation of these financial statements,
defined as companies in which Stena AB, directly or indirectly, owns
senior management has made estimates and assumptions which affect
shares representing more than 50% of the voting rights or, in any
the carrying amounts of assets and liabilities, as well as contingent lia-
other way, has a controlling influence.
bilities at the date of the financial statements and recognised revenues
and costs. The actual future outcome of specific transactions may
As regards companies acquired or divested during the year, the
following applies:
differ from the outcome estimated at the date of preparation of this
•C
ompanies acquired during the year have been included in the
financial statements. Differences of this type will impact the outcome
consolidated income statement as of the date upon which control
of financial statements in forthcoming accounting periods. Areas
was gained.
involving a high degree of assessment, which are complex or in which
•C
ompanies divested during the year are included in the consolidated
the assumptions and estimations are of material significance to the
income statement until the date upon which Stena’s control ceased.
consolidated financial statements are stated in Note 2.
Assets and liabilities are accounted for at historical acquisition
The Group’s consolidated financial statements include the financial
values, except certain financial assets and liabilities and investment
statements for the Parent Company and its directly or indirectly owned
properties that are valued at fair value and ports that are recognised
subsidiaries after:
according to revaluation model. Financial assets and liabilities valued at
• elimination of intercompany transactions and
fair value are derivative instruments, financial assets classified as finan-
• amortisation of acquired surplus values
cial assets valued at fair value through the income statement or finan-
Equity in the Group includes equity in the Parent Company and the
cial assets held for sale.
portion of equity in the subsidiaries arising after the acquisition.
Solely for the convenience of the reader, the 2014 financial state-
Non-controlling interest is recognised in equity as a separate cate-
ments have been translated from Swedish kronor (SEK) into United
gory. Non-controlling interest share of profit/loss for the year is speci-
States dollars (USD) using the 31 December 2014 rate, USD 1.00 = SEK
fied following the net profit/loss for the year in the income statement.
7,8011.
Business combinations and goodwill
New or amended accounting standards 2014
Stena applies IFRS 3 (revised 2009) Business Combinations.
During the year 2014, no new or amended IFRS standards have had
Acquisitions before 1 January 2010, are not restated.
any particular impact on the group accounting, except for below:
purchase method. This method entails that the assets, liabilities and
ciples by identifying the concept of control as the determining factor in
contingent liabilities owned by the acquiring company at acquisition
whether an entity should be included within the consolidated financial
date are valued to determine their group acquisition value. The valua-
statements of the parent company. The standard provides additional
tion method requires that estimates have to be made. The valuation of
guidance to assist in the determination of control where this is difficult
acquired land, buildings and equipment is carried out either by an
to assess.
14
STENA AB 2014
All business combinations are accounted for in accordance with the
– IFRS 10, ”Consolidated financial statements” builds on existing prin-
external party or by an internal party on the basis of available market
rative arrangements and established that the majority are joint ven-
information. The reporting of financial assets and liabilities, as well as
tures. Three joint operations have been identified but are not assessed
inventories, is based on available market information. The fair value of
to be of a material nature. Joint operations are reported according to
significant intangible fixed assets is determined either with the help of
the proportional method.
independent valuation experts or internally, through the use of generally
Holdings in associated companies and joint ventures are reported
accepted valuing methods, which are usually based on future cash flows.
according to the equity method. The method means that the invest-
Acquisition of investment properties and vessels, in companies with
only assets, are accounted for as an asset deal.
ment is reported initially at its acquisition value. The carrying amount is
subsequently increased or reduced to reflect the owner company’s
In the event that the acquisition cost exceeds the market value of
share of the associated company’s/joint venture company’s profit or
the identified assets, liabilities and contingent liabilities, the difference
loss following the acquisition. In the Consolidated Balance Sheet, the
is accounted for as goodwill.
holdings are reported as “Investments reported according to the
In the event that the fair value of the acquired net assets exceeds
equity method”. In the Consolidated Income Statement, associated
the acquisition cost, the acquirer shall identify and value the acquired
companies and joint venture companies are divided according to
assets again. Any remaining surplus in a revaluation shall immediately
strategic holdings and other holdings, where strategic holdings are
be taken up as income. The acquisition analysis (the method utilised for
reported as “Share of associated companies result” within net financial
the allocation of acquisition cost to acquired identified net assets and
income/expense and other holdings are reported within each business
goodwill), shall, in accordance with IFRS, be completed within twelve
area under operating profit. Dividends received are set off against the
months of acquisition date. Once the acquisition analysis has been
carrying value of each participation. The Group makes an assessment
reviewed and approved by management, goodwill is allocated to cash
at the end of each reporting period of whether there is objective evi-
generating units and impairment testing is carried out at least once per
dence of a need for impairment of the investments. If that is the case,
year from the date upon which this allocation is completed. If the
the Group calculates the impairment amount as the difference
acquisition is achieved in stages, the goodwill value is decided at the
between the associated company’s recoverable value and the carrying
time when the control has been transferred. Previous shares are valued
amount and reports the amount under “Profit from participations in
to fair value and the change in value is accounted for in the Income
associated companies” or under operating profit depending on
statement. Goodwill is not amortised.
Transaction costs, exempt from transaction costs which is assignable
whether the holding is classified as a strategic holding or other
holding.
to equity- or liability instruments, are reported as costs in the Income
As regards holdings in joint operations, the assets, liabilities, reve-
Statements. For acquisitions before 1 January, 2010 transaction costs
nue and costs that are associated with these holdings in the business
have been capitalised. Conditional purchase-sum is reported according
are reported according to the accounting principles applicable to these
to fair-value at the date of acquisition. If the conditional purchase-sum
specific assets, liabilities, revenues and costs.
is classified as equity-instrument, no revaluation is carried out and the
adjustment is reported in equity. For other conditional purchase-sum,
Special purposed entities (SPE)
these are revalued each quarter and the variation is reported in the
Special purposed entities (SPE) are consolidated in the group accounts
Income Statement.
according to IFRS 10 and they are consolidated, when the group has a
significant economic impact of the SPE. Definition of significant eco-
Participations in associated companies, joint ventures
nomic impact is if the group stands behind the majority of the risks
and other collaborative arrangements
which are related to the SPE and its assets or if it has the right to keep
IFRS 12 requires augmented supplementary disclosures regarding sub-
the majority of the rewards in the SPE.
sidiaries, joint ventures, associated companies and non-consolidated
structured companies in which the company is involved. The extent of
Acquisition with non-controlling interest
the disclosures in Note 6 in the Stena Financial Report for 2014 has
Acquisition with non controlling interest arise when less than 100% is
increased to a certain extent as a result of IFRS 12.
acquired. This kind of acquisition is reported as a proportion of the
Associated companies are companies in which the Group has a sig-
acquired net assets. The acquisition is reported as a transaction within
nificant but not controlling influence, which as a rule applies to share-
equity i.e. between the owner of the parent company and the non
holdings equivalent to between 20% and 50% of the votes, or which
controlling interest. Therefore no goodwill arise in this kind of transac-
the Group in some other way exercises a significant influence.
tions. The change in non-controlling interest is based on the propor-
Collaborative arrangements are companies in which the Group,
tional share of the net assets.
through collaboration agreements with one or more parties, has a joint
controlling influence with external parties (the arrangement’s relevant
Translation of foreign operations
activities). Holdings in a collaboration arrangement are classified either
The functional currency of the parent company, as well as the report-
as a joint operation or a joint venture depending on the contractual
ing currency, and the reporting currency of the Group is Swedish krona
rights and obligations of each investor. Stena has assessed its collabo-
(SEK). All foreign subsidiaries report in their functional currencies, the
STENA AB 2014
15
GROUP
CONT. NOTE 1
currency used in the primary economic environment of the companies.
met or have fallen due. The Group bases its judgements on historical
In consolidation, all balance sheet items have been translated into SEK
outcome, thereby considering the type of client, type of transaction,
at the closing rate of exchange. Profit/loss items have been translated
and special circumstances in each individual case.
using average exchange rates.
The Group’s shipping and drilling revenues are derived from charter
contracts. Revenue is recognised evenly within the charter period.
Transactions in foreign currency
Foreign currency transactions are converted to the functional currency
Provisions are made in advance for any ongoing loss contracts.
Revenues from the Group’s ferry operations consist of ticket sales,
at the exchange rate prevailing on the transaction day. The functional
onboard sales, and freight revenues and are recognised in the period
currency is the currency of the primary economic environment in which
in which services are rendered.
the company generates and expends cash. Monetary assets and liabili-
Rental income from the Company’s investment properties opera-
ties in foreign currencies are converted to the functional currency at the
tions is derived from leases and is recognised on a straight line basis
exchange rate prevailing on the closing date. Exchange differences
over the life of the leases.
which arise are reported in the Income Statement. Non monetary assets
Sales of goods are recognised at the date upon which the Group
and liabilities which are reported at historical cost, are revaluated at
company sells a product to the customer in accordance with the terms
transaction date. Non monetary assets and liabilities which are reported
of sale. Sales are usually paid for in cash or by credit card.
at fair value are revalued to the functional currency at the exchange rate
ruling at the time for revaluation at fair value.
Contract assignments in progress from operations within the
Adactum Group are recognised according to the percentage of completion method on all of the assignments in which outcome can be
Segment reporting
calculated in a satisfactory manner. Revenues and costs are reported
Operating income is reported in such a manner as to correspond with
in the income statement in relation to the assignment’s degree of
the internal reporting submitted to the Chief operating decision-maker.
completion. The degree of completion is determined on the basis of
The Chief operating decision-maker is the function responsible for the
assignment costs incurred in relation to the estimated assignment
allocation of resources and the assessment of the operating segments’
costs for the entire assignment. Anticipated losses are expensed
results. In the Group, this function has been identified as Stena AB’s
immediately.
Board of Directors, which make strategic decisions.
The Group’s segments, its business areas, have implemented systems
and procedures to support internal control and reporting. This forms
Customer Loyalty Programmes, addresses the accounting by Stena
Line and Blomsterlandet that operate customer loyalty programmes
under which the customer can redeem credits for awards such as free
the basis of the identification of primary risks and the varying returns
or d
iscounted goods or services. The fair value of the total considera-
that exist in the business, and is based on the various business models
tion received in the initial sales transaction is allocated between the
for the Group’s end clients. The segments are responsible for operating
award credits and the sale of the goods or services. The revenue
profit/loss, EBITDA (operating income before amortisation) and for
related to the award credits granted is recognised in the income
those assets utilised in their operations, whilst net financial income,
statement when the risk of a claim being made expires.
taxes and equity are not reported per segment. Operating profit/loss
Sales of vessels and investment properties are recognised in other
and assets for the segment are consolidated in accordance with the
income. Revenue recognition takes place when all material benefits
same principles as the rest of the Group as a whole. Sales between
and risks have been transferred to the buyer.
segments take place on market conditions and at market prices. The
Stena Group’s business areas and, thereby, its segments are:
• Ferry operations
• Drilling operations
Interest income is recognised as income in the finance net distributed over the term with application of the effective interest method.
Dividend income is recognised when the right to payment is
received and reported in the financial net.
• Shipping operations
• Property operations
• New businesses – Adactum
Tangible fixed assets are recognised in the balance sheet when, on
the basis of available information, it is likely that the future economic
Revenue recognition
benefit associated with the holding accrues to the Group and the
Revenue includes the fair value of amounts received or to be received
acquisition cost of the asset can be reliably calculated.
regarding services and goods sold in the Group’s operating activities.
Ports are carried at a revalued amount according to the revaluation
Revenue is reported excluding value added tax, returns and discounts
model in IAS 16, being its fair value at the date of revaluation less subse-
and after elimination of internal Group sales.
quent depreciation and impairment. If a revaluation result in an increase
The Group reports revenue when the amount can be measured in a
in value, it is credited to other comprehensive income and accumulated
reliable way, it is probable that future economic benefits will be gener-
in equity under the heading “revaluation surplus”. A decrease arising as
ated to the Company and specific criteria have been fulfilled for each
a result of a revaluation are recognised as an expense.
of the Group’s operations. Revenue amounts are not considered to be
reliably measurable until all commitments regarding sales have been
16
STENA AB 2014
Vessels, equipment and buildings used in business operations are
recorded at acquisition cost less accumulated depreciation and any
impairment charges. Acquisition expenditure is capitalised upon
transferred between well informed parties that are independent of
acquisition. Repairs and maintenance costs for tangible fixed assets
each other and that have an interest in the transaction being carried
are charged to the income statement for the year.
out. Changes in fair value are reported in the income statement, with
Dry-docking costs for vessels are capitalised and amortised over a
an impact on changes in value of properties.
The term investment properties, which mainly includes residential
period of two to five years.
For vessels, the Company uses appraisals carried out by independent
and office buildings, also includes land and buildings, land improve-
vessel brokers for impairment assessment. If a review indicates that the
ments and permanent equipment, service facilities etc in the building
net book value of an asset exceeds its recoverable amount, discounted
or at the site.
cash flows based upon estimated capital expenses and future expected
Sales and purchases of properties are reported when the risks and
earnings are utilised. Assets having a direct joint income, e.g. a ferry
rewards associated with ownership are transferred to the buyer from the
route, the smallest cash generating unit is used. If a write-down
seller, which normally takes place on the day of taking possession as
requirement arises on balance sheet date, the recoverable amount of
long as this does not conflict with the conditions of the sales contract.
the asset is estimated and the asset is impaired to this value. Impair-
Profit or loss arising upon the sale or disposal of investment proper-
ment is reversed if any change is made to the calculations used to
ties is composed of the difference between the net proceeds from sale
determine recoverable amount.
and the most recently determined valuation (carrying amount based on
Construction in progress includes advance payments, as well as
the most recently determined translation to fair value). Income arising
other direct and indirect project costs, including financial expenses,
from sales or disposals is reported in the income statement as net gain
which are capitalised on the basis of the actual borrowing cost.
on sale of assets.
Buildings used in business operations is split into buildings and land
In the event that Stena utilises a portion of a property for its own
and refer to properties used by the Company in its own operations.
administration, such a property will only be considered to be an invest-
Tangible fixed assets are depreciated according to plan, using the
ment property if an insignificant portion is used for administrative
straight-line method. The residual values and useful lives of the assets
means. In any other case, the property will be classified as a building
are tested on every balance sheet date and adjusted when needed.
used in business operations, and be accounted for in accordance with
No depreciation is carried out regarding land.
IAS 16 – Property, Plant & Equipment.
The residual values are estimated to zero. All assets are divided to
Additional expenses are added to the carrying amount only when it
is likely that future economic benefits associated with the asset will
components.
Depreciation takes place from the date upon which the asset is
accrue to the Company and when acquisition cost can be reliably calculated. Other expenses are recognised as costs in the period in which
ready for use and over the following periods:
they arise. One decisive factor for the assessment of when an additional
Vessels
expense may be added to the carrying amount is whether this expense
Drilling rigs
20 years
refers to the replacement of identified components, or parts of these, in
Drilling rig vessels
20 years
which case such expenses are capitalised. Expenses are also added to
Crude oil tankers
20 years
carrying amount in cases where new components are created.
RoRo vessels
20 years
RoPax vessels
20 years
value) utilises an internal valuation model which has been quality
Superferries
20 years
assured through the reconciliation of assumptions with external
LNG carriers
20 years
property values, as well as through external valuation. The internal
HSS vessels
10–20 years
Port terminals
Windmills
Equipment
valuation is determined on an earnings basis, which means that each
individual property’s net rental income is divided by the required return
Other tangible fixed assets
Buildings
The valuation of investment properties at fair value (assessed market
by market yield for the property in question. Assumptions have been
50 years
20–50 years
made in the calculation of net rental income regarding operating and
maintenance expenses, as well as vacancies. These assumptions are
20 years
based on market assumptions of those cash flows. However, historical
3–10 years
outcome, budget and normalised costs have been a part of these considerations. Different required returns have been utilised for different
Investment property
markets and types of properties.
Investment properties are reported at fair value in accordance with the
fair value model in IAS 40. Investment properties, that is properties
Intangible assets
held in order to generate rental income or increase in value or a combi-
Goodwill
nation of these, are valued continuously with the fair value model (esti-
Goodwill is comprised of the amount by which the acquisition cost
mated market value). These properties are initially valued at acquisition
exceeds the fair value of the Group’s portion of the acquired subsidi-
cost. Fair value is based on the estimated market value on balance
ary’s identifiable net assets at acquisition date. Goodwill on the
sheet date, which means the value at which a property could be
acquisition of subsidiaries is recognised as an intangible asset.
STENA AB 2014
17
GROUP
CONT. NOTE 1
G oodwill is tested annually for impairment and is recognised at
Borrowing expences
acquisition cost less accumulated impairment losses.
Borrowing expenses, for completing of so called qualifying assets, are
Impairment of goodwill is not reversed. Profit or loss on the
capitalised on the acquisition value of the qualifying asset. A qualified
disposal of a unit includes the remaining carrying amount of the
asset is an asset which takes a certain amount of time to complete.
goodwill referring to the unit divested.
Borrowing expenses on loans specified for the qualifying asset are
Goodwill is allocated to cash generating units during impairment
capitalised on the asset.
testing. This allocation refers to those cash generating units, determined in accordance with the Group’s operating segments, which are
Accounting for subsidies
expected to benefit by the business combination in which the good-
Any subsidies (government grants) received in conjunction with new
will item arose.
acquisitions of vessels, properties or port installations are reported
as a decrease of the acquisition cost; subsidies relating to operating
Trademarks
activities reduce the corresponding costs. Recognition takes place
From 2014 Trademarks are assessed to have indefinite useful life and
when the subsidy can be reliably calculated. For Swedish-flagged
are recorded to purchase value less previous amortisations. Trademarks
vessels employed in international shipping activities, the company has
are annually tested for impairment.
received subsidies equal to all security costs and income taxes payable
by the employers on behalf of employees who work on board such
IT investments
vessels. The amounts received have reduced personnel costs.
Acquired software is capitalised on the basis of acquisition and implementation costs. These costs are amortised over the asset’s useful life,
Fixed assets held for sale
which is judged to be between three and five years, in accordance with
Fixed assets are classified as assets held for sale when their carrying
the straight line method. Useful life is reviewed on a yearly basis.
amounts will be recovered through a sales transaction and a sale is
considered highly likely. They are recognised at the lowest of book
Distribution agreements
value and fair value less selling costs if their carrying amount will be
Distribution agreements are reported at acquisition cost, less accumu-
recovered primarily through a sales transaction and not through
lated amortisation. Amortisation takes place according to the straight
continuous usage.
line method over the asset’s estimated useful life of 5 years. Useful life
is reviewed on a yearly basis and has been changed during 2014 from
Financial assets and liabilities
10 to 5 years.
General
A financial instrument is any form of agreement which giving rise to a
Rights to routes
financial asset in a company and a financial liability or equity instru-
Rights to routes is capitalised on the basis of acquisition and amortised
ment in another company. Financial assets in the consolidated balance
over the assets useful life, which is judged to be 20 years, in accordance
sheet consist of cash and cash equivalents, trade debtors, other finan-
with the straight line method. Useful life is reviewed on a yearly basis.
cial assets, shares and derivative assets. Financial liabilities are materialised through requirements regarding the repayments of cash or of
Maintenance of intangible assets
other financial assets. In the consolidated balance sheet, financial
Expenses for maintenance of intangible assets are expensed as they
liabilities consist of trade accounts payable, loans, financial leasing
arise.
liabilities, bonds and derivative liabilities.
Impairment of non-financial assets
Accounting
Assets with indeterminable useful lives, goodwill and trademarks, are
Financial assets and liabilities are reported in the balance sheet when
not amortised; rather they are reviewed on a yearly basis with consid-
the Group becomes party to the instrument’s contractual terms.
eration of any impairment requirements. Assets that are amortised or
Financial assets and liabilities are reported on settlement date, with the
depreciated are tested with consideration of impairment whenever
exception of derivatives, which are reported on trade date. Financial
events or changes in circumstances indicate that the carrying amount
instruments are initially reported at fair value, which usually corre-
may not be recoverable. Impairment is carried out in the amount by
sponds to acquisition cost on acquisition date. Transaction costs are
which the asset’s carrying amount exceeds its recoverable amount. The
included in the acquisition cost of all financial instruments not valued at
recoverable amount is the higher of the asset’s fair value, less selling
fair value in the income statement. Netting of financial liabilities and
expenses, and its value in use. In the assessment of impairment
assets only takes place when there is a contractual possibility and when
requirements, assets are grouped on the lowest level at which there
the intention is to net the gross amounts of the liabilities or assets.
exist separate identifiable cash flows (cash generating units).
For non-financial assets other than goodwill and trademarks that
18
STENA AB 2014
Financial expenses
have previously been impaired, an assessment is carried out on each
Financial expenses are reported in the period in which they arise.
balance sheet date to determine whether a reversal should be made.
Financial expenses regarding new construction projects of vessels and
properties are capitalised as a portion of the acquisition cost. Expenses
Assets held to maturity
for the financing of long-term loans and credits are deferred and
Held-to-maturity financial assets are non-derivative financial assets
amortised over the expected term of the financing.
with fixed or determinable payments and fixed maturities that the
Group’s management has the positive intention and ability to hold to
Derecognition
maturity. If the Group were to sell other than an insignificant amount
Financial assets are derecognised in the balance sheet when the agreed
of held-to-maturity financial assets, the whole category would be
rights to cash flows have ceased or been transferred and when essen-
tainted and reclassified as available for sale. Held-to-maturity assets
tially all the risks and advantages associated with the ownership of the
are measured at amortised cost and interest revenue is recorded in
financial asset have been transferred. Financial liabilities are derecog-
the income statement using the effective interest rate method. Held to
nised from the balance sheet when they have been extinguished.
maturity financial assets are included in non-current assets, except for
Realised result is defined as proceeds from sales less the net book
those with maturities less than 12 months from the balance sheet date,
value as of the previous year end.
which are classified as current assets.
Classification of financial assets
balance sheet.
Assets in this category are classified as Investments in SPEs in the
Financial assets in the Group are divided into the following categories:
• Financial assets at fair value through the income statement
Loan receivables and trade debtors
– trading
Loans and receivables are financial assets that are not designated as
– assets classified as financial assets at the acquisition date at fair value
derivatives, that have fixed or fixable payments and that are not listed
through the income statement
on an active market. Receivables are reported under current assets,
• Financial assets held for hedging purposes
with the exception of receivables with a maturity date later than 12
• Financial assets held to maturity
months after balance sheet date which are classified as financial fixed
• Available-for-sale financial assets
assets. Loans receivables and trade debtors are listed in the balance
• Loans receivable and trade debtors
sheet under other receivables and trade debtors. Assets in this category are valued at amortised cost, with allowances for bad debt losses
The basis for classification is formed of the aim of the acquisition of
and loan losses, when applicable.
the financial instrument. The classification is carried out by senior
management on initial recognition date.
Available-for-sale financial assets
Investments in certain shares (with the exception of participations in
Financial assets at fair value through the income statement
subsidiaries and associated companies) and bonds are categorised as
Financial assets belonging to this category are valued and continuously
available-for-sale financial assets. Period changes in fair value, with the
reported at fair value through the income statement.
exception of impairment charges, are reported in other comprehensive
income for these instruments. When these financial instruments are
The category is divided into two subcategories:
sold, the accumulated gains or losses are reclassified through other
1) trading and 2) assets classified as financial assets at fair value
comprehensive income and are recognised in the income statement.
through the income statement at acquisition date. Trading consists of
These assets are classified as marketable securities in the balance sheet
financial assets acquired with the primary intention of being sold in the
and changes in market value are reported in fair value reserve in other
short term and those derivative instruments to which hedge account-
comprehensive income.
ing is not applied. The trading shares are classified as short-term investments in the balance sheet and changes in fair value are reported in
Assets in this category are recognised as other long-term securities,
other long-term assets and investments in securities.
the income statement under gains (loss) on securities.
Fair value option is applied, because the investments are managed
Receivables and liabilities in foreign currency
and their performance, are evaluated on a fair value basis in line with
Transactions in foreign currency are translated in accordance with
the Groups investment policy. These assets are classified as Marketa-
current exchange rates per transaction date.
ble securities in the balance sheet and changes in fair value are
reported in the income statement under gains (loss) on securities.
Internally, the Group follows up and reports on these assets on the
Both in the individual Group companies and in the Group’s annual
accounts, receivables and liabilities in foreign currency are translated
at the closing rate of exchange. Related exchange rate differences on
basis of their fair values and, consequently, considers that this valua-
current payments are included in operating income, while differences in
tion and recognition in the income statement and balance sheet
financial receivables and liabilities are reported among financial items.
provides readers of the Financial Report with the most relevant infor-
All exchange rate differences affect net profit/loss for the year. An
mation. Financial assets, classified as financial assets at fair value
exception is formed by that portion of the difference consisting of an
through the income statement at acquisition date, are classified as
effective hedging of net investments, where recognition takes place
current assets if they are expected to be realised within 12 months of
directly against comprehensive income.
balance sheet date.
STENA AB 2014
19
GROUP
CONT. NOTE 1
Translation differences on non-monetary financial assets and liabili-
The early redemption of liabilities reduces the outstanding liabilities
ties, such as equities held at fair value through the income statement,
by a nominal principal loan amount. Any premiums or discounts are
are recognised in the income statement as part of the fair value gain or
taken up as income.
loss. Translation differences on non-monetary financial assets, such as
equities classified as available for sale, are included in the available-for-
Derivative financial instruments and hedge accounting
sale reserve in comprehensive income. The following currency exchange
The Group is hedging oil price risk and cash-flow interest rate risk and
rates have been applied in the Group’s annual accounts:
foreign exchange risk related to net assets in foreign operations as
well as in highly probable forecasted transactions in foreign currency.
The Group uses options and swaps to hedge oil price risk and interest
Average rates
2013
2014
Change in
%
USD
6.5140
6.8577
5
GBP
10.1863
11.2917
11
EUR
8.6494
9.0968
5
rate swaps to hedge interest rate risk and foreign currency forward
contracts to hedge foreign exchange risk.
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their
fair value. The method of recognising the resulting gain or loss
depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The group
Closing rates
2013
2014
Change in
%
USD
6.4279
7.8011
21
GBP
10.6529
12.1549
14
EUR
8.8567
9.4378
7
designates certain derivatives as either:
a) h
edges of a particular risk associated with a recognised asset or
liability or.
b) a highly probable forecast transaction (cash flow hedge) or.
c) h
edges of a net investment in a foreign operation (net investment
hedge).
Financial liabilities
Financial liabilities in the group are divided into the following
The Group documents at the inception of the transaction the relation-
categories:
ship between hedging instruments and hedged items, as well as its risk
• Financial liabilities at fair value through the income statement,
management objectives and strategy for undertaking various hedging
held for trading
• Other financial liabilities
transactions. The Group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether the derivatives that are
used in hedging transactions are highly effective in offsetting changes
The basis for classification is formed based on the purpose of the
in fair values or cash flows of hedged items. The effectiveness of a
acquisition of the financial instrument. The classification is carried out
hedge has to be in the range of 80%–125%.
by senior management on initial recognition date.
Currency swap agreements are valued at market rates, unrealised
exchange gains are recognised in the balance sheet as current receiva-
Other financial liabilities
Other financial liabilities in the balance sheet consist of senior notes,
bles, and unrealised exchange losses are presented as current liabilities.
The fair values of various derivative instruments used for hedging
other long-term interest bearing debt, other non-current liabilities,
purposes are disclosed in Note 31. Movements on the hedging reserve
short-term interest bearing debt, trade accounts payable, debt in SPEs
in shareholders comprehensive income are shown in the Consolidated
and other current liabilities.
Statements of Changes in Shareholders Equity. The full fair value of a
Financial liabilities are recognised initially at fair value, net of
transaction costs incurred. Financial liabilities are subsequently stated
hedging derivative is classified as a non-current asset or liability when
the remaining hedged item is more than 12 months.
at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income
Cash flow hedging
statement over the period of the liabilities using the effective interest
For the Stena Group’s hedges of oil price risk in bunker-oil (bunker
method.
hedges), the cash flow interest rate risk in floating rate debt- and for-
The liabilities in the balance sheet, long-term and short term debt,
transactions, cash flow hedge accounting is applied. The hedged item
after transactions costs and, subsequently, at amortised cost.
consists of a highly probable forecast consumption of bunker fuels,
Loan amounts are reported as liabilities in the balance sheet, where
liabilities with a term of over 12 months are reported as longterm and
all others as short-term.
20 STENA AB 2014
eign currency risk in highly probable forecasted purchase and/or sales
debt in SPEs and senior notes are initially reported at fair value, net
highly probable forecast cash flow in foreign currencies and the
floating interest rate cash outflows of issued debt instruments. The
Group is exposed to the price of bunker fuels for vessel operations and
Hedging of net investments
uses a fixed price contract, swaps and options to hedge its oil price
Hedging of net investments in foreign operations is reported in the
risk. Hedging contracts are regularly entered into, so as to match the
same manner as cash flow hedges. The gains or losses attributable to
underlying cost of delivery of bunker fuel. Hedging instruments (oil
the effective part of the hedging are reported through other compre-
options and futures in the case of bunker hedges and interest rate
hensive income and is cumulated in the translation reserve. Gains or
swaps in cash of interest rate hedges), forming an effective hedge, are
losses attributable to the ineffective portion of hedging are directly
measured at fair value with changes in fair value regards to the hedged
reported in the income statement as financial items.
risk reported through other comprehensive income and is cumulated in
Accumulated gains or losses are reclassified through other compre-
the hedge reserve until the hedged item affects the income statement,
hensive income and reported in the income statement when the
that is, when the purchase takes place or when the interest rate pay-
foreign operations, or portions of these operations, are sold.
ment is made. In conjunction with the purchase, when the accumulated fair value of the hedging instruments is removed from the hedg-
Fair value determination of financial instruments
ing reserve and is reclassified through other comprehensive income it
valued at fair value in the balance sheet
is, reported in item direct operating expenses in the income statement
(i) Financial instruments listed on an active market
as an adjustment of the cost of bunker fuel for the current period or as
(level 1 measurement)
part of interest rate expense in cash of interest rate hedges.
For financial instruments listed on an active market, fair value is deter-
Positive or negative fair values of the derivatives are accounted for
mined on the basis of the asset’s listed buying current bid-rate on bal-
as an other non-current asset or other non-current liability. The short-
ance sheet date, with no addition for any transaction costs (for example
term part of the hedged item is accounted for as other current receiva-
brokerage) on acquisition date. A financial instrument is considered to
bles or other current liabilities.
be listed on an active market if the listed prices are easily available on a
The accounting for cash flow hedges of interest rate risk and foreign
stock exchange, with a trader, broker, industry organisation, company
currency risk in highly probable forecasted transactions in foreign cur-
providing current price information or supervisory authority, and if
rency follows the same principles as the above described policy for the
these prices represent actual and regular market transactions carried
bunker hedges.
out under arm’s length conditions. Any future transaction costs from
Changes in fair value of the hedging instruments are accounted
for through other comprehensive income and are cumulated in the
disposals are not considered. The fair value of financial liabilities is
determined on the basis of the listed selling rate.
hedged reserve. The cumulative changes in fair values are reclassified
through other comprehensive income into the income statement in the
ii) Valuation techniques using observable market data
same period as the hedged items affects the income statement and is
presented in the same line item as the hedged item.
If the market for a financial instrument is not active, the Company
It is Group’s policy that duration and dates of maturity for financial
determines fair value by utilising a valuation technique. The valuation
instruments which are held and classified as hedge contracts for
techniques employed are based, as far as possible, on market informa-
interest – and FX exposure should correspond with the underlying
tion, with company specific information being used to the least extent
exposure’s dates of maturity.
possible. The Company calibrates valuation techniques at regular inter-
Results of operations from all types of financial derivative instru-
vals and tests their validity by comparing the outcome of these valua-
ments, with the exception of those contracts referring to financial
tion techniques with prices from observable current market transac-
trading, are reported as an adjustment of the revenue or costs for the
tions in the same instruments. The valuation models applied are
period and for those transactions the contracts are designated to
calibrated so that fair value on initial recognition date amounts to the
hedge.
When hedge accounting is terminated and the hedged item is
expected to occur, the hedge item is recognised in the income state-
transaction price, with changes in fair value subsequently being continuously reported on the basis of changes in the underlying market risk
parameters.
ment. Then the change in fair value is reclassified through other comprehensive income into the income statement.
If an underlying asset or liability is sold or redeemed, the pertaining
(iii) Valuation techniques using significant unobservable data
financial instruments are market valued and the result is reported as an
If there are no similar financial instruments on a quoted market and
adjustment of the market or redemption value of the underlying asset
no observable pricing information from the market, the valuation is
or liability.
based on estimated discounted cash flows. Fair value is determined by
hypothesising what a market price would be if there was a market i.e.
calculated fair value is a prediction instead of an observation.
STENA AB 2014
21
GROUP
CONT. NOTE 1
Offsetting of Financial Instruments
Deferred taxes
Financial assets and liabilities are accounted at gross amount in the
The Group uses the balance sheet method to calculate deferred
balance sheet. See Note 31 for information about financial instruments
taxes. The balance sheet method implies that deferred tax assets and
subject to offsetting, i e where there is a legal right to offset the
liabilities are valued according to the tax rates adopted or announced
accounted amount or is an intention to simultaneously realise the asset
on balance sheet date and which are expected to apply to the period
and liability.
in which the acquisition is executed or the liability settled. The tax
rates are applied to the existing differences between the accounting
Impairment of financial assets
or fiscal value of an asset or liability, as well as to loss carry forwards.
The Group makes an assessment on each balance sheet date regarding
These loss carry forwards can be used to reduce future taxable
whether there exists any objective evidence that an impairment
income. Deferred tax assets are reported to the extent that it is prob-
requirement has arisen for a financial asset or a group of financial
able that a sufficient taxable surplus will exist to allow for accounting
assets. In regards of shares classified as available-for-sale assets, any
of such receivables.
significant or extended decline in the fair value of a share to a level
below its acquisition value is regarded as an indication that an impair-
Leasing
ment requirement exists.
Any leasing agreements in which the economic risks and benefits asso-
If such evidence is present for available-for-sale financial assets, the
accumulated loss – calculated as the difference between acquisition
cost and current fair value, less any previous impairment charges
ciated with ownership are essentially transferred to the lessee are
defined as financial leases.
Assets leased under financial leasing agreements are classified in
reported in the income statement – is reclassified from equity to the
the consolidated balance sheet as tangible fixed assets. The commit-
income statement. Impairment of equity instruments, which is
ment to pay future minimum lease payments is reported as long and
reported in the income statement, is not reversed through the income
short-term liabilities. The assets are depreciated according to plan,
statement. Reversal of impairment of bonds is recorded in the Income
while rental payments are reported as interest and repayments of lia-
Statement on the same line as the impairment. Bonds are impaired
bilities.
when insolvency exists for the counterpart. Reversal of impairment of
Other leased assets are reported as operating leasing agreements,
bonds is recorded in the Income Statement on the same line as the
which implies that the leasing charges are expensed over the term of
impairment.
the lease on the basis of utilisation.
Income taxes
Inventories
General
Inventories are valued at the lower of acquisition cost, according to the
The Group’s total tax consists of current tax calculated on taxable
first-in, first-out method (FIFO), or net realisable value, less deductions
profit and deferred tax. Current tax and changes in deferred tax are
for any obsolescence. The acquisition cost for finished goods, products
reported in the income statement, with the exception of those
in process and work in progress consists of raw materials, direct sala-
deferred taxes reported directly against other comprehensive income.
ries, other direct expenses, and related indirect manufacturing
Deferred tax includes unutilised deficits from the translation of tax
expenses (based on normal manufacturing capacity). The net realisable
assessment to current tax rates, and other temporary differences
value is the estimated sales price in the operating activities, with
between book residual value and fiscal residual value. The tax value of
deductions for applicable variable selling expenses. Inventories mainly
unutilised loss carry-forward is capitalised to the degree it is probable
include bunker fuel, spare parts, merchandise for onboard sale, prod-
that this will entail lower tax payments in the near future.
ucts for bars and restaurants onboard the vessels and finished goods
Significant assessments are required from management in the calcu-
and products in progress. Costs for inventories include transfers from
lation of income tax liabilities, income tax receivables and deferred tax
comprehensive income of any gains or losses from cash flow hedges
for provisions and receivables. This process requires the assessment of
that comply with the conditions for hedge accounting as regards pur-
the Group’s tax exposure of current tax and the adoption of temporary
chases of raw material.
differences created by various taxation and accounting regulations. In
particular, management must assess the likelihood that deferred tax
Trade debtors
assets can be settled against surpluses in future tax assessment see
Trade debtors are reported at amortised cost reduced by any provision
also Note 2.
for uncollectibility. A write-down of trade debtors is made when there
exist objective evidence that the Group will be unable to receive all the
Current tax
amounts that are due in accordance with the original conditions of the
All companies within the Group calculate income tax in accordance
receivable. The amount of the allocation consists of the difference
with the tax regulations and ordinances in force in those countries
between the asset’s carrying amount and the present value of esti-
where the profit is taxed.
mated future cash flows, discounted by the effective interest rate. The
allocated amount is reported in the income statement.
22 STENA AB 2014
Accounts payable
principle is only applicable for group accounting. The parent company
Accounts payable are initially reported at fair value and subsequently at
and the subsidiaries apply local rules and accounting principles.
amortised cost.
Trade payables are obligations to pay for goods or services that have
Provisions
been acquired in the ordinary course of business from suppliers.
Generally, provisions are reported when there is an undertaking as a
Accounts payable are classified as current liabilities if payment is due
result of a historical event, in which it is probable that an outflow of
within one year or less. If not, they are presented as non-current liabili-
resources will be required to settle the undertaking and the amount
ties.
can be reliably estimated. Provisions are made in the amount that represents the best estimate of the amount required to settle the existing
commitment on the balance sheet date. Where there is doubt in the
Cash and cash equivalents include cash and bank balances with an
estimates referring to forthcoming events outside the Group’s control,
original maturity of three months or less.
the actual outcome may differ significantly.
Employee benefits
the balance sheet, it may be considered to comprise a contingent liabil-
Post-employment benefits, such as pensions and other benefits, are
ity and be disclosed. These commitments derive from historical events
predominantly settled by the means of regular payments to independ-
and their existence will be confirmed only when one or several uncer-
ent authorities or bodies thereby assuming pension commitments
tain future events, which are not entirely within the Group’s control,
towards the employees – that is to say, through so-called defined con-
take place or fail to take place. Contingent liabilities also include exist-
tribution plans. The Company thus pays set fees to a separate legal
ing commitments where an outflow of resources is not likely or a
entity and has no commitment to pay any further fees. Expenses are
sufficiently reliable estimate of the amount cannot be made.
When a commitment does not meet the criteria for recognition in
charged to the Group’s income statement, as administration costs, at
the rate that the benefits are earned. The remaining portion of
New IFRS issued but not effective for the financial year
post-employment benefits consists of defined benefit plans, in which
beginning 1 January 2014 and not early adopted
the commitments remain with the Company. Remuneration to employ-
A number of new standards and interpretations will be effective for
ees and former employees is paid on the basis of salary at retirement
financial years beginning after 1 January 2014. They have not been
date and number of years of service. The Company bears the risk for
adopted when preparing the Consolidated financial statements and
ensuring that the remuneration undertaken is paid. For defined benefit
the effects are currently evaluated. The following standards and
plans, the Company’s costs and the value of outstanding commitments
interpretations might have a material impact on the Group:
on balance sheet date are calculated on the basis of actuarial assump-
–IFRS 15 Revenue from Contracts with Customers establishes a
tions intended to determine the present value of issued commitments.
new framework for determining when and how much revenue to
The amount recognised in the balance sheet is the net total of the esti-
recognise. The standard introduces a five-step model to be applied
mated present value of the commitments and the fair value of the plan
to all contracts with customers in order to establish the revenue
assets, either as a provision or as a long-term financial receivable. In
recognition. Stena is yet to assess IFRS 15´s full impact. The manda-
cases in which a surplus in a plan cannot be fully utilised, only that
portion of the surplus that the company can recover through decreased
tory effective date is 1 January, 2017, with early application allowed.
–IFRS 9 Financial Instruments addresses the classification, measure-
future contributions or repayments is recognised. The setoff of a surplus
ment, recognition, impairment and derecognition of financial instru-
in a plan against a deficit in another plan is allowed only if a company
ments. It also addresses general hedge accounting. Stena is yet to
has the right to utilise a surplus in a plan to settle a deficit in another
assess IFRS 9´s full impact. The mandatory effective date is 1 January,
plan, or if the commitments are to be settled on a net basis.
2018, with early application allowed.
The pension expense and the pension commitment for defined benefit pension plans are calculated annually by independent actuaries. The
There are no other IFRS or IFRIC interpretations that are not yet effec-
commitment consists of the present value of expected future payments.
tive that would be expected to have a material impact on the Group.
The most important actuarial assumptions are stated in Note 22.
Actuarial gains and losses may result upon determination of the
Parent Company accounting principles
present value of the defined benefit commitment and the fair value of
The Parent Company applies the Swedish Annual Accounts Act and the
plan assets. These result either from differences between the actual
Swedish Financial Reporting Board’s recommendation RFR 2, Account-
return and expected returns, or changes in assumptions. Changes in the
ing for Legal Entities.
present value of the obligations due to revised actuarial assumptions
The Parent Company primarily applies the principles regarding
and experience adjustments on the obligation are recorded in other
consolidated financial statements described above. The discrepancies
comprehensive income as remeasurements. The actual return less calcu-
arising between the principles applied by the Parent Company and the
lated interest income on plan assets is also included in the other com-
Group result from limitations in the possibilities of applying IFRS in the
prehensive income as remeasurements. Past-service costs are recog-
Parent Company due to the Annual Accounts Act and, in some cases,
nised immediately in income for the period. The described accounting
due to taxation legislation.
STENA AB 2014 23
GROUP
CONT. NOTE 1
The most significant differences between the accounting principles
applied by the Group and the Parent Company are shown below.
The Parent Company applies RFR 2, which includes the exception in
the application of IAS 39, which concerns accounting and valuation of
financial contracts of guarantee in favour of subsidiaries and associated
companies. According to RFR 2 the principles for defined benefit plans
for in the finance net in the Income Statement. Hedge accounting is
not applied.
Shares in subsidiaries are recorded at acquisition cost, reduced by
any impairment.
Group contributions are accounted for in the income statement
after the financial net.
in IAS 19 does not have to be applied for a legal entity. Available for
In the Parent Company, in accordance with the Swedish Annual
sale shares are accounted according to the Swedish Annual Accounts
Accounts Act, the equity is split between restricted and unrestricted
Act 4:14d. Valuation changes in available for sale shares are accounted
equity.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are evaluated continuously and are based
Assets with definite lives
on historical experience and other factors, including expectations of
Rights to routes and other intangible assets which are amortised are
future events that are considered reasonable under the prevailing cir-
tested annually for impairment when there are indicators that the
cumstances.
intangible asset should be impaired. Important indicators are:
The Board of Directors and Company management make estimates
– Significant decline in the economic environment.
and assumptions concerning future developments in conjunction with
– Decline of the operating result compared to historic and budgeted
the preparation of the annual accounts. The resulting accounting esti-
operating results. See also Note 9.
mates will, by definition, rarely be equal to the actual results. Those
As of 31 December 2014, the net book value of rights to routes and
estimations and assumptions implying a significant risk for material
other intangible assets amounts to MSEK 1,111, as compared to MSEK
adjustments in the carrying amounts of assets and liabilities during the
1,079 as of 31 December 2013.
next financial period are discussed below.
b) Impairment testing of vessels
a) Impairment testing for intangible assets
The Group makes yearly an assessment of whether or not a write-
According to IFRS, intangible assets are to be defined as having either
down requirement exists as regards the value of vessels. See further
definite or indefinite lives. Intangible assets with indefinite useful lives
the description under Note 1, “Impairment of non-financial assets”.
are not amortised but instead tested annually for impairment. Good-
The recoverable amount is determined on the basis of calculations
will, according to IFRS, has by definition an indefinite useful life and is
of value in use where impairment indications has been found. These
therefore not amortised. From 2014 trademarks are also considered to
calculations are based on estimated future cash flows.
have indefinite useful life and is no longer amortised.
c) Retirement benefits
Assets with indefinite useful lives
The Group has defined benefit pension plans in the United Kingdom,
Goodwill and trademarks is subject to annual impairment testing
Sweden and the Netherlands. The pension calculations are based on
according to the described accounting principle in Note 1. The recover-
assumptions about discount rate, mortality rate, inflation and future
able amount for cash-generating units have been determined by calcu-
pension and salary increases. Changes in assumptions directly affect
lating value in use. These calculations require the use of estimates
the present value of the defined benefit obligation and costs and
which affects future cash flows and the determination of a discount
revenues associated to pensions. An analysis of sensitivity of the most
rate, see Note 9. As of 31 December 2014, the net booked value of
essential assumptions is presented in Note 22, Employee benefits.
goodwill amounts to MSEK 2,459 as compared to MSEK 2,372 as of 31
December 2013.
d) Deferred taxes
In the preparation of the financial statements, Stena prepares a calcu-
The net book value of trademarks amounts to MSEK 708 as of 31
lation of income tax, including a calculation of every fiscal area in
December 2014 and to MSEK 704 as of 31 December 2013.
which the Group operates, as well as of deferred taxes attributable to
temporary differences.
24 STENA AB 2014
Deferred tax assets that are primarily attributable to tax loss carried
be disclosed. These commitments arise from events that have taken
forward and temporary differences are reported if the tax assets can
place and their existence will be confirmed only when one or several
be expected to be recovered through future taxable income. Changes
uncertain future events, which do not lie entirely within the Group’s
in the assumptions regarding forecasted future taxable income, as well
control, take place or fail to take place. Contingent liabilities also
as changes in tax rates, may result in significant differences in the valu-
include present commitments where an outflow of resources is not
ation of deferred taxes.
likely or a sufficiently reliable estimate of the amount cannot be made.
e) Provisions
f) Fair value of financial instruments
Generally, provisions are reported when there is an undertaking as a
The Group calculates discounted cash flows for different available-for-
result of a historical event, where it is likely that an outflow of
sale financial assets which are not traded on an active market.
resources will be required to settle the undertaking and a reliable
amount can be estimated.
Provisions are made to the amount that represents the best estimate
g) Valuation of investment properties
The fair value of an investment property can only assertively be set at
of the amount required to settle the existing commitment on balance
the date of sale. The valuation of investment properties is based on
sheet date. Where there is doubt in the estimates referring to forth-
accepted principles and assumptions, therefore, the fair value is not the
coming events outside the Group’s control, the actual outcome may
exact value but an estimate. In a normal market the fair value of a
differ significantly.
property is within a range of +/–5% to 10% and in a less liquid market
When a commitment does not meet the criteria for reporting in the
balance sheet, the amount can be considered a contingent liability and
the range can be larger. The range of +/–5% is equal to +/– MSEK
1,468 for the Group.
STENA AB 2014 25
GROUP
3. SEGMENT INFORMATION
Stena is an international group that is involved mainly in ferry opera-
procurement and marine engineering consultancy services as well as
tions, offshore drilling, shipping, real estate and new businesses –
research and development.
Adactum. There are no material transactions between these operating
segments.
Revenue from shipping operations comprises mainly charter revenue
from owned or chartered vessels as well as ship management revenue
Ferry operations are operated via Stena Line, Scandlines and HH
from vessels under Stena management. Direct operating costs mainly
Ferries in Scandinavia, the United Kingdom, Germany, Estonia, Poland,
comprise costs for vessel charter, fuel, staff, insurance and other oper-
the Netherlands and Ireland. Stena Line is one of the world’s leading
ationally related vessel costs.
ferry operators. As at 31 December 2014, operations comprised 22
Property operations comprise investments in residential properties
strategically located ferry services, 42 vessels and six ports in Scandina-
and commercial properties, primarily in Sweden and the Netherlands.
via, the United Kingdom and the Netherlands.
In total, Stena owns and manages on behalf of affiliated companies
Income is generated mainly through (i) freight – mainly comprising
2.4 million square metres mainly in Sweden. The holdings comprise
revenue from freight traffic and truck traffic, (ii) ticket sales, comprising
around 23,600 residential units as well as commercial properties.
revenue from tickets for private individuals and private cars, package/
Stena Property is one of Sweden’s largest privately owned property
charter trips and hotel accommodation; and (iii) onboard sales, mainly
companies.
comprising revenue from shops, restaurants, bars, gaming and, on the
Revenue comprises rents from tenants in the company’s properties
Norway–Denmark route, tax-free sales. The direct operating costs
as well as management revenue from managed properties. The costs
mainly comprise staff costs, the cost of purchasing goods sold on
refer mainly to maintenance, heating and staff.
board, fuel costs, vessel charter costs, commission, package trip costs
and other related costs.
Drilling operations are conducted by Stena Drilling, which has its
head office in Aberdeen in Scotland. Stena Drilling is one of the
New businesses – Adactum include long term financial involvement
and investment in operations outside Stena’s core operating areas and
take place through the business unit Stena Adactum.
Stena Adactum is the Group’s investment company that invests
world’s leading companies in the development, construction and
long-term in listed and unlisted companies. The aim is to build up
operation of drilling rigs and drillships. The fleet comprises two
strong, profitable companies that can form a platform for new busi-
third-generation and one fifth-generation semi-submersible drilling
ness areas within the Stena sphere. Stena Adactum comprises five
rigs and four sixth-generation drillships for ultra-deepwater operations,
subsidiaries (of which four are wholly owned and one in which the
of which one is an ice-class vessel. The revenue comprises revenue
company has a 63% holding) and two associated companies that are
from charter contracts for drilling rigs and drillships. The direct operat-
listed. The subsidiaries carry on operations in five different operating
ing costs are mainly staff costs, fuel costs and costs for insurance,
sectors:
maintenance and catering.
• Blomsterlandet is a retail chain with one of the largest ranges of
Shipping operations comprise ownership and leasing of oil tankers
and RoRo vessels. To support operations, the company is also involved
in management and manning, as well as the design, purchase, sale and
redevelopment of such vessels.
Stena Bulk is one of the world’s leading tanker companies. Stena
Bulk develops pioneering tankers that satisfy customers’ demand for
safe transport and innovative logistics. Stena Bulk controls a fleet of
116 tankers and has operations in all segments of the tanker market.
Stena RoRo provides vessels, innovative solutions and project
indoor and outdoor plants in Sweden.
• Envac provides automated waste collection systems for households
and municipal authorities and has offices in 21 countries.
• Stena Renewable through which the company commence successful operations of Sweden’s largest land-based wind power generating farms. A total of 96 wind turbines have been constructed on
these wind farms.
• Ballingslöv is an international group operating in the kitchen,
bathroom and storage sector with the ambition of becoming one
management. The company’s customers are operators and ship
of the leading players on the European market for these products.
owners throughout the world.
The company has manufacturing units in Ballingslöv, the United
Northern Marine Management (NMM) is Stena’s international
company in the ship management sector with its head office in Glas-
Kingdom and Denmark.
• Mediatec is one of the leading companies in Europe in media tech-
gow in Scotland and with a global customer base. With an extensive
nology, including direct transmission TV production, large screen
customer portfolio and a large number of vessels under management,
facilities and technical solutions for trade fairs and events.
the company is a market leader in advanced ship management. The
company operates a high-tech fleet of around 100 vessels from its
worldwide network of offices in various cities around the world,
The primary measures of profitability for these segments are the
including Aberdeen, Glasgow, Gothenburg, Hamburg, Houston,
“operating result” and “EBITDA”. These measures are also those
Mumbai, Manila, Singapore and St Petersburg.
that are reported to the Company’s supreme decision-makers. In the
Stena Teknik is a joint resource for all maritime operations within
Stena. Operations comprise new-builds, redevelopment projects,
26 STENA AB 2014
Other operations covers undistributed, central administration costs.
Group, this function is held by the Stena AB Board of Directors, which
makes all strategic decisions.
Reconciliation between EBITDA and income from operations by segment
MSEK
Ferry operations
2013
EBITDA
Net gain on sale of vessels
Income from operation
Drilling
EBITDA
2014
1,523
1,958
(1,253)
(1,636)
2
272
322
3,335
4,120
(1,774)
(2,110)
1,561
2,010
Shipping operation
– RoRo
EBITDA
– Tanker
Property
(6)
EBITDA
706
863
(393)
(420)
313
443
EBITDA
(90)
(28)
(65)
(118)
(65)
153
372
1,517
1,526
224
362
EBITDA
(5)
(3)
Net gain on sale of investment properties
51
212
1,787
2,097
New businesses – Adactum
23
(42)
Total Shipping
324
(330)
– Other shipping
217
(282)
EBITDA
Other
EBITDA
Total
816
809
(376)
(400)
440
409
(301)
(316)
(25)
(28)
(326)
(344)
EBITDA
7,723
9,284
Net gain on sale of investment properties
224
362
(4,136)
(4,992)
25
51
212
3,887
4,865
STENA AB 2014
27
GROUP
CONT. NOTE 3
Depreciation and amortisation by segment
MSEK
2013
2014
Ferry operations
1,253
1,636
Drilling
1,774
2,110
RoRo vessels
282
330
Tanker operations
393
420
Shipping operations
Other shipping
28
65
Total Shipping
703
815
Property
5
3
376
400
Other
25
28
Total
4,136
4,992
Depreciation and amortisation expense consists of the following components
MSEK
Vessels
Equipment
Buildings and land
Ports
Total tangible assets
Intangible assets
Total
2013
2014
3,330
4,056
498
542
42
46
119
127
3,989
4,771
147
221
4,136
4,992
Depreciation and amortisation expense include amortisation of assets under capitalised leases amounting to MSEK 39 for the years ended
31 December 2014 and 2013, respectively.
Investments in tangible fixed assets by segment
MSEK
2013
Ferry operations
Drilling
Shipping operations
28 STENA AB 2014
2014
344
856
3,361
2,769
RoRo vessels
674
152
Tanker operations
434
206
Other shipping
22
70
Total Shipping
1,130
428
Property
1,104
1,298
1,080
330
Other
33
18
Total
7,052
5,699
Total assets by segment
As of 31 December
MSEK
2013
2014
Ferry operations
17,917
18,570
Drilling
27,659
33,359
RoRo operations
2,725
3,252
Tanker operations
6,864
8,149
Shipping operations
Other shipping operations
Total Shipping
Property
724
762
10,313
12,163
29,969
31,692
9,534
10,012
Other
12,820
20,021
Total
108,212
125,817
Geographic information
The Groups shipping operations within Stena RoRo and Stena Bulk are
Scandinavia and the rest of Europe. The Company’s drilling operations
mainly conducted between ports all over the world by short- and long-
are conducted in the North Sea (Scandinavia and Europe, respectively)
term contracts. These activities are not allocated to a geographic area.
but also in markets outside Europe. The Company’s investments in
The ferry operations and the property operations are conducted in
SPEs are included in Other markets.
Total revenue per geographic area
As of 31 December
MSEK
Scandinavia
2013
2014
13,164
13,620
Europe, other
8,085
9,811
Other markets
6,594
7,846
Shipping
Total
2,397
2,286
30,240
33,563
Total assets per geographic area
As of 31 December
MSEK
2013
2014
Scandinavia
39,492
40,908
Europe, other
29,634
31,399
Other markets
12,610
20,895
Shipping
Total
26,476
32,615
108,212
125,817
STENA AB 2014 29
GROUP
4. SALE OF TANGIBLE FIXED ASSETS
MSEK
Vessels
2013
Sales price
335
Net book value
(310)
25
Sales price
Net book value
Net gain on sale of properties
Total
2014
Sales price
Net book value of assets sold
Total gain
295
704
(244)
(492)
51
212
630
704
(554)
(492)
76
212
Total sales price include sales costs of MSEK 6 in 2014 and MSEK 2 in 2013, which is not included on the line “Cash proceeds from sale of t angible fixed
assets” in the consolidated statement of cashflow for 2014 and 2013, respectively. Furthermore, the vessel Stena Baltica was sold as a hire-purchase
contract during 2013 which also is an explanation by comparison with the consolidated statement of cashflows, MSEK 17 and (155) in 2013. No vessels
have been sold during 2014.
5. ADMINISTRATIVE EXPENSES
For the year ended 31 December 2014, administrative expenses include R&D costs amounting to MSEK 42. For the year ended 31 December 2013,
administrative expenses include R&D costs amounting to MSEK 74. Fees and other remuneration to auditors and advisors are set forth below:
Fees to the auditors
Audit fees
2013
2014
20
23
Audit-related fees
2
Tax advisor services
2
Other fees
1
1
23
30
Total
Audit fees to other auditing firms
Group Total
1
1
24
31
Audit fees relate to examination of the annual report, financial
services required by enactment, articles of association, regulations or
accounting and the administration by the Board and the President as
agreement. Tax services include both tax consultancy and tax compli-
well as other tasks related to the duties of a company auditor. The
ance services. Other fees are other assigments.
audit operation includes, except the audit, other quality assurance
30 STENA AB 2014
4
6. PARTICIPATIONS IN ASSOCIATED COMPANIES, JOINT VENTURES
AND OTHER COLLABORATIVE ARRANGEMENTS
All associated companies, joint ventures and other collaborative
arrangements are reported under this heading. Three joint operations
The Company´s share of results amounted to MSEK 15 in 2014 and
MSEK 12 in 2013.
have been identified under other collaborative arrangements but none
As of 31 December 2014 and 31 December 2013, the investment in
of these are assessed to be of a material nature. Associated companies
Gunnebo AB (publ) represents 26.1% of the capital and the votes. The
and joint ventures are reported according to the equity method whilst
market value of the investment as of 31 December 2014 and 2013 was
joint operations are reported according to the proportional method.
MSEK 748 and MSEK 794, respectively. The Company´s share of results
See also Note 1 under the heading “Participations in associated com-
in 2014 amounted to MSEK 59 and MSEK 27 in 2013.
panies, joint ventures and other collaborative arrangements”.
Associated companies are divided into strategic holdings and other
holdings. The result from other holdings more directly attributable to
The investments in Midsona AB (publ) and Gunnebo AB (publ) are
pledged as security for bank debt.
In 2011, the subsidiary Stena Investment Sarl invested MSEK 106 in
operations is reported under direct operating costs whilst strategic
Wisent Oil & Gas Plc, which is an oil exploration company. The value of
holdings are reported under net financial income/expense under the
the investment as of 31 December 2011 was MGBP 10. During 2012
heading “Share of associated companies result”.
Stena Investment Sarl invested further MGBP 7. During 2013 the shares
The Group has three holdings that are regarded as strategic:
Midsona AB (publ), Gunnebo AB (publ) and Wisent Oil & Gas Plc.
As of 31 December 2014 and 31 December 2013, the investment in
were written down by MSEK 48 and in 2014 the remaining booked
value has been written down amounting to MSEK 79. The Company´s
share of results in 2014 amounted to MSEK 0 and MSEK (42) in 2013.
Midsona AB (publ) represents 23.5% of the capital and 25.1% of the
As per 31 December 2014 and 2013 the investment represents 30% of
votes. The total market value of the investment as of 31 December
the capital and votes.
2014 was MSEK 167. As of 31 December 2013 the total share of the
market value was MSEK 155.
Amounts recorded in the balance sheet are as follows:
As of 31 December
MSEK
2013
2014
Strategic holdings
934
922
Other holdings
135
7
Joint ventures
405
506
1,474
1,434
Total
Amounts recorded in the income statement are as follows:
MSEK
2013
Strategic holdings
(110)
10
(10)
(89)
Other holdings
Joint ventures
Total
2014
67
(18)
(53)
(97)
STENA AB 2014
31
GROUP
CONT. NOTE 6
Strategic holdings
MSEK
Opening balance
2013
2014
1,073
934
Investments
3
Disposals
(2)
Result from associated companies
– Share of profit
– Write down
(3)
74
(48)
(79)
– Other
(59)
15
Dividend
(23)
(25)
Exchange differences
(4)
2
Other changes
(2)
Closing balance
934
922
For the years ended 31 December 2014 and 2013, investments reported according to the equity method include goodwill amounting to MSEK 342,
respectively.
The Group’s share of the results of its associates and its total assets (including goodwill) and liabilities are as follows:
MSEK
Country of
incorporation
Assets
Liabilities
Equity
Revenues
Profit/
(loss)
% Interest
held
Group
result
Book
value
2013
Midsona AB (publ)
Sweden
1,172
462
710
916
51
24%
12
128
Gunnebo AB (publ)
Sweden
4,335
2,872
1,463
5,271
102
26%
27
729
Jersey
68
13
55
(146)
30%
(90)
77
(51)
934
Group
result
Book
value
Wisent Oil & Gas Plc
Total
MSEK
Country of
incorporation
Assets
Liabilities
Equity
Revenues
Profit/
(loss)
% Interest
held
2014
Midsona AB (publ)
Sweden
1,199
448
751
920
64
24%
15
141
Gunnebo AB (publ)
Sweden
4,825
3,131
1,694
5,557
227
26%
59
781
Jersey
57
4
53
(2)
30%
(79)
Wisent Oil & Gas Plc
Total
(5)
922
For practical reasons Midsona and Gunnebo are included in the consolidated figures for the Stena AB Group with a certain time lag, normally one
quarter.
32 STENA AB 2014
Summary of information about the Group’s share of income and comprehensive income
Below is the financial summary of the information related to the Group’s strategic associated companies that are reported using the equity method.
The information refers to the Stena AB Group’s share of the amounts reported in the associated companies year-end accounts, adjusted for differences in accounting principles between the Group and the associated companies.
MSEK
2013
Net income
2014
(3)
74
(59)
15
Total
(62)
89
Other holdings
MSEK
Opening balance
Investments
2013
2014
128
135
18
Disposals
(26)
Result from associated companies
– Share of profit
(10)
(108)
– Write down
– Other
19
Dividend
(1)
7
Other changes
(20)
Closing balance
135
7
The Group’s share of the results of its associates and its total assets and liabilities are as follows:
MSEK
Country of
incorporation
Assets
Liabilities
Equity
Revenues
Profit/
(loss)
% Interest
held
Liberia
517
392
125
97
(17)
35%
Group
result
Book
value
2013
Paradise Tankers Corporation
Total
MSEK
Country of
incorporation
Assets
Liabilities
Equity
Revenues
Profit/
(loss)
% Interest
held
701
764
(63)
163
(55)
35%
(6)
106
(6)
106
Group
result
Book
value
2014
Paradise Tankers Corporation
Shining Sunrise Pte Ltd
Liberia
Singapore
(88)
Total
(88)
In two of the holdings there are unaccounted result of shares amounting to MSEK (23) for 2014 and accumulated MSEK (23) at 31 December 2014.
During 2014 all shares in Paradise Tankers Corporation has been sold.
STENA AB 2014 33
GROUP
CONT. NOTE 6
Below is the financial summary of the information related to the Group’s other holdings that are reported using the equity method. The information
refers to the Stena AB Group’s share of the amounts reported in the companies’ year-end accounts, adjusted for differences in accounting principles
between the Group and the companies.
MSEK
Net income
2013
2014
(10)
(108)
(10)
(108)
Total
Joint ventures
MSEK
2013
2014
321
405
31
90
59
(27)
8
9
Dividend
(9)
(37)
(5)
Opening balance
Investments
Disposals
Result from joint ventures
– Share of profit
– Write down
– Other
98
Other changes
(32)
Closing balance
405
506
The Group’s share of the result in joint ventures and its assets and liabilities are as follows:
Country of
incorporation
Assets
Liabilities
Equity
Nordic Rio LLC
Marshall Islands
294
159
Naviation Gothenburg LLC
Marshall Islands
573
551
Glacia Limited
Bermuda
402
185
Northern Marine Australia Ltd
MSEK
Revenues
Profit/
(loss)
% Interest held
Group
result
Book
value
135
51
22
81
33
50%
11
53
41
50%
7
216
71
13
24
50%
12
108
2013
Australia
4
3
1
2
Partrederiet SUST I DA
Norway
308
138
170
79
(19)
50%
Partrederiet SUST III DA
Norway
323
149
174
122
3
50%
Denmark
414
222
192
2,807
94
50%
Stena Weco AS
34 STENA AB 2014
50%
(12)
42
62
49
127
67
405
MSEK
Country of
incorporation
Assets
Liabilities
Equity
Revenues
Profit/
(loss)
% Interest held
Group
result
Book
value
2014
Nordic Rio LLC
Marshall Islands
347
327
20
53
31
50%
(53)
4
Naviation Gothenburg LLC
Marshall Islands
644
605
38
86
45
50%
7
4
Glacia Limited
Bermuda
499
199
299
79
32
50%
16
150
Northern Marine Australia Ltd
Australia
40
30
10
129
10
50%
5
5
Noway
348
13
335
62
(37)
50%
(21)
122
Partrederiet SUST I DA
Partrederiet SUST III DA
Stena Weco AS
Norway
313
114
200
38
(41)
50%
(23)
73
Denmark
587
361
226
3,424
103
50%
51
149
(18)
506
Below is the financial summary of the information related to the Group’s joint ventures that are reported using the equity method. The information
refers to the Stena AB Group’s share of the amounts reported in the companies’ year-end accounts, adjusted for differences in accounting principles
between the Group and the companies.
MSEK
Net income
2013
2014
67
(18)
67
(18)
Total
STENA AB 2014 35
GROUP
7. FINANCE NET
MSEK
2013
2014
Share of associated companies result (see Note 6)
(51)
(5)
43
Dividends received from share holdings
48
Dividends received from financial fixed assets
12
11
Total Dividends
60
54
Realised result from sale of trading shares
Realised result from sale of available sale shares
(52)
(5)
70
247
Realised result from sale of financial instruments measured at fair value through the income statement
223
38
Realised result from security investments
119
(32)
Unrealised result from sale of trading shares
20
(166)
Unrealised result from sale of financial instruments measured at fair value through the income statement
64
2
444
84
Interest income from investments in SPEs
207
262
Interest income
282
213
Total Interest income
489
475
Total Gain (loss) on sale of securities
Interest expense from investments in SPEs
(127)
(64)
Interest expense
(2,259)
(2,459)
Total Interest expense
(2,386)
(2,523)
Exchange differences pertaining to trading operations
(4)
50
Translation difference
(37)
105
Total Foreign Exchange Gain (loss)
(41)
155
Amortisation of deferred finance costs
(97)
(148)
Commitment fees
(38)
(49)
Bank charges
(23)
(24)
Other financial items
(26)
(29)
Other financial expenses from investments in SPE’s
Total other financial income/expense
Finance net
(70)
(56)
(254)
(306)
(1,739)
(2,066)
There has been no material inefficiency in our cash-flow hedges.
Amortisation of deferred finance cost are the capitalisation of the finance cost related to long-term loans and lease agreements amortised over
the particular period of the loan. See Note 30.
36 STENA AB 2014
8. INCOME TAXES
Income before taxes is distributed geographically as follows:
MSEK
Sweden
2013
2014
86
1,191
Rest of the world
2,062
1,608
Total income before taxes
2,148
2,799
Current tax
For the period, Sweden
For the period, rest of the world
Adjustments previous years, rest of the world
Total current tax
(19)
(77)
(213)
(365)
(55)
(7)
(287)
(449)
234
(67)
(1)
15
Deferred tax
For the period, Sweden
Adjustments previous years, Sweden
For the period, rest of the world
Adjustments previous years, rest of the world
Total deferred tax
Total income taxes
(14)
41
(170)
52
49
41
(238)
(408)
Difference between the statutory tax rate in Sweden and the effective tax rate, percentage:
Percentage
Statutory income tax rate Sweden
2013
2014
22
22
Differences in foreign tax rates
7
1
Taxes related to previous years
1
2
(5)
(2)
Increase in loss carried forward without recognition of deferred tax
Expenses not deductible
Non-taxable income
Utilised tax losses carried forward
Restructuring
Change in tax rate, net
Other
Effective income tax rate
1
1
(2)
(1)
1
1
(18)
(10)
(1)
(1)
5
2
11
15
The principle reason why the effective income tax rate is lower than the statutory income tax rate for 2014 and 2013 is that the international
shipping activities and capital gains, sales of financial instruments, are to a large extent tax exempt in many countries. During 2013 the Company
reversed provisions for law suits that has gained legal force.
STENA AB 2014 37
GROUP
9. INTANGIBLE FIXED ASSETS
MSEK
Other in
tangible
assets
Total
759
10
4,976
98
46
Goodwill
Trademarks
Rights to
routes
Distribution
agreements
IT
investments
2,333
830
730
314
Acquisition costs
Opening balance as per 1 January 2013
Additions
231
Disposals
Transfers
Translation differences
Purchase of company (Note 29)
(39)
(85)
61
10
26
3
12
1
1
43
2,505
833
803
314
829
57
5,341
14
38
72
2
77
5
156
(34)
(4)
(38)
24
Additions
Disposals
Transfers
18
58
4
2,605
375
(39)
(14)
(25)
4
80
7
18
9
176
(3)
837
955
298
894
81
5,670
(132)
(106)
(32)
(182)
(605)
(10)
(1,067)
(4)
(1)
(2)
(1)
(8)
Accumulated amortisation
Disposals
Transfers
(133)
3
(45)
(25)
(55)
(129)
(77)
(207)
(629)
(14)
(6)
(11)
(24)
36
36
7
(20)
Current year amortisation
38 STENA AB 2014
(147)
(22)
Disposals
Transfers
33
3
Current year amortisation
33
(146)
(129)
(11)
(1,186)
25
(2)
3
(115)
(46)
(60)
(221)
(206)
(234)
(666)
(11)
(1,392)
Net book value as of 31 December 2013
2,372
704
726
107
200
46
4,155
2,459
708
749
64
228
70
4,278
Goodwill is allocated to the Group’s cash-generating units
The discount rate used in the impairment testing of goodwill within
(CGUs) identified by segment. A segment-level summary of the
ferry operations was 6% before tax. The growth rate for revenues has
goodwill allocation is presented below.
been individually assessed for each company or route and fluctuates
between 2–5% until 2019 and 0–2% thereafter.
As of 31 December
MSEK
As of 31 December 2014, the recoverable values based on value in
2013
2014
use of the cash generating units were found not to fall short of their
1,903
1,978
net booked values in any test and therefore the related goodwill was
430
437
Other
39
44
Total
2,372
2,459
Ferry operations
not impaired.
A number of sensitivity tests have been made in order to examine
possible need for impairment. For these sensitivity tests the used
discount rate was 2% higher than above described discount rate.
Impairment testing of goodwill is conducted annually and whenever
Also when applying these estimates no goodwill impairment is
conditions indicate that impairment may be necessary. The recoverable
indicated for material cash generating units.
value for cash generating units is based on the calculated value in use.
The key assumptions used for calculated value in use are discount rate
Trademarks
and growth rate.
Trademarks are mainly related to the segment Adactum. During 2014
The discount rate before tax used in Adactum was 6–8%. The
impairment testing has been performed for all trademarks within
growth rate for revenues used in Adactum has been individually
Adactum. The tests have been performed according to the same
assessed for each company and year until 2023. During this period
procedure as for establishing the recoverable value for goodwill, see
growth rate fluctuates between 3–5% until 2017 and 2% after 2017
description above. The discount rate before tax used for the individual
until 2023. For subsequent periods revenues is estimated to have a
trademarks was 6–8% and the growth rate for revenues used until
growth corresponding to 1.5%, based on reasonable prudence.
year 2017 was 3–5%. For subsequent periods revenues is estimated
An extended time for prognosis can be verified as all companies
to have a growth corresponding to 2%. None of the performed tests
have been in operation for a substantial time and have a well-estab-
indicated any impairment for trademarks. As from 2014 no deprecia-
lished business model. Adactum has a long-term ownership perspec-
tions are made on trademarks within Adactum since they are assessed
tive and are working to further develop the companies through active
to have an indeterminable useful life.
ownership and financial strength without any disposals of companies.
The same principles were applied within Adactum last year.
STENA AB 2014 39
GROUP
10. TANGIBLE FIXED ASSETS
MSEK
Vessels
Construction
in progress
Other
equipment1)
Windmills1)
Buildings
and land
Total
61,049
2,647
5,692
507
1,522
71,417
Acquisition costs
258
Additions
2,510
Disposals
Transfers
74
395
56
6,045
2,482
243
(2,211)
(161)
(110)
(29)
(12)
(2,523)
1,089
(2,484)
(174)
1,085
(19)
(503)
(35)
(34)
22
62,660
2,450
5,747
Additions
1,588
2,134
420
Disposals
(1,053)
(109)
Transfers
867
(1,075)
17
(30)
2,317
1,627
74,801
3
76
4,221
(292)
(63)
(1,517)
171
37
754
63
92
92
9,962
569
528
118
11,177
74,024
3,969
6,666
2,320
1,795
88,774
(20,341)
(3,826)
(113)
(630)
(24,910)
(46)
(41)
1,990
101
Accumulated depreciation
Disposals
16
(3)
(90)
5
2,112
28
(37)
(9)
(18)
Transfers
(5)
264
14
273
Current year depreciation
(3,330)
(392)
(106)
(42)
(3,870)
(21,704)
(3,931)
(203)
(665)
(26,503)
1,119
266
63
1,448
(36)
(3,579)
Disposals
(21)
(3,242)
Transfers
(21)
(301)
(15)
5
(10)
(4,056)
(10)
(416)
(116)
(46)
(4,644)
(27,883)
(25)
(4,403)
(314)
(684)
(33,309)
40,956
2,450
1,816
2,114
962
48,298
46,141
3,944
2,263
2,006
1,111
55,465
1) Recorded as equipment in the balance sheet
The insured value of the whole vessel fleet as of 31 December 2014
and MSEK 51 for the years ended 31 December 2014 and 2013,
2013.
respectively. The amount of interest capitalised on windmill projects
As of 31 December 2014, construction in progress includes new
orders of two IMOIIMAX-vessels and one drilling rig. The drilling rig
were ordered from Samsung in South Korea on the 26 June 2013 for
and on windmills was MSEK 8 and MSEK 26 for the years ended 31
December 2014 and 2013, respectively.
Valuation certificates issued on 31 December 2014 by independent
delivery during second half-year 2016. The two IMOIIMAX-vessels are
valuation institutions indicate that the values in the vessel fleet exceeds
expected to be ready in the beginning of 2017. Construction in pro-
net book value with MSEK 4,082, as compared to MSEK 5,315 as of 31
gress also includes investments in windmills in Sweden.
December 2013.
Altogether the vessel orders amounts to MSEK 6,139. In the closing
value for construction in progress an advance of MSEK 1,791 to the
shipyard and MSEK 299 for windmill projects are included. Capitalised
interest of MSEK 152 and other capitalised costs of MSEK 1,702 are
also included.
40 STENA AB 2014
The amount of interest capitalised on vessel projects was MSEK 109
was MSEK 60,686, as compared to MSEK 52,837 as of 31 December
Part of the vessels net booked value refers to vessels held in accordance with financial leasing agreements, see Note 25.
11. PORTS
MSEK
Ports
Acquisition costs
2,738
Revaluation
122
Additions
1
Disposals
(2)
Transfers
461
25
3,345
Additions
183
Disposals
(66)
Transfers
2
389
3,853
Accumulated depreciation
(922)
Revaluation
1,241
Disposals
2
(13)
Transfers
(273)
(119)
(84)
Disposals
58
(11)
(127)
(164)
3,261
3,689
The group owns ports in Sweden, the United Kingdom and the
was made in regards to the port located in the Netherlands. The net
Netherlands. Ports are used in our own regime and includes ports,
value of the transfer was MSEK 188.
terminal buildings etc.
As of 1 January 2013 the group changed accounting principle in
regards to valuation of ports from cost method to revaluation method.
It had an effect of MSEK 1,363 increase in value of ports, MSEK 122
In determining fair value independent assessors was used for the
ports in the United Kingdom and the Netherlands. In determining fair
value of ports in Sweden an internal valuation model was used.
The closing balance as of 31 December 2014 would have been
allocated at cost and MSEK 1,241 allocated at depreciation. In conjunc-
MSEK 2,259 if ports were valued at acquisition cost less accumulated
tion to the revaluation, a transfer from equipment and land to ports
depreciations compared to MSEK 1,939 as of 31 December 2013.
STENA AB 2014
41
GROUP
12. INVESTMENT PROPERTIES
As of 31 December
MSEK
Opening balance as of 1 January at fair value
2013
2014
26,367
27,626
Additions
809
746
Reclassification of construction in progress
289
369
(239)
(518)
Disposals
Unrealised fair value adjustments
224
362
176
360
27,626
28,945
Opening balance as of 1 January at fair value
291
205
Additions
203
550
(289)
(369)
205
422
27,831
29,367
Fair value as of 31 December
Investment Properties – Construction in progress
Reclassification of construction in progress
36
Closing balance at fair value
Total fair value of Investment properties as of 31 December
Investment Property – impact on the result
For the years ended 31 December
MSEK
2013
2014
Rental Income
2,396
2,428
Direct cost
(848)
(835)
Valuation of investment properties
Total
Investment properties are residential and commercial properties.
Valuation of the investment properties is performed at year end and
362
1,772
1,955
The estimated market value of investment properties is MSEK 29,367
whereof MSEK 25,001 are attributable to Swedish properties. Last year
at each quarter by assessing each individual property’s fair value. The
the estimated market value of investment properties was MSEK 27,831
valuation method is based on the direct yield method and the net
whereof MSEK 24,007 was attributable to Swedish properties.
operating income is based on market rental income with a deduction
To guarantee the valuation, external valuations have been obtained
for rental vacancy level of 0–1% for residential properties and 0–15%
from DTZ for the Swedish properties. The external valuations cover
for commercial properties. In the assessment consideration of type of
39% of the total property value in absolute terms but these selected
property, technical standard and type of construction has been taken.
properties represent 64% of the properties in terms of property types,
The assessment of the yield requirements is based on the market yield
technical standard and building design.
requirements in respect of the purchase and sale of comparable prop-
External valuations have been performed on 29% of the investment
properties outside Sweden.
erties in similar locations.
At the valuation as of 31 December 2014, the following rates of
A comparision between the internal and external valuations reveals
that the internal valuation are within a normal +/– 10% range compared
returns have been used:
Rate of return %
42 STENA AB 2014
224
Location
Residential
Commercial
Sweden
2.50–6.00
5.00–8.00
Eurozon
n/a
5.5–12.5
to the external valuation.
13. INVESTMENT IN SPES
Since late 2002, the Company has invested in variable interest entities
years 2004, 2006, 2007, 2012 and 2014. The CLOs 2004 and 2007
(“SPEs”) managed by Canyon Capital, USA. The SPEs have invested in
were unwind during year 2014 and have been almost fully payed out.
different debt securities, including high yield bonds. The SPEs have
issued debt securities which are secured by their assets.
The Company’s risk is limited to its equity investment.
During year 2014 the Company has had investments in five different
CLOs (“Collateral Loan Obligation”). The CLO:s were started during the
The non-controlling interest for the CLO2006 is 11% and for the
CLOs 2012 and 2014 both it’s 20%. For the unwind CLO2004 the
non-controlling interest is 8% and for the CLO2007 5%.
The assets and liabilities of the SPEs are consolidated in our financial
statements, although the debt of the SPEs is a non-recourse to the
Company.
The consolidation of the SPEs has had the following impact:
MSEK
Earnings attributed to Equity holders of the Parent Company
Net income
Investments in SPEs1)
2013
2014
115
82
14
11
129
93
4,311
8,112
385
451
Other assets
58
156
Total assets
4,754
8,719
612
897
Short-term investments2)
Shareholders’ equity
Minority interest
Total shareholders’ equity
Debt of SPEs3)
Other debt
27
21
639
918
3,944
7,540
171
261
Total liabilities
4,115
7,801
Total shareholders’ equity and liabilities
4,754
8,719
As of 31 December
MSEK
2013
2014
The investment in SPEs are classified as follows:
Corporate Fixed Income Bonds are classified as “available for sale” and revalued in other comprehensive income
219
214
Senior Bank Debt are classified as “held to maturity” and are kept at cost in the balance sheet
4,092
7,898
Total
4,311
8,112
1) C
orporate Fixed Income Bonds are recorded at market value with realised gains and losses recorded to profit and loss. “Available for sale” investment securities are
recorded at market value with unrealised gains and losses recorded to comprehensive income. The corporate loans are recorded at cost in the balance sheet and tested
for impairment at each reporting date. The market value of the corporate loans is MSEK 115 (2013: 39) lower than cost.
2) R
efers to cash and cash equivalents in the SPEs. This cash is not available to the Company and is therefore included as restricted cash.
3) D
ebt of SPEs refers to secured notes issued by the SPEs and secured bank loans borrowed by the SPEs. These obligations are secured by pledges of the assets of the SPEs
and are not guaranteed by the Stena AB Group.
STENA AB 2014 43
GROUP
14. MARKETABLE SECURITIES
As of 31 December
MSEK
2013
2014
Opening balance
5,118
4,243
Additions
2,057
3,208
Disposals
(3,123)
(2,802)
(335)
(22)
Revaluation of financial assets through other comprehensive income
398
(97)
128
317
4,243
4,847
2013
2014
Revaluation of financial assets through the income statement
Investment at the end of year
MSEK
Marketable securities are classified as:
Financial assets at fair value through the income statement
898
1,244
Available-for-sale financial assets, valued in other comprehensive income
3,345
3,603
Total
4,243
4,847
Marketable securities refer to the Stena AB groups listed shares, funds and bonds, these are recorded at fair value.
As of 31 December 2014 shares with a book value of MSEK 352 have been pledged as security for bank debt. As of 31 December 2013, shares
with a book value of MSEK 1,015 were pledged as security for bank debt.
Marketable securities are classified as follows:
MSEK
Industrial sector
2013
2014
1,023
1,651
Banks
298
643
Funds
472
629
Retail
238
405
Oil & Gas
505
239
Pharmaceuticals
276
204
Oil & Gas Services
261
187
Software solution
122
152
Food
65
130
Shipping
87
91
Power and automation technology
13
70
Electronics
63
61
Biotechnology
62
61
Metal fabricate/hardware
50
51
Machinery
51
46
CDO/CLO
Equipment
36
Construction
81
Real estate
81
26
Telecommunication
66
25
Insurance services
22
Financial services
99
19
Energy production
77
19
53
18
Mining
Health care products
19
Infrastructure
14
Automanufactures
86
Internet
38
Media
24
Forest products/paper
21
Investment companies
14
Construction
12
Agriculture
Total listed shares
44 STENA AB 2014
29
5
4,243
4,847
15. OTHER NON-CURRENT ASSETS
MSEK
Deferred tax
assets
Other
receivables
Available for
sale shares
Deferred
costs
Total
1,048
550
1,034
373
3,005
Additions
76
651
121
74
922
Disposals
(483)
(78)
(41)
(45)
(647)
(67)
(197)
Revaluation through the income statement
Revaluation through other comprehensive income
Reclassification
(15)
(6)
(124)
(15)
135
120
(22)
(5)
(42)
1
27
17
627
1,107
1,137
Additions
257
546
Disposals
(93)
(64)
Revaluation through the income statement
284
18
Revaluation through other comprehensive income
448
Reclassification
45
335
3,206
47
409
1,259
(72)
(129)
(358)
302
448
(17)
24
78
128
86
66
358
7
852
2,473
1,216
681
5,222
Deferred tax assets mainly relate to unutilised tax losses carried forward. Reclassifications include netting against deferred tax liabilities. See Note 8.
Other receivables related to holdings of non-listed shares, other associates and bonds. Available for sale shares include investment in non-listed
shares. These shares are accounted for as Available for sale shares valued through the comprehensive income.
Available for sale shares
MSEK
No. of shares
or % held
Book value
3,345,231
40
Held by parent company
Alligator
Spibertech
2,700
11
Total available for sale shares in the Parent company
51
Held by subsidiaries
ING Dutch Office Funds C.V.
The Netherlands
6.4%
673
Airport Real Estate Basis Fonds C.V.
The Netherlands
20%
352
Iofina Convertible Loan
United Kingdom
100%
117
Other
23
Total available for sale shares
1,216
16. INVENTORIES
As of 31 December
MSEK
2013
2014
Bunker and lubricating oil
117
129
Inventories of goods for sale
228
239
Raw materials and consumables
209
232
Products in progress
29
86
Finished products
133
160
Total
716
846
STENA AB 2014 45
GROUP
17. SHORT-TERM RECEIVABLES
As of 31 December
MSEK
2013
2014
Trade debtors
Accounts receivable are classified on the basis of their due date:
Outstanding but not due
2,168
2,154
Due up to 30 days
327
407
Due more than 30 days
354
282
2,849
2,843
Total
Other current receivables
7
198
Other short-term receivables
Related parties (Note 33)
1,786
2,233
Total
1,793
2,431
Prepaid expenses
591
591
Accrued income
1,579
1,774
Total
2,170
2,365
Total short-term receivables
6,812
7,639
Book value of trade debtors corresponds to fair value. The total allowance for doubtful trade receivables was MSEK 49 as of 31 December 2014 and
MSEK 116 as of 31 December 2013. Selling expenses as of 31 December 2014 include costs for doubtful receivables of MSEK 82 and MSEK 28 as of
31 December 2013.
18. SHORT-TERM INVESTMENTS
As of 31 December
MSEK
Marketable debt and equity securities, trading
2013
2014
348
272
Restricted cash
1,346
976
Total
1,694
1,248
Book value of Short-term investments corresponds to fair value.
Restricted cash as of 31 December 2014 includes MSEK 451 of cash
Marketable debt and equity securities are classified as “Financial assets
and cash equivalents in the SPEs (see Note 13) which is not available to
at fair value through profit or loss”.
the Company. As of 31 December 2013 such restricted cash amounted
Certain marketable debt and equity securities and restricted cash
to MSEK 385. Other restricted cash represents bank accounts that have
amounting to MSEK 11 at 31 December 2014 and MSEK 118 at 31
been pledged to cover various long-term liabilities and commitments
December 2013 have been pledged as security for bank debt.
of the Company.
See Note 28.
19. CASH AND CASH EQUIVALENTS
As of 31 December
MSEK
Cash & bank
Short term deposits
Total
Short-term deposits are defined as bank deposits that have original maturities of up to three months.
46 STENA AB 2014
2013
2014
1,977
2,255
76
1,251
2,053
3,506
20. EQUITY
Dividends paid per share (SEK)
2013
3,780
2014
4,000
Specification of the reserves
MSEK
Fair value
reserve
Hedging
reserve
(141)
(927)
Revaluation
reserve
Total
(1,816)
(2,884)
1,012
1,012
Effects of changes in accounting principles1)
Change in fair value reserve, net of tax
Translation
reserve
366
366
Change in hedging reserve, net of tax
(37)
– valuation of bunker hedges
(37)
– valuation of interest hedges
916
916
– valuation of currency hedges
(34)
(34)
– hedge of net investment in foreign subsidiaries
(123)
(123)
Change in revaluation reserve, net of tax
Change in translation reserve, net of tax
Change in fair value reserve, net of tax
(20)
(20)
225
(205)
992
414
414
(1,402)
(390)
(119)
(119)
Change in hedging reserve, net of tax
– valuation of bunker hedges
(537)
(537)
– valuation of interest hedges
(951)
(951)
– valuation of currency hedges
196
196
(283)
(283)
– hedge of net investment in foreign subsidiaries
Change in revaluation reserve, net of tax
80
80
Change in translation reserve, net of tax
106
(1,780)
1,072
3,191
3,191
1,789
1,187
1) Effect of change in valuation method for ports to revaluation method
Fair value reserve
Revaluation reserve
This reserve arises on the valuation of available-for-sale financial assets.
This reserve includes revaluation of ports. The revaluation amount
When an available-for-sale asset is sold, the portion of the reserve that
consists of the fair value of the ports at the time of revaluation.
relates to that financial asset, and is effectively realised is recognised in
Concurrently with depreciations of ports the revaluation reserve is
the income statement. When an available-for-sale asset is impaired,
released with the same amount as the depreciation of the surplus
the portion of the reserve that relates to that financial asset is recog-
value from the revaluation.
nised in the income statement.
If the carrying value of the port is higher due to revaluation, the
increase in value will be accounted for in other comprehensive income.
Hedging reserve
Hedge accounting is applied on purchase of bunker fuel, interest costs,
If the carrying amount of the port is lower due to revaluation, the
decrease in value will be accounted for in the income statement.
transactions in other currency than functional currency and investments in subsidiaries.
The reserve contains gains and losses that arise from hedge revalua-
Translation reserve
Exchange differences relating to the translation from the functional
tions that is considered effective hedges. The cumulative deferred gain
currencies of the Stena Group’s foreign subsidiaries into SEK are
or loss is recognised in the income statement when the hedged trans-
accumulated to the translation reserve. Upon the sale of a foreign
action impacts the income statement.
operation, the accumulated translation amounts are recycled to the
income statement and included in the gain or loss on the disposal.
STENA AB 2014
47
GROUP
21. DEFERRED TAXES
As of 31 December
MSEK
2013
2014
4,292
4,275
181
177
Provisions
425
569
Deferred tax liabilities
Other
Total deferred tax liabilities
61
88
4,959
5,109
Deferred tax assets
277
291
2,304
2,898
101
169
Provisions
130
111
Tax loss carried forward
Other
4
7
Less deferred tax assets not recognised
(1,170)
(1,375)
Total deferred tax assets recognised
1,646
2,101
Net deferred tax liability
3,313
3,008
Whereof reported as
Deferred tax assets (Note 15)
Deferred tax liabilities
627
852
3,940
3,860
Deferred taxes have been calculated net on a country basis. Net deferred tax assets are shown as Other non-current assets.
Calculation of deferred taxes is based on local nominal tax rate.
MSEK
Taxes charged to
income statement
2013
2014
Taxes charged to
other comprehensive income
Taxes charged to
other comprehensive income
Total
taxes
Taxes charged to
income statement
Total
taxes
Current taxes
(287)
(287)
(450)
Deferred taxes
(49)
(321)
(272)
42
507
549
(238)
(321)
(559)
(408)
507
99
(450)
Gross value of tax loss carried forward:
As of 31 December
MSEK
2013
2014
Sweden
4,434
4,564
Rest of the world
6,499
7,960
10,933
12,524
Total
Out of total tax loss carried forwards as of 31 December 2014, MSEK 7,844 can be carried forward indefinitely, compared to MSEK 6,709 as of
31 December 2013. Tax loss carried forward of MSEK 4,680 expire between 2015 and 2023. Total unaccounted tax loss carried forward amounts
to MSEK 6,022 in 2014 and MSEK 5,364 in 2013.
48 STENA AB 2014
22. EMPLOYEE BENEFITS
Post-employment benefits, such as pensions, healthcare and other
provisional figures illustrating the Group´s share of the deficit at approxi-
benefits are mainly settled by means of regular payments to independ-
mately 19%. It is estimated that, after taking into account the deficit
ent authorities or bodies that assume pension obligations and adminis-
contributions that the Group has paid from 2001 to 2012, some of the
ter pensions through defined contribution plans. The remaining post-
contributions paid may be repayable, and based on the funding deficit as
employment benefits are defined benefit plans; that is, the obligations
of 31 March 2012, the Group will have no further deficit contributions to
remain within the Company. Costs and obligations at the end of a
pay over the life of the existing recovery plan. The payments made by
period for defined benefit plans are calculated based on actuarial
the Group during 2011 and 2012, amounting to MGBP 29, were paid
assumptions and measured on a discounted basis. The assumptions
into an escrow account, and cannot be used by any other member of the
include discount rate, inflation, salary growth, long-term return on
plan. The balance on the escrow account is recognised as a reduction of
plan assets, mortality rates and other factors. Discount rate assump-
the net debt. The reduction of the share to 19% has been accounted for
tions are based on long-term high quality bonds, government bond
in the Group from 2013 and the impact of reduced net debt is recog-
yield and, for Sweden, mortgage bonds at year end. The assets consist
nised in Other comprehensive income.
mainly of long-term high corporate bonds, government bonds and
Stena Line Ltd’s company scheme provides benefits which are linked
equities and the asset allocation for each pension scheme is defined in
to each members final salary at the earlier of their date of leaving or
an investment policy document. Defined benefits plans relate mainly to
retirement. The benefits provided by the two industry schemes are
subsidiaries in the UK operations. Other large-scale defined benefit
linked to each members career average salary according to a career
plans apply for salaried employees in Sweden (mainly through the
index system. All schemes are closed to new members.
Swedish PRI pension plan) and employees in The Netherlands.
Expenses included in the income from operations include current
The funding position of each scheme is reassessed every three years
and a schedule of contributions is put in place, following consultation
year service costs, past service costs, net interest income or expense
with the employers, which sets out the regular contributions payable
and gains and losses on settlements. Expenses are recognised as other
along with any deficit contributions required to meet any shortfall of
operating expenses or administrative expenses, depending on the
the assets when compared with the liabilities. The trustee determines
function of the employee. Remeasurement effects are recognised in
the investment strategy which is subject to consultation with the
Other comprehensive income.
employers. The assets of all schemes are managed on behalf of the
Some features of the main defined benefit plans are described
below.
trustee by independent fund managers.
The operation of each scheme is governed by a Trust Deed and
Rules and the schemes are managed through a trustee company, the
United Kingdom
boards of which are composed of representatives of the employers and
Stena Line Holding Group’s pension schemes cover around 90% of
the members and, in some cases, independent trustees.
the Groups total defined benefit obligation in the UK. Stena Line Ltd
participates in one company-funded defined benefit pension scheme
Sweden
and two industry wide defined benefit schemes, Merchant Navy
The main defined benefit plan in Sweden is the collectively agreed
Ratings Pension Fund (MNRPF) and Merchant Navy Officers Pension
pension plan for white collar employees, ITP 2 plan assured in Alecta.
Fund (MNOPF). The Group estimates its share in MNRPF to 19% (19%
According to an interpretation from the Swedish Financial Reporting
in 2013) and in MNOPF to 12% (12% in 2013), based on information
Board, this is a multiemployer defined-benefit plan. For fiscal year
from the trustees.
2014, the Group did not have access to information from Alecta that
In 2001, the trustee of the MNRPF adopted a deficit repair scheme
would have enabled this plan to be recognised as a defined-benefit
and under this scheme the Group’s share of the deficit contributions was
plan. Accordingly, the plan has been recognised as a defined-
around 32% with half of the contributions payable by other employers
contribution plan. The premium for the defined benefit plan is
who were making voluntary contributions. However the agreement with
individually calculated and is mainly based on salary, accrued pension
the voluntary employers expired 2006, and as a result the Group’s share
and expected remaining period of service.
of the deficit contributions increased to around 60%. The Group initi-
According to Alecta’s consolidation policy for defined-benefit pen-
ated court proceedings against the trustee of the MNRPF to establish
sion insurance, the collective consolidation level is normally allowed to
how the deficit in the MNRPF should be allocated between the v arious
vary between 125% and 155%. If Alecta’s collective consolidation level
employers. The Court of Appeal upheld in 2011, the decision made by
is below 125% or higher than 155% measures must be taken to create
High Court, that deficit contributions can be required from all employers
opportunities for the consolidation level to return to an accepted level.
who have ever participated in the MNRPF, including companies that no
If the consolidation level falls short or exceeds the normal interval one
longer employ any members. As a result of the Court of Appeals deci-
measure may be to increase the contract price for new subscription and
sion, the non-contributing employers can also be required to contribute
expanding existing benefits or introduce premium reductions. Alecta’s
funds to reduce the deficit. The t rustee of the MNRPF has proposed
consolidation ratio amounts to 143% for 2014 and 148% for 2013.
STENA AB 2014 49
GROUP
CONT. NOTE 22
Other defined benefit pension plans in Sweden are mainly funded
The Netherlands
by pension foundations. There is no lowest funding requirement.
The defined benefit pension plan in Netherlands is an indexed average
Benefits are paid directly by the Group and not from the foundation
salary benefit pension plan and is open for new entrants. The plan is
assets.
fully funded.
Information per country as of 31 December 2013
Sweden
United Kingdom
The Netherlands
Total
Reporting in the balance sheet
Present value of funded and unfunded obligations
469
7,763
237
8,468
Fair value of plan assets
(270)
(7,463)
(260)
(7,992)
Total (surplus)/deficit
199
300
(23)
476
Whereof reported as
Pension liabilities
Total funding level for all pension plans, %
89
47
24
160
288
347
1
636
58%
96%
110%
94%
8
36
6
50
Amounts included in the income statement
Current service cost
Past service cost
Net interest cost
Administration cost
9
26
2
2
(1)
35
1
30
Remeasurements (gain)/loss
(74)
(477)
(5)
(556)
30
Total expense (gain) for defined benefits
(57)
(385)
2
(439)
Major assumptions for the valuation of the liability
Life expectancy, year
Male – currently aged 65
19.6
21.0
22.1
Female – currently aged 65
22.8
23.4
24.3
Inflation, %1)
2.0
3.2
2.0
Discount rate, %
4.0
4.7
3.5
Average duration of the obligation is 14.5 years.
1) Inflation for UK concerns RPI. Used CPI is 1.0 lower than RPI
50 STENA AB 2014
Information per country as of 31 December 2014
Sweden
United Kingdom
The Netherlands
Total
Reporting in the balance sheet
Present value of funded and unfunded obligations
538
9,682
251
10,471
Fair value of plan assets
(282)
(9,431)
(276)
(9,989)
Total (surplus)/deficit
256
251
(25)
482
Whereof reported as
Pension liabilities
Total funding level for all pension plans, %
75
62
26
163
331
313
1
645
52%
97%
110%
95%
7
39
Amounts included in the income statement
Past service cost
Net interest cost
8
Administration costs
46
49
49
22
30
52
52
Remeasurements (gain)/loss
50
74
124
Total expense (gain) for defined benefits
65
236
301
Major assumptions for the valuation of the liability
Life expectancy, year
Male – currently aged 65
20.7
20.7
22.1
Female – currently aged 65
23.2
23.3
24.3
Inflation, %1)
1.3
3.0
2.0
Discount rate, %
3.0
3.8
3.5
Average duration of the obligation is 17 years.
1) Inflation for UK concerns RPI. Used CPI is 1.3 lower than RPI
Reconciliation of change in present value of defined benefit obligation
for funded and unfunded obligations
Opening balance, 1 January
2013
2014
9,265
8,468
Purchase of company
42
50
46
2
49
Past service cost
Administration cost
30
52
362
396
Remeasurement arising from changes in financial assumptions
211
830
Remeasurement arising from changes in demographic assumptions
(45)
(19)
(281)
(201)
(1,007)
23
Interest expenses
Remeasurement from experience
Remeasurement from changed share in pension plan
Contributions by plan participants
Benefits paid
Closing balance as of 31 December
6
5
(248)
(335)
81
1,157
8,468
10,471
STENA AB 2014
51
GROUP
CONT. NOTE 22
Reconciliation of change in the fair value of plan assets
Opening balance, 1 January
2013
2014
8,112
7,992
Purchase of company
31
Interest income
327
366
Remeasurement arising from changes in assumptions
(34)
485
Remeasurement from changed share in pension plan
(533)
23
Contributions by plan participants
Employer contributions
Benefits paid
5
195
218
(182)
(205)
70
1,105
7,992
9,989
Closing balance as of 31 December
6
Below is the sensitivity analysis for the main financial assumptions and
change in an assumption while holding all other assumptions constant.
the potential impact of the present value of the defined pension obli-
In practice, this is unlikely to occur, and changes in some of the
gation. The sensitivity analysis is not meant to express any view by
assumptions may be correlated.
Stena of the probability of a change. The analyses are based on a
Sensitivity analysis on defined benefit obligation
Sweden
United Kingdom
The Netherlands
Total
320
Longevity +1 year
16
298
6
Inflation +0.5%
47
483
25
555
Discount rate +0.5%
(49)
(668)
(21)
(738)
Discount rate –0.5%
59
668
24
751
2013
Market value of plan assets by category
2014
Quoted
Non-quoted
Total
Equity
2,445
113
Bonds
4,261
Property
285
Qualifying insurance
38
Total
Quoted
Non-quoted
2,558
3,193
168
4,261
4,739
285
38
40
Total
3,361
4,739
570
570
40
543
306
849
763
516
1,279
7,287
704
7,992
8,735
1,254
9,989
Investment strategy and risk management
Through the defined benefit pension plans, the group is exposed to a
number of risks.
The plan liabilities are calculated using a discount rate. If plan assets
underperform this yield, this will create a deficit. The Group manages
the allocation and investment of pension plan assets with the aim of
with Stena.
Increased longevity and inflation are the principle risks that may
increase the future pension payments and, hence, increase the p
ension
decreasing total pension cost over time. This means that certain risks
obligation. The Group monitors continuously discount rate, inflation
are accepted in order to increase the return. The investment horizon is
and mortality assumptions to ensure that the plan assets match the
long-term and the allocation ensures that the investment portfolios are
obligations.
well diversified.
52 STENA AB 2014
The group management approves the limits for asset allocation. The
final investment decisions are taken by the local trustee that consults
23. BANK DEBT
2013
MSEK
Current
Property loans
Other loans
2014
Total
Current
Non-current
Total
843
11,835
12,678
558
12,180
12,738
3,442
21,857
25,299
2,091
24,931
27,022
331
11,595
11,926
349
6,179
6,528
4,616
45,287
49,902
2,998
43,290
46,288
Revolving credit facilities
Total
Non-current
Schedule for repayment of bank debt is presented in Note 30, Financial risk factors and financial risk management.
The carrying amounts of the group’s borrowings are denominated in the following currencies
As of 31 december
MSEK
SEK
2013
2014
14,265
13,924
GBP
1,135
1,146
USD
23,715
22,356
EUR
10,115
8,862
Other currencies
673
Total
49,903
46,288
Regarding assets pledged, see Note 28.
24. SENIOR NOTES
In February 2007, a Eurobond totalling MEUR 300 was issued at a rate
amortisation profile and repay amounts under existing credit facilities.
of interest of 6.125% and with a term extending through to 1 February
In February 2014, a further 10-year bond totalling MUSD 350 was
2017. In February 2007, a further Eurobond totalling MEUR 102 was
issued at a rate of interest of 5.750%. The units Stena DrillMAX and
issued at a rate of interest of 5.875% and with a term running through
Stena Carron have been furnished as collateral for this bond. The pur-
to 1 February 2019.
pose of this transaction was to extend the existing amortisation profile
In March 2010, a Eurobond totalling MEUR 200 was issued at a rate
and free up further liquidity. As a result of the transactions in spring
of interest of 7.875% and with a term running through to 15 March
2014, the scope in the existing RCF (Revolving Credit Facility) of MUSD
2020.
1,000 was reduced to MUSD 600.
In January 2014, a 10-year bond totalling MUSD 600 was issued at a
The fair value of the bond loans as at 31 December 2014 was MSEK
rate of interest of 7.000% and with a term running up to and including
12,896 (2013: 5,849). For details of the current financial and operative
1 February 2024. The purpose of the transaction is to extend our
covenants linked to the bond loans, see Note 30.
Fair value
as of 31 December
Issued Maturity
Nominal
Outstanding
2007–2017
MEUR 300
MEUR 300
6.125%
2007–2019
MEUR 102
MEUR 102
5.875%
2010–2020
MEUR 200
MEUR 200
7.875%
MEUR 228
2014–2024
MUSD 600
MUSD 600
7.000%
MUSD 551
2014–2024
MUSD 350
MUSD 350
5.750%
MUSD 320
Total
Interest
2013
Carrying amount (MSEK)
as of 31 December
2014
2013
2014
MEUR 324
MEUR 314
2,657
2,831
MEUR 109
MEUR 108
903
962
MEUR 225
1,764
1,888
4,682
2,730
5,324
13,093
5,324
13,093
Whereof
Long-term Senior Notes
Short-term Senior Notes
STENA AB 2014 53
GROUP
25. LEASES
Rental expense for operating leases were as follows:
Company as lessee
The operating lease obligations include chartering of crude oil tankers
on a timecharter basis, chartering of ferries principally on a bareboat
basis, as well as obligations related to rentals of properties and ports.
MSEK
Rental expense
2013
2014
1,263
1,312
The financial leases of the Group comprises of one RoPax-vessel. The cost for vessels subject to financial leasing contracts was as of 31 December
2014 MSEK 547 and as of 31 December 2013 MSEK 530. Net carrying value was MSEK 457 for 2014 and MSEK 484 for 2013.
As of 31 December 2013 the future minimum lease commitments under non-cancellable operating leases and capital leases were
as follows:
2013
MSEK
Operating leases
Capital leases
2014
1,096
231
2015
713
179
2016
531
70
2017
470
370
372
10
2018
2019 and thereafter
1,911
13
Total minimum lease commitments
5,093
873
As of 31 December 2014 the future minimum lease commitments under non-cancellable operating leases and capital leases were
as follows:
2014
MSEK
Operating leases
Capital leases
2015
831
233
2016
645
122
2017
593
409
2018
565
20
2019
545
1
2020 and thereafter
1,362
1
Total minimum lease commitments
4,541
786
Company as lessor
The Company leases vessels and properties to third parties under operating leases. Net book value for vessels and properties for external rental as of
31 December were as follows:
2013
MSEK
2014
Cost
Accumulated
depreciation
Net book
value
(12,682)
Vessels
42,402
Real estate
27,831
Total
70,233
(12,682)
Cost
Accumulated
depreciation
29,720
42,717
(13,967)
27,831
29,367
57,551
72,084
Net book
value
28,750
29,367
(13,967)
58,117
As of 31 December 2013 the future minimum rentals to be received under non-cancellable operating leases were as follows:
2013
MSEK
Vessels
Total
2014
8,787
722
9,509
2015
7,774
583
8,357
2016
4,732
462
5,194
2017
962
323
1,285
2018
217
217
2019 and thereafter
575
575
2,882
25,137
Total minimum lease rentals
54 STENA AB 2014
Real estate
22,255
As of 31 December 2014 the future minimum rentals to be received under non-cancellable operating leases were as follows:
2014
MSEK
Vessels
Real estate
Total
7,430
2015
6,701
729
2016
5,586
590
6,176
2017
1,534
427
1,961
2018
38
293
331
2019
38
192
230
2020 and thereafter
Total minimum lease rentals
14
523
537
13,911
2,754
16,665
The information for real estate relates to office buildings and excludes residential properties since most residential leases have at most a three month
period term of notice.
26. OTHER NON-CURRENT LIABILITIES
As of 31 December
MSEK
2013
2014
1)
Prepaid income
113
1,261
Other liabilities2)
609
2,685
Total
722
3,946
Repayment of non-current liabilities is required according to the following schedule:
MSEK
Prepaid income1)
1–3 years
4–5 years
More than
5 years
Total
1,222
10
29
1,261
Other liabilities2)
1,684
351
650
2,685
Total
2,906
361
679
3,946
1) O
n 21 November 2014 Statoil cancelled the three-year charter agreement for the drilling vessel Stena Carron. Stena has received compensation of MUSD 276 for the
remaining period of the contract (2.5 years) which explains the big difference between 2013 and 2014 on prepaid income.
2) Other non-current liabilities have primarily increased due to a higher negative value regarding bunker contracts and interest rate swaps.
27. ACCRUED COSTS AND PREPAID INCOME
As of 31 December
MSEK
2013
2014
Charter hire/running costs
165
140
Interest costs
490
731
Accrued personnel costs
363
365
Accrued costs
Other accrued costs
1,462
1,484
2,480
2,720
Prepaid income
Prepaid charter hire1)
Other prepaid income
Total accrued costs and prepaid income
43
931
733
795
776
1,726
3,256
4,446
1) O
n 21 November 2014 Statoil cancelled the three-year charter agreement for the drilling vessel Stena Carron. Stena has received compensation of MUSD 276 for the
remaining period of the contract (2.5 years) which explains the big difference between 2013 and 2014 on prepaid income.
STENA AB 2014 55
GROUP
28. PLEDGED ASSETS, COMMITMENTS AND CONTINGENT LIABILITIES
Pledged assets
Pledged assets represent assets securing various financings. These assets can only be used by the party benefitting from
the pledge if there is an event of default under the respective financing documents or the appropriate remedy period has elapsed.
The following assets have been pledged as securities for bank debt
As of 31 December
MSEK
2013
2014
Shares in subsidiaries
6,134
571
Mortgages on vessels
34,198
35,150
Mortgages on properties
15,944
13,026
Chattel mortgages
1,994
1,934
Investment in affiliated companies
1,028
1,029
1,015
352
Trade debtors
386
430
Short term investments
118
11
Reservation of title
52
Assets pledged, other
Total assets pledged for normal bank debt
Investment in SPEs
975
1,360
61,844
53,863
4,311
8,112
Total assets pledged for bank debt
66,155
61,975
Long-term and short-term debt and capitalised lease obligations
50,776
47,073
Debt in SPEs
Total debt and capitalised lease obligations
3,944
7,540
54,720
54,613
In addition, certain insurance agreements have been pledged.
Commitments
Guarantee obligations mainly relate to guarantees for property loans,
As of 31 December 2014 two IMOIIMAX vessels and one drilling
vessel projects in associated companies and warranty obligations for
rig were ordered. The total contract amount is MSEK 6,139, whereof
delivered equipment.
MSEK 1,791 has been paid in advance.
Future minimum lease commitments relating to operating leases of
vessels, ports etc amount to MSEK 831 for 2015 and MSEK 3,710 from
In addition to the information above there are also on-going tax
issues with tax authorities.
2016. See Note 25.
Contingent liabilities
As of 31 December
MSEK
Guarantees
Other contingent liabilities
Total
56 STENA AB 2014
2013
2014
2,830
2,382
471
50
3,301
2,432
29. CONSOLIDATED STATEMENTS OF CASH FLOWS
In 2014 two acquisitions were completed. In Adactum the Mediatec
broadcasting business. The acquisition were made to increase the
Group has acquired the company Filmworks Oy. Furthermore has Stena
market shares in Finland and the rest of the Nordic countries. The
Investment Lux SARL acquired Lane Energy. The most significant acquisi-
headquarter for the company is located in Helsingfors, Finland and
tion are described below.
the company has 25 employees. The company has after the acquisition
change name to Mediatec Broadcast Finland Oy. The purchase price
Filmworks Oy
was MSEK 43 and the difference of MSEK 27 between the purchase
On 14 September, 2014 MPP Mediatec Broadcast Holding AB, the par-
price and the adjusted fair value of acquired net asset is classified as
ent company of the business area Broadcast within Mediatec, acquired
goodwill and customer contracts included in other intangible assets.
100% of the shares in Filmworks Oy which operates in the outside
The total value of the acquired assets and liabilities is presented in the below table which also presents the acquisation’s effect on the Groups’ cash
flow. All acquired assets and liabilities were reported according to IFRS, at the time of the acquisition.
MSEK
2014
Assets and liabilities acquired:
Intangible assets
8
73
Current receivables
24
Loans
(54)
Current liabilities
(30)
Acquired net assets
21
Goodwill
22
Customer contracts
5
Purchase price
(48)
Deferred purchase price
21
Cash and cash equivalents in the acquired businesses
Effect on the Group’s cash and cash equivalents
(27)
Total expenses related to acquisitions amounts to MSEK 2 and are reported as direct operating expenses.
Interest payments
Year ended 31 December
MSEK
Interest, paid
Interest, received
2013
2014
2,468
2,642
489
475
Paid tax
Cash paid for taxes in 2014 was MSEK 344, as compared to MSEK 124 in 2013.
Financing activities
Other financing activities include finance costs amounting to MSEK 499, mainly related to the new senior loans and other loans. The finance costs
are c apitalised and amortised over the period of the contract. In 2013 other financing activities includes repayment of share capital amounting to
MSEK 27 to the minority in the SPEs.
STENA AB 2014 57
GROUP
30. FINANCIAL RISK FACTORS AND FINANCIAL RISK MANAGEMENT
This note describes the financial risk management in the Stena Group.
As part of its tanker operations the Group also uses, to a limited
Accounting principles for financial instruments are described in Note 1
extent, contracts for freight rates and forward freight agreements.
and the financial information for the year 2014 and 2013 are described
Financial risk management is carried out within the scope of the
in Note 31. Other notes that include information used in Note 30 and
Group’s financial policies and manuals mainly by the treasury unit
31 is Note 13 Investments in SPEs, Note 14 Marketable securities, Note
in Sweden.
15 Other noncurrent assets and Note 18 Short-term investments.
Financial instruments in the Stena Group consist of bank loans,
Market risk – Interest rate risks
derivatives, finance lease contracts, accounts payable, accounts
The Group holds fixed assets mainly in ships and real estate in USD,
receivable, bonds, shares and participations as well as cash and
SEK, EUR and GBP and as a consequence the debt portfolio and the
short-term investments.
accompanying interest rate risks are distributed by the same currencies.
The primary risk deriving from trading of financial instruments are
In order to manage this risk and to achieve desired interest rate levels
market risks including interest-rate risk, currency risk and price risk,
the Company’s management makes regular assessments of the interest
Credit risk and Liquidity risk. All of these risks are handled in accord-
rate risks. This exposure is adjusted with interest rate derivatives which
ance with an established financial policy.
to the largest possible extent are matched against the maturity profiles
of the underlying debt.
Financial risk factors
Financial instruments for interest rates, such as futures, swaps or
The Group’s activities expose it to a variety of financial risks. The
different types of interest rate options, are used to hedge future inter-
Group’s overall risk management policy focuses on the unpredictability
est rate payments. Interest income or interest expenses under these
of the financial markets and aims to minimise potential adverse effects
contracts are allocated to specific periods and reported as an adjust-
on the Group’s financial results.
ment of the interest expense on the underlying liability. The Group
The Group employs derivative instruments to hedge exposure to
certain risks.
Risk management is handled by a central finance department, Stena
reports accrued interest at the end of the accounting period, calculated
in accordance with the conditions in the contracts. Generally, the
underlying liabilities have a longer duration than the financial hedging
Finance, in accordance with policies determined by the Board of
contracts and allocation of accrued interest over a period of time is
Directors. Stena Finance identifies, evaluates and hedges financial risks
carried out as long as the hedging contracts are considered to form an
in close co-operation with the Group’s operating units. The Board of
effective portion of the Group’s overall risk management.
Directors prepares written policies for both overall risk management
and for risk management of specific areas such as currency risk, inter-
Market risk – Currency risks
est rate risk, credit risk, the utilisation of derivative and non-derivative
The Group is exposed to the risk of fluctuations in foreign currency
financial instruments and the investment of excess liquidity.
exchange rates due to the international nature and scope of its opera-
The Group uses financial instruments to reduce the risk of major
tions. A substantial portion of the Group’s revenues and expenses are
adverse effect on its results from price changes in currency, interest
denominated in USD, but also in GBP and EUR. The Group’s foreign
rates and oil markets.
currency risk arises from:
As a basic principle fixed assets are financed with long-term funding
in the form of issued bonds, bank debt and leasing liabilities. Each
subsidiary’s assets are financed in local currency and to the extent that
assets and liabilities in foreign currency cannot be matched, the net
exposure is hedged with financial derivative contracts.
To achieve a desired currency mix and interest fixing profile the
– the Group’s investment in foreign subsidiaries’ net assets (equity
exposure)
– certain financial assets and liabilities (translation exposure when
converting such balances to each company’s functional currency) and
– fluctuations in exchange rates on the value of the Group’s sales and
purchases in foreign currencies (transaction exposure).
Group uses various types of interest rate derivatives such as fixed rate
swaps and cross currency interest rate swaps. Interest rate options are
The Group’s policy is to hedge its translation exposure which mainly
also used either to cap or to lock in a range of the interest rate level.
arises from USD and EUR borrowing in companies with SEK as their
Currency risks also arise when converting foreign currency denomi-
functional currency. The Group also hedges parts of its transaction
nated Income Statement or Balance Sheet items to SEK and when
exposure in USD, GBP, EUR, CAD, PLN, NOK, AUD and DKK from
converting cash flows in foreign currency. These risks are reduced by
future cash flows from its ferry operations and offshore drilling
hedging with forward foreign exchange contracts or with currency
operations. In the ferry operation sale mainly relates to CAD, EUR, PLN,
options.
NOK and DKK and purchase to USD. In the offshore drilling operation
Fluctuations in the price of bunker fuel, which predominantly affects
purchase mainly relates to GBP and AUD.
Ferry operations, are managed by fixed price agreements with the
supplier for the various grades of bunker fuels or by using financial
Translation differences from net investments
derivatives for crude oil.
Translation differences from the exposure of net assets in foreign subsidiaries are reported directly in the Group’s equity. Derivative instru-
58 STENA AB 2014
ments attributable to this exposure, such as currency swaps, currency
volume of about 2.9 million barrels crude oil. A part of this is hedged
forward agreements or currency option contracts, are valued at fair
on a consecutive basis. All contracts are settled monthly at a volume
value. These hedge contracts are valued and reported directly against
corresponding to the underlying consumption.
comprehensive income if the hedges are considered to be effective. If
hedges are no longer considered to be effective the translation differ-
Equity price risk
ence are recognised in the finance net.
The majority of all equity holdings within Short-term investments and
The interest rate differential is reported as interest income or interest expenses in the Group’s net financial income.
The book value of our net assets of subsidiaries denominated in a
Marketable securities are traded at an active market at an exchange,
hence no illiquidity, counterparty risk or other uncertainty discounts
have been applied. A total risk limit for investment and trading in
foreign currency, as of 31 December 2014, was approximately SEK
equities, equity indices and bonds has been approved by the Board of
30.4 billion. The net assets are expressed mainly in Swedish kronor,
Directors and the utilisations of the limits is monitored on a daily basis.
U.S. dollars, Euro and British pounds. A 1% change in the value of the
The risk mandate are allocated per trader/portfolio, reflecting a 10%
SEK against each of the functional currencies of our subsidiaries would
overnight adverse price movement. As a complement to the price risk
affect our shareholders’ equity as of 31 December 2014 by MSEK 304.
measurement, specific risk, sector risks and geographic risks are followed up and reported. A certain share of the total financial invest-
Translation differences from translation exposure
ments should be made in liquid securities. The Finance policy also
Monetary assets and liabilities in foreign currency are translated at the
governs what type of financial instruments that are approved. In order
closing rate of exchange. Derivative instruments attributable to the
to reduce the credit risk when investing in corporate bonds, there are
financial hedging of the value of these balance sheet items, such as
certain approved limits for credit rating of the issuer.
currency swaps, currency forward agreements or currency option con-
Our portfolio of equities is well diversified, both in terms of markets
tracts, are valued at fair value, which includes translation at the closing
and industries. Investments are made within the boundaries of our
rate of exchange, while changes in fair value are reported gross as
finance policy in terms of risk- and loss limits. As of 31 December 2014,
exchange rate differences in the Group’s net financial income, where
a change of +/–10% in the unrealised value of all our equity holdings
the translation of monetary assets and liabilities is also reported. Inter-
within Short-term investments and Marketable securities, would have
est rate differential from currency swaps or forward agreements are
an effect of +/–MSEK 152 on profit before tax and +/–MSEK 360 recog-
reported as interest income or interest expenses in the Group’s net
nised in other comprehensive income less deduction of deferred tax.
financial income. According to the Group’s finance policy, 100% of
such exposure should be hedged.
Trading activities
The Company also buys and sells certain types of derivative financial
Translation differences from transaction exposure
instruments with the objective of generating profits on a short-term
Realised results from currency forward agreements or currency option
basis. All trading positions are taken within the limits of the Company’s
contracts, including paid or received premiums from option contracts,
financial trading policy. All positions are recorded at fair value and the
which are intended to hedge expected or contracted future cash flows
unrealised gains and losses are part of the result of the period.
in foreign currency, are allocated to a particular period and reported as
an adjustment of the underlying transaction when it takes place. The
Credit risks
hedge contracts are valued and reported directly against comprehen-
In our operating activities, credit risks occur in the form of receivables
sive income if an effective hedge. According to the Group’s finance
on customers. In our Ferry operations, credit checks are regularly made
policy, 0–100% of such exposure should be hedged.
on our customers using well known credit-rating agencies. If the credit
worthiness of the customer is not satisfactory according to the credit
Market risk – Price risk
policy, payment in cash is required. In our Offshore Drilling operations,
Oil price risk
our customers have generally high credit ratings. Our RoRo vessels are
The Group is exposed to the price of bunker fuel used for the opera-
typically chartered out on a time or bareboat charter. Although such
tion of its vessels and uses forward contracts, swaps and options to
charterhire is paid in advance and we have the contractual right to
hedge its oil price risk. Hedge contracts are regularly entered into to
withdraw the vessel and cancel the charter contract if payment is not
match the underlying costs of deliveries of bunker fuel. The hedge
received within a certain time, before entering into a charter agree-
contracts are valued and reported directly against comprehensive
ment the credit worthiness of the charterer is investigated using well
income if an effective hedge. The results of these contracts are allo-
known credit-rating agencies. If the credit worthiness is not satisfac-
cated to specific periods and matched against underlying exposure.
tory a guarantee is required from the charterer, e.g. in the form of a
The contracts are settled on a monthly basis and reported as an
bank guarantee.
adjustment of the cost for bunker fuel for the current period.
For the current route, ferry operations have an annual consumption of
marine bunker fuel and gas oil which combined converts to an annual
In our tanker operations where a spot charter arrangement is made,
the charterer is scrutinised before the contract is signed in accordance
with our QA system rules. If the charterer is not considered “first class”
STENA AB 2014 59
GROUP
CONT. NOTE 30
or has certain remarks on his payment possibility, chartering of the
Property loans consists principally of bank mortgage loans on real
vessel can either be denied, or the charterer can be offered to provide
estate, buildings and land in the Company’s real estate business seg-
a bank guarantee, or to pay the freight before discharge of the cargo
ment. These loans are denominated in SEK and EUR, respectively.
(called BBB). In a period charter arrangement the charterhire is paid in
Other loans consist of long term bank loans used to finance the acqui-
advance. If the charterhire is not paid within a certain time we have the
sition of vessels and other assets. They are denominated in USD, GBP,
right to withdraw the vessel and cancel the charter contract. Regarding
EUR and SEK, respectively.
buy and sell arrangements of vessels the procedures are dictated by
Since December 2004 the Company has a Revolving Credit Facility
the buy/sale contract (MOA) where a vessel is not released to a buyer
of MUSD 1,000. The facility was renegotiated in September 2012 and
until the full payment has been received into sellers’ bank account.
carries a maturity of 5.5 years was used to refinance the “old” facility
In our Property operations, both residential and commercial tenants
dated 8 December 2004. Obligations under the facility are secured
make the rental payments in advance. Nevertheless, a credit check is
mainly by mortgages on certain vessels. Borrowings under the facility
always made on new tenants, residential as well as commercial, and
bear interest at a rate based on LIBOR plus an applicable margin based
commercial tenants are put on regular “credit-watch” throughout the
on the utilisation of the facility. The facility imposes certain covenants
rental period. If the potential tenant does not fulfill the criteria set out
regarding levels of working capital, cash and cash equivalents and
in our finance policy, the tenant can either be denied a rental contract
interest coverage ratio. In connection with our capital market activities
or be asked to make additional pre-payment or provide a bank guaran-
the available facility amount under the existing RCF (Revolving Credit
tee (commercial tenants).
Facility) of MUSD 1,000 was reduced to MUSD 600.
All financial instruments are entered into with counterparties who
As of 31 December 2014, MUSD 190 was utilised under our MUSD
are considered to be creditworthy institutions and terms and condi-
600 revolving credit facility of which MUSD 5 was used for issuing
tions are documented. In the normal course of business, none of the
bank guarantees and letters of credit. As of 31 December 2013, the
parties demand collateral for credit exposure from financial instru-
utilised portion of the facility was MUSD 631 of which MUSD 625 was
ments. All financial derivatives are traded within the framework of
actually drawn and MUSD 6 used for bank guarantees.
established ISDA agreements, where positive and negative market
Since 2007, the Company has an additional Revolving Credit Facility
values are netted. In the tables below credit risk refers to net positive
of MUSD 200. This facility was renegotiated during 2013 and the credit
market values per counterparty.
line increased from MUSD 200 to MUSD 300. The utilised portion of
the facility as of 31 December 2014, was MUSD 169. As of 31 Decem-
Liquidity risks
Liquidity risk is managed by maintaining an adequate level of cash,
ber 2013, the utilised portion of the facility was MUSD 146.
Since 2010, the Company has an additional Revolving Credit
cash equivalents and available financing through unutilised committed
Facilities of MSEK 6,660 with S venska Handelsbanken and Nordea
credit facilities and the possibility to sell short term marketable hold-
guaranteed by EKN. As of 31 December 2014, the utilised portion
ings in equities and bonds. Due to the dynamic character of the busi-
of the facility was MSEK 2,584. As of 31 December 2013 the utilised
ness, the need for financing flexibility is satisfied by arranging part of
portion of the facility was MSEK 6,436.
the company’s funding in the form of committed Revolving Credit
As of 31 December 2014 the Company had a total of MSEK 10,027
Facilities, under which short term requirements for liquidity can be
in unutilised, mainly uncommitted, overdraft facilities and other similar
met.
lines of credit, as compared to MSEK 5,551 as of 31 December 2013
The management regularly monitors the company’s liquidity
including unutilised portions of Revolving Credit Facilities.
reserves, based on anticipated cash flows. This is carried out on both
“Not specified” includes borrowings and utilised credit lines that
operational company level and centrally at the treasury department in
have formal repayment dates in 2014. These loans have been classified
line with best practice and the limits set up for on a group wide basis.
as long-term because it is the intention of the Company to refinance
Furthermore, it is the policy of the group to calculate future cash flows
these loans on a long-term basis. “Not specified” also includes the
in all major currencies and quantify the liquidity needed to meet those
utilised portion of the Revolving Credit Facilities.
cash flows, to monitor balance sheet liquidity ratios in relation to both
The revolving credit facility imposes various financial and operating
internal and external minimum levels and to maintain plans for debt
covenants. The principal financial covenants (i) require us to maintain
financing.
current assets and committed undrawn facilities in an amount greater
The table below shows the group’s financial debts, sorted by the
than or equal to 125% of consolidated current liabilities, (ii) require us
remaining years until the agreed maturity date. The figures shown in
and our subsidiaries to maintain minimum cash and cash equivalents of
the table are based on agreed confirmations and constitute undis-
not less than MUSD 100, (iii) require our net debt to be no greater than
counted cash flows. Cash flows in foreign currency is converted to SEK
65% of the capitalisation, and (iv) require us to maintain ownership of
by using the closing exchange rates.
the security parties that, at the date of execution of the credit facility
agreement, are members of the Stena AB group.
60 STENA AB 2014
The following table summarises the notional volume and credit risks of financial derivative instruments:
As of 31 December 2013
MSEK
Currency forward contracts and swaps
Credit risk
Nominal
amount
Credit risk
26,857
54
53,997
278
77
1
123
34,642
87
45,097
Currency options
Interest rate forward contracts and swaps
Interest rate options
3,871
Commodity fixed price swaps and options – oil
Total
As of 31 December 2014, MSEK
Total
2015
Nominal
amount
2,026
143
6,720
67,473
285
109,867
2016
2017–2019
2020–
Property loans
12,738
558
497
1,444
10,239
Other bankloans
27,022
2,091
2,329
9,016
13,586
Revolving Credit Facility
Other credit facilities
Senior Notes
804
5,724
455
13,093
3,794
9,299
233
122
430
1
831
645
1,703
1,362
2,140
2,140
Derivatives
3,780
1,017
931
765
1,067
70,628
7,219
4,524
17,152
35,554
Total
Not specified
349
786
Operational leasing debt
495
5,724
4,541
Financial leasing debt
217
3,930
6,179
STENA AB 2014
61
GROUP
31. FINANCIAL INSTRUMENTS
This note describes the financial outcome from financial instruments in the Stena Group. Accounting principles for financial instruments are
described in Note 1 and financial risk management is described in Note 30.
Financial instruments per category
Financial instruments
measured at fair value
through profit or loss
MSEK
Fair
value
option
Held for
trading1)
Financial instruments
Used for
hedge
accounting
Held to
maturity
Total
carrying
value
Total
fair
value
3,345
4,243
4,243
1,137
1,137
1,137
2,849
2,849
2,849
1,346
1,694
1,694
4,311
4,272
Available Loans and
for sale receivables
Other
financial
liabilities
Assets
898
Other noncurrent assets
Trade debtors
348
Investments in SPEs
Other receivables
Total
898
80
667
428
667
4,092
219
4,092
4,701
4,195
747
747
14,981
14,942
Liabilities
5,324
5,324
5,850
Other Long-term interest bearing
debt
Senior notes
45,929
45,929
45,929
Short-term interest bearing debt
4,847
4,847
4,847
1,722
1,722
1,722
Debt in SPEs
3,944
3,944
3,944
1,211
1,211
61,766
62,977
63,503
3,603
4,847
4,847
1,216
2,364
2,364
2,843
2,843
2,843
976
1,248
1,248
8,112
7,997
Other liabilities
216
995
Total
216
995
Assets
1,244
1,148
Trade debtors
272
Investments in SPEs
7,898
Other receivables
Total
1,244
195
473
467
1,621
7,898
214
5,033
3,819
668
668
20,082
19,967
13,093
12,896
2,653
2,653
Liabilities
Senior notes
13,093
Other non-current liabilities
2,653
Other Long-term interest bearing
debt
43,843
43,843
43,843
Short-term interest bearing debt
3,231
3,231
3,231
2,140
2,140
2,140
Debt in SPEs
7,540
7,540
7,540
1,126
1,126
69,847
73,626
73,429
Other liabilities
229
897
Total
229
3,550
1) H
eld for trading inludes exchange contracts for hedging translation and transaction exposure, but not included in hedge accounting, reported in other liabilities,
MSEK 63 and MSEK (35) in 2013 and interest rate contracts for hedging interest, but not included in hedge accounting, reported in other liabilities, MSEK (135)
in 2014 and MSEK (101) in 2013.
62 STENA AB 2014
Financial instruments at fair value
Financial instruments in level 2 consist of foreign exchange contrats
For short term assets and liabilities in Loans and receivables and Other
and interest rate swaps entered for trading or hedging purpose. The
financial liabilities we assume the carrying value and fair value to be
valuation of interest rate swaps are made using discounted cash flows
the same. For senior notes the fair value is based on quoted prices and
based on forward interest rates in observable yeild curves. Level 2 also
for other long term liabilities we assume that the fair value would not
consists of financial assets available for sale and the fair value is
materially differ from the carrying value.
received from external party. Regarding debt investments in level 2 the
fair value is determined by the nominal amount as long as the under
For the rest of the Groups’s financial instruments (excluding invest-
lying value of the loan has not materially been changed.
ments in SPEs, please see not 13) the table below shows the fair value
Investments in level 3 consist of equity securities and debt invest-
in different levels as of 31 December 2013 and 2014, respectively.
ments. For equity securities we calculate the value based on estimated
The different levels indicate to what extent market values have been
discounted cash-flows. Fair value is determined by hypothetical deter-
used when calculating the fair value.
mine what the market price would have been if there would have been
Investments in level 1 consist of equity shares and fixed income classified as held for trading, fair value option or financial assets available
a market for these instruments. For debt investments we estimate the
for sale. The financial instruments are traded on an active market and
value based on the nominal amount taking into consideration the
the fair value is determined on the basis of the asset’s listed current
credit risk of the loan.
bid-rate on the balance sheet date.
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Financial assets at fair value through profit or loss
– Trading derivatives
– Trading securities
1,226
Derivatives used for hedging
80
80
21
1,247
667
667
195
195
1,516
1,516
1,620
1,620
Available-for-sale financial assets
– Equity securities
1,617
842
1,041
3,500
1,612
1,060
1,173
804
81
96
981
529
402
43
974
3,647
1,691
1,137
6,475
3,657
3,277
1,216
8,150
– Debt investments
Total assets
3,845
Liabilities
Financial liabilities at fair value through profit or loss
– Trading derivatives
216
216
229
229
Derivatives used for hedging
995
995
3,550
3,550
1,211
1,211
3,779
3,779
Total liabilities
Specification of financial instruments in Level 3
MSEK
Opening balance 1 January 2013
Equity security
Real Estate Fund 1
Equity security
Real Estate Fund 2
Equity
security Other
Debt investment
Convertible loan
694
231
109
1,034
(44)
(44)
47
69
Total
Total unrealised gains/losses
– recognised in profit or loss
– recognised in other comperhensive income
Impairment Recognised in profit or loss
(87)
(21)
– whereof realised result
135
(87)
Proceeds from acquisitions and sales, net
Closing balance 31 December 2013
19
101
80
(23)
(23)
21
9
(6)
(5)
19
675
309
57
96
1,137
STENA AB 2014 63
GROUP
CONT. NOTE 31
MSEK
Equity security
Real Estate Fund 1
Equity security
Real Estate Fund 2
Equity
security Other
Debt investment
Convertible loan
Total
675
309
57
96
1,137
13
(10)
15
18
(58)
32
1
(25)
Opening balance 1 January 2014
Total unrealised gains/losses
– recognised in profit or loss
– recognised in other comperhensive income
Impairment Recognised in profit or loss
Proceeds from acquisitions and sales, net
– whereof realised result
Closing balance 31 December 2014
43
21
1
21
86
673
352
74
117
1,216
There where no transfers between Level 1–3 during 2014.
The table below shows information about the fair value measurements of level 3
Fair value at 31
December 2014
Valuation
techniques
Relationship of
Range of unobservaUnobservable ble inputs (probability unobservable inputs
weighted average)
to fair value
inputs
Sensitivity
analyses
Funds
Description
Real Estate
Fund 1
The fund invests
in prime office
real estate only
in the Netherlands, and
consist of 23
properties
MSEK 673
Estimated
discounted
cash flows
Future
development
of the occupancy rates
The vacancy rate is
inserted in the range
of 2.2%–8.1%
(weighted average of
7.0%)
The change in the
properties occupancy rates lead to
a lower/higher fair
value
If the vacancy
rated is changed
with +/– 10% the
effect on the fair
value will be
MSEK +/– 14
Real Estate
Fund 2
The fund consists MSEK 352
of 16 properties
(offices and
warehouses)
located on
Schiphol Airport
grounds in the
Netherlands
Estimated
discounted
cash flows
Future
development
of the occupancy rates
The vacancy rate is
inserted in the range
of 5.9%–9.8%
(weighted average of
7.1%)
The change in the
properties occupancy rates lead to
a lower/higher fair
value
If the vacancy
rated is changed
with +/– 10% the
effect on the fair
value will be
MSEK +/– 2
Convertible
loan
Long term loan
Estimated
discounted
cash flows
Interest level
and credit
risk
Market interest rate in The change in interaverage 6.0%
est rate or credit risk
lead to a lower/
higher fair value
MSEK 117
If the interest rate
including credit
risk is changed
with +/– 100
points the effect
on the fair value
will be MSEK
+/– 1
As of 31 December 2014 a change of +/– 10% in the unrealised value of all our assets in the Level 3 category, would have an effect of +/– MSEK 19
(as of 31 December 2013 +/– MSEK 15) on profit before tax and +/– MSEK 103 (as of 31 December 2013 +/– MSEK 99) recognised in other comprehensive income.
The table below shows the financial derivatives that are included in ISDA agreements and subject for netting
MSEK
Derivative financial assets
64 STENA AB 2014
Financial assets/
liabilities, gross
Netted
balances
Amounts shown
in balance sheet
Financial instruments included in
ISDA agreements but not netted
Financial
instruments, net
1,815
1,815
1,554
261
Derivative financial liabilities
(3,779)
(3,779)
(1,554)
(2,225)
Totalt
(1,964)
(1,964)
(1,964)
Fair value
The table below summarises the fair value of balance sheet items
sheet. To determine the market values for the Corporate Fixed Income
in the case where the fair value differs from the carrying value.
Bonds the company uses generally accepted public market pricing
sources.
The investment in SPEs are classified as follows:
The fair value of Senior notes has been calculated by using prices
Corporate Fixed Income Bond are classified as “available for sale”
from Bloomberg.
and are revalued in other comprehensive income. Senior Bank Debt are
classified as “held to maturity” and are kept at cost in the balance
2013
MSEK
2014
Carrying value
Fair value
Carrying value
Fair value
4,311
4,272
8,112
7,997
5,324
5,850
13,093
12,896
Carrying amount
Notional amount
Assets
Investments in SPEs
Liabilities
Senior notes
Interest rate hedge contracts
Outstanding interest rate contracts for hedging of the interest rate exposure
2013
MSEK
Notional amount
2014
Carrying amount
Contracts excluding SPE
Interest rate swaps floating to fixed
– receivable position
12,143
467
7,241
335
– payable position
22,389
(872)
37,837
(1,639)
1,000
(16)
1,000
(41)
2,000
(91)
2,000
(111)
(512)
49,008
Interest rate caps
633
641
Interest rate collar
Contracts SPE
Interest rate swaps floating to fixed
Interest rate swaps fixed to floating
Total
Whereof the fair value of the instruments used in the hedge account-
238
38,403
289
(1,456)
Stena has chosen to apply hedge accounting for parts of the Senior
ing, excluding CDO/CLOs, amounts to (1,642) as of 31 December 2014
Notes issued in Q1 2014 at a fixed interest rate. Fair value of the out-
and MSEK (411) as of 31 December 2013 and is included in other cur-
standing hedge instruments amounts to 320. The carrying value of the
rent liabilities against the hedge reserve.
loan related to hedge accounting amounts to (318). The changes in the
The SPEs are investing in different debt securities, see Note 13, and to
reduce the potential negative effects on the actual values of these enti-
fair value of the outstanding hedge instruments and the changes in the
carrying value of the loans are reported in the income statement.
ties, interest rate contracts have been entered into at an amount equal
to that of the underlying fixed rate bonds.
STENA AB 2014 65
GROUP
CONT. NOTE 31
Currency hedge contracts
The following two tables summarise the contractual net amounts of the Company’s forward exchange and option contracts to hedge the translation
and transaction exposures. Notional amount is gross amount.
Outstanding currency hedge contracts for translation and equity exposure
2013
MSEK
Notional amount
2014
Carrying amount
Notional amount
Carrying amount
Currency forward contracts
170
3
44
274
(5)
45
Currency swap contracts
10,028
87
11,283
185
11,455
(135)
19,220
(332)
Total
21,927
(50)
30,592
(147)
Whereof the fair value of the instruments used in hedge accounting for equity exposure , amounts to MSEK (216) and MSEK (25) as of 31 December
2014 and 2013, respectively, and is included in other current liabilities (other current assets) against the hedge reserve.
Outstanding currency hedge contracts for transaction exposure
2013
MSEK
Notional amount
2014
Carrying amount
Notional amount
Carrying amount
Currency forward contracts
323
13
773
47
696
(9)
820
(26)
Currency swap contracts
1,368
42
7,979
660
1,846
(83)
7,449
(466)
Total
4,233
(37)
17,021
215
Whereof the fair value of the instruments used in hedge accounting for transaction exposure, amounts to MSEK 222 and MSEK (27) as of 31
December 2014 and 2013, respectively, and is included in other current liabilities (other current assets) against the hedge reserve.
66 STENA AB 2014
The table below shows the hedging contracts divided by currency. Notional amount is net amount.
Hedge accounting contracts for transaction exposure
2013
MSEK
Notional amount
2014
Carrying amount
Notional amount
Carrying amount
SEK companies
USD
656
(4)
481
94
EUR
(434)
(6)
(401)
(10)
NOK
(111)
1
(85)
3
DKK
(11)
GBP
494
PLN
(42)
QUR
Other
125
2
11
29
4
1
USD companies
GBP
607
851
(40)
NOK
54
144
(22)
AUD
63
86
(5)
CAD
24
(1)
EUR
142
(8)
EUR companies
USD
476
(19)
487
115
CAD
(266)
31
(145)
1
489
65
222
SEK
22
GBP companies
EUR
450
(35)
USD
(27)
(6)
DKK companies
USD
Total
45
(2)
1,660
(27)
2,518
Notional amount
Carrying amount
Notional amount
2,026
135
2,003
448
3,794
(1,001)
Oil price contracts – Outstanding hedge contracts for transaction exposure
2013
MSEK
2014
Carrying amount
Raw material swap contracts
Raw material option
368
103
555
(164)
6,720
(614)
Totalt
2,026
135
The fair value of the instruments used in hedge accounting for bunker fuel exposure , amounts to MSEK (553) as of 31 December 2014 and MSEK
135 as of 31 December 2013 and is included in other current assets against the hedge reserve. The company has during 2014 closed part of its
outstanding bunker hedge positions by way of a counter transaction with the same counterparty as the initial contract was made. Hence, the net
positions in notional volume of fixed price swaps are MSEK 1,203 and the net outstanding notional volume of option contracts are MSEK 174.
Trading contracts – Outstanding derivative contracts for trading activities
2013
MSEK
Foreign exchange spot and forwards
Currency options1)
Notional amount
2014
Carrying amount
Notional amount
Carrying amount
697
6,384
38
77
123
Interest rate instruments
123
19
Total
897
6,526
38
1) The notional amount is deltaadjusted
STENA AB 2014 67
GROUP
32. PERSONNEL
Average number of employees :
2013
2014
No. of
females
Total
30
17
33
19
Subsidiaries in Sweden
4,440
1,779
4,539
1,812
Total Sweden
4,473
1,796
4,575
1,831
Total
No. of
females
Parent Company:
Board, CEO, Executive vice president
Other employees
3
3
Subsidiaries outside of Sweden
Great Britain
2,441
587
2,191
539
Denmark
833
345
823
307
The Netherlands
698
111
710
101
Germany
358
141
323
123
27
Singapore
157
71
130
South Korea
137
19
124
11
Spain
128
14
122
13
Norway
135
37
120
24
India
94
43
104
43
17
China
93
14
97
United Arab Emirates
74
4
62
4
Poland
44
32
47
33
Latvia
25
18
43
31
United States
24
8
30
8
Thailand
19
3
22
8
Ireland
21
15
19
13
Switzerland
16
7
17
7
France
10
1
15
3
Saudi Arabia
4
Finland
Portugal
Russia
15
1
14
2
10
1
10
1
9
8
10
9
Luxembourg
8
4
9
5
Lithuania
8
6
8
6
Australia
11
1
Brazil
Other
Shipborne employees
Total outside of Sweden
Total Group
8
29
1,481
6
4
8
21
6
1,560
11
6,875
1,498
6,656
1,353
11,348
3,294
11,231
3,184
Shipborne employees refers to drilling and shipping activities, which are performed world wide. For Ferry operations, such persons have been
allocated by country. The total number of shipborne employees in Ferry operations in 2014 was 3,660 as compared to 3,790 in 2013.
68 STENA AB 2014
Total personnel costs
2013
2014
Parent
Company
Subsidiaries
Wages, salaries and other remuneration
48
Pension costs
11
Other social charges
Total
MSEK
Total
Parent
Company
Subsidiaries
Total
5,048
5,096
52
5,187
5,239
421
432
13
420
433
18
614
632
19
620
639
77
6,083
6,160
84
6,227
6,311
For Swedish-flagged vessels employed in international shipping activi-
the Executive Vice President and the board members in 2014 (a total of
ties, the Company has received a subsidy equal to all social security
seven persons) and MSEK 42 in 2013.
costs and income taxes payable by the employers on behalf of employ-
The Chief Executive Officer has additional retirement conditions
ees who work on board such vessels. The amount of this subsidy in
allowing pension payments from 70 years of age. The obligation is pro-
2014 was MSEK 384, out of which MSEK 351 related to the ferry oper-
vided for within pension liabilities. The period of notice from either
ations. In 2013, the amount of the subsidy was MSEK 378, out of
parties is 12 months. Severance pay amounts to a maximum of 24
which MSEK 345 related to the ferry operations. The amounts received
months salary. The board members of Stena AB were paid KSEK 325 in
have reduced personnel costs.
2014, out of which KSEK 50 was paid to the Chairman of the Board
and KSEK 25 was paid to the Chief Executive Officer. In 2013, the
Remuneration of Chief Executives
board members of Stena AB were paid KSEK 300, out of which KSEK
Salaries of MSEK 13 were paid to the Chief Executive Officer and the
50 was paid to the Chairman of the Board and KSEK 25 was paid to
Executive Vice President in 2014 and MSEK 12 in 2013. The corre-
the Chief Executive Officer.
sponding pension charges amounted to MSEK 7 in 2014 and MSEK 7
in 2013. The aggregate compensation paid by the Stena AB to its
directors (a total of nine persons, CEO included) amounted to MSEK 8
The Chairman of the Board has in addition invoiced KSEK 3,046 and
KSEK 2,781 for consultations for the years 2014 and 2013 respectively.
In the Board of Directors, 78% are men (80% in 2013) and 22%
in 2014 and MSEK 8 in 2013. Of total salaries paid to other employees
women (20% in 2013). 78% of other senior executives are men and
MSEK 48 were paid to other officers than the Chief Executive Officer,
22% are women. In 2013 88% were men and 12% were women.
STENA AB 2014 69
GROUP
33. RELATED PARTY TRANSACTIONS
We have entered into various transactions with other companies in the
Sessan for its 50% participation in the shuttle tanker Stena Spirit,
Stena Sphere, which includes the companies wholly owned by the Sten
which is chartered pursuant to a 15-year contract to Petrobras in Brazil.
Allan Olsson family, Stena AB (publ), Stena Sessan AB (”Sessan”) och
We earned total fees for these services of MSEK 1.3 in 2013 and MSEK
Stena Metall AB and their respective subsidiaries. Another significant
1.3 in 2014.
company within the Stena Sphere is Concordia Maritime AB (”Concor-
In December 2002, we sold the remaining 50% of the RoPax vessel
dia”) which is 52% owned by Sessan. Shares in Concordia are listed on
Stena Jutlandica to Sessan who acquired the first 50% of this vessel
NASDAQ Stockholm. The significant transactions between the Com-
from us in 1996. The vessel is chartered back under an operating lease,
pany and its affiliates are described below. All transactions have been
for which we paid charterhire of MSEK 59 in each of the years 2013
made at arm’s length.
and 2014, respectively.
Concordia
Stena Metall
Concordia and the Company (indirectly through Stena Bulk AB, a
We purchase a substantial part of our bunker fuel from Stena Metall.
wholly owned subsidiary of the Company) are parties to an allocation
Such purchases aggregated MSEK 1,753 and MSEK 2,084 in 2013 and
agreement (the “Allocation Agreement”) pursuant to which Concordia
2014, respectively.
may elect to participate 100%, 50% or not to participate in business
opportunities identified by Stena Bulk relating to the chartering of
crude oil tankers. The net outcome of the agreement, including results
of forward contracts, was in 2014 and 2013 SEK 0, respectively.
We provide management and other services to Stena Metall. We
received MSEK 11 in 2014 and MSEK 1 in 2013 for these services.
Stena Renewable AB has lended money to Örbacken Energi HB and
Möckelsjö Energi HB amounting to MSEK 20 and MSEK 15 respectively.
We provide certain services to Concordia such as administration,
Stena Renewable will continue to give management services to the
marketing, commercial management, insurance and technical support
companies and the annual fee were MSEK 2,6 in each of the years
for Concordia’s owned and chartered vessels, including administration
2013 and 2014, respectively.
of jointly chartered vessels, offices and office services for Concordia’s
personnel and certain financial and other services. We earned fees for
Olsson Family
these services of MSEK 38 in 2013 and MSEK 13 in 2014.
We rent office space from members of the Olsson family. In each of
the years 2013 and 2014, we paid MSEK 40 and MSEK 38, respectively,
Sessan
in respect of such properties.
Since June 1999, we have served as the business manager of Sessan
We manage certain properties owned by members of the Olsson
for its 50% participation in a Norwegian partnership that owns the
family. In the years 2013 and 2014, members of the Olsson family paid
shuttle tanker Stena Sirita, which is chartered on a two-year charter
us MSEK 17 and MSEK 19, respectively, for such management services.
until the autumn 2015, with an option to prolong the charter with an
additional year. In 2003, we also became the business manager of
We have agreed to pay Dan Sten Olsson an annual indexed retirement benefit for life.
34. SUBSEQUENT EVENTS
On 9 January 2015, the Stena AB Group and Scandlines entered into
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 is operated jointly by
the Stena AB Group and Scandlines, each with a 50% shareholding.
First State European Diversified Infrastructure Fund, FCP-SIF, will take
over the service from the end of January 2015. The sale includes the
five vessels used to operate the service. The sale means that the Stena
AB Group will report a capital gain of approximately MSEK 1,600,
which will be credited to the Group during the first quarter of 2015.
In January 2015, an agreement was signed regarding the sale of
Stena Feronia for MEUR 23. The vessel will be delivered at the turn of
the month March/April.
In February 2015, Marine Atlantic exercised its purchase option for
70 STENA AB 2014
In February, a property was sold in London for MGBP 19.
The newly constructed IMOIIMAX-vessel Stena Impression was
delivered in February 2015 from the Samsung Shipyard in South Korea.
In February 2015, the vessel Stena Calypso was sold via a hire purchase agreement for MUSD 9,6.
The service between Holyhead and Dun Laoghaire was discontinued
in February 2015.
In March 2015, properties in Gothenburg were sold for MSEK 925.
In the end of March 2015, Stena Adactum signed an agreement to
sell the Mediatec companies. The buyer is the company NEP that works
in the same line of business. The transaction is planned to take place
during May 2015.
In February 2015, the High Court in London approved the new
funding regime for MNRPF and the plan for deficit contributions. This
the vessels Highlanders and Blue Puttees for MEUR 69 each with deliv-
means that the Group’s share of deficit is settled to 19% and contribu-
ery in December 2015 and February 2016.
tions made since 2001 are set off by future deficit.
Parent Company
INCOME STATEMENTS
MSEK
Note
2013
2014
Revenues
1
136
136
Administration expenses
2
(199)
(204)
Other operational income
32
(270)
(31)
(338)
(42)
1,672
Result from shares in Group companies
3
Result from securities and receivables accounted for as tangible fixed assets
4
Other interest income and similar profit/loss items
5
237
168
Interest expense and similar profit/loss items
6
(810)
(2,278)
Finance net
Group contribution
7
Income before tax
Taxes
Net income
8
1,165
(615)
727
679
545
33
934
(10)
48
23
982
STENA AB 2014
71
PARENT COMPANY
Parent Company
BALANCE SHEETS
As of 31 December
MSEK
Note
2013
2014
Shares in Group companies
9
15,801
16,648
Long-term receivables, Group companies
9
8,497
8,727
10
342
274
10
459
567
Total financial fixed assets
25,099
26,216
Total non-current assets
25,099
26,216
820
1,394
Assets
Current assets
Short-term receivables, Group companies
Other receivables
20
7
54
68
894
1,469
894
1,469
25,993
27,685
Share capital, 50,000 shares, SEK 100 each
5
5
Statutory reserve
2
2
Total restricted equity
7
7
12,699
12,502
11
Total short-term receivables
Total current assets
Total assets
Shareholders’ equity and liabilities
Shareholders’ equity
Retained earnings
Net income
23
982
Total unrestricted equity
12,722
13,484
Total shareholders’ equity
12,729
13,491
Non-current liabilities
Long-term debt
12
5,331
10,362
Senior Notes
13
6,436
2,585
Pensions and other non-current liabilities
Total non-current liabilities
12
3
11,779
12,950
Current liabilities
Current liabilities, Group companies
14
Total current liabilities
Total shareholders´ equity and liabilities
72 STENA AB 2014
Pledged assets
15
Commitments and contingent liabilities
15
9
10
1,262
660
40
271
174
303
1,485
1,244
25,993
27,685
20,597
18,932
Parent Company
STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
MSEK
Share Capital
Statutory
reserves
Retained earnings and net
income
Total
5
2
12,888
12,895
(189)
(189)
Equity as of 31 December 2012
Dividend
Net Income
5
2
Dividend
Net Income
5
2
23
23
12,722
12,729
(220)
(220)
982
982
13,484
13,491
Parent Company
STATEMENTS OF CASH-FLOW
MSEK
Note
2013
2014
23
982
Net cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Unrealised result on financial instruments
238
251
Unrealised foreign exchange (gains)/losses
155
1,172
Group contributions
Other non cash items
Cash flow from operations before changes in working capital
8
10
(48)
(679)
(545)
6
(123)
(247)
1,689
2,300
(1,030)
Changes in working capital
Receivables within Group companies
Other receivables
Net cash provided by/used in operating activities
(21)
22
18
(12)
2,050
669
(423)
(848)
Net cash flows from investing activities
Proceeds from sale of securities and long-term receivables, net
Increase of long-term receivables, Group companies
(1,105)
(230)
Net cash provided by/used in investing activities
(1,528)
(1,078)
Dividend
(189)
(220)
Group contributions received/paid, net
(760)
679
New borrowings
1,265
3,859
Principal payments on debt
(838)
(3,851)
(522)
409
0
0
Cash and cash equivalents at beginning of year
0
0
Cash and cash equivalents at end of year
0
0
Net cash flows from financing activities
Other financing activities
(58)
STENA AB 2014 73
PARENT COMPANY
Parent Company
NOTES
All amounts in MSEK. Accounting principles, see Note 1 in the C
onsolidated Notes.
1. REVENUES
The revenues in the parent company refer to services made for Group Companies. For 2014 the revenues were MSEK 136, whereof 98% from Group
Companies. For 2013 the revenues were MSEK 136, whereof 88% from Group Companies.
2. ADMINISTRATION EXPENSES
Fees to the auditors
MSEK
Audit services
2013
2014
5
5
Audit related fees
1
Tax services
1
2
Total
6
8
Audit fees relate to examination of the annual report, financial
services required by enactment, articles of association, regulations or
accounting and the administration by the Board and the President as
agreement. Tax services include both tax consultancy and tax compli-
well as other tasks related to the duties of a company auditor. The
ance services.
audit operation includes, except the audit, other quality assurance
3. RESULT FROM SHARES IN GROUP COMPANIES
A dividend was received from Stena International S.A. amounting to MSEK 916. Anticipated dividend of MSEK 249 from Stena Adactum
has been booked.
4. R ESULT FROM SECURITIES AND RECEIVABLES ACCOUNTED
FOR AS TANGIBLE FIXED ASSETS
MSEK
2013
Unrealised result from financial instruments
(132)
(43)
(27)
1,303
2014
Interest income
117
412
Total
(42)
1,672
Of the total interest income MSEK 412 came from Group Companies. In 2013, MSEK 117 came from Group Companies.
5. OTHER INTEREST INCOME AND SIMILAR PROFIT/LOSS ITEMS
MSEK
Intercompany interest income
Interest income from derivatives
Total
74 STENA AB 2014
2013
2014
170
116
67
52
237
168
6. INTEREST EXPENSE AND SIMILAR PROFIT/LOSS ITEMS
MSEK
2013
2014
Interest expense
(641)
(855)
Unrealised change in value of short-term derivatives
(157)
(364)
(5)
(1,043)
Amortisation of deferred financing costs
(6)
(15)
Other financial expenses
(1)
(1)
(810)
(2,278)
Total
Of the total interest expenses MSEK (247) came from Group Companies. In 2013 MSEK (144) came from Group Companies.
7. GROUP CONTRIBUTION
The company has in 2014 received Group contributions amounting to MSEK 545 from Grytsjö Energi AB, a company within the Stena Adactum
group. The company has in 2013 received Group contributions amounting to MSEK 779 from AB Stena Finans and given MSEK 100 to Stena Line
Scandinavia AB.
8. INCOME TAXES
MSEK
Income before tax
2013
2014
33
934
Deferred tax
(10)
48
Total taxes
(10)
48
Statutory income tax rate
(7)
(205)
Expenses not deductible
(3)
The reconciliation of the difference between the statutory tax rate
in Sweden and the effective tax rate are set forth below
(4)
Non taxable income, received dividend
256
Non taxable income
Tax income/tax expense
1
(10)
48
Tax paid is shown in Note 29 in the Consolidated Notes.
STENA AB 2014 75
PARENT COMPANY
9. SHARES IN GROUP COMPANIES
As of 31 December
MSEK
Reg.ID
Share,
%
Located in
Amount of
shares in
000’s
Booked value
2013
Booked value
2014
590
Stena Rederi AB
556057-8360
Göteborg
100
25
590
AB Stena Finans
556244-5766
Göteborg
100
500
550
550
Stena Fastigheter AB
556057-3619
Göteborg
100
119
2,935
2,982
Stena Adactum AB
556627-8155
2,664
Stena International S.A.
Göteborg
100
500
1,864
Luxembourg
100
4,768
9,862
9,862
15,801
16,648
Total shares in Group companies
Stena AB has paid MSEK 800 to Stena Adactum AB and MSEK 47 to Stena Fastigheter AB as share holders c ontribution.
The subsidiaries´ share of larger
The Parent company has the following long-term receivables
Group companies
on Group companies
Ownership
Located in
%
As of 31 December, 2014
Booked value
MSEK
Stena Bulk AB
Göteborg
100
Stena Rederi AB
862
Stena Line Scandinavia AB
Göteborg
100
AB Stena Finans
7,265
Stena Line Holding BV
The Netherlands
100
Stena Adactum AB
Stena Holland BV
The Netherlands
100
Stena Line Ltd
The United Kingdom
100
Total long-term receivables
Group companies
8,727
Stena Drilling (Holdings) Ltd
The United Kingdom
100
Stena North Sea Ltd
The United Kingdom
100
Opening balance
8,497
Stena Ropax Ltd
The United Kingdom
100
Stena Switzerland AG
Switzerland
100
Stena Maritime AG
Switzerland
100
600
New receivables
3,926
Change in receivables
(4,603)
907
Closing balance
8,727
A complete list of the companies in the Group has been delivered to the Swedish companies registration office. For information of associated companies
and joint ventures see Note 6 “Participations in associated companies, joint ventures and other collaborative arrangements” in Consolidated Notes.
10. OTHER FINANCIAL FIXED ASSETS
MSEK
Opening balance
342
Additions
Disposals
(14)
Revaluation
(59)
5
274
Marketable securities regard long-term holdings of listed shares (see Note 14 in the Consolidated Notes).
Other long-term assets
MSEK
Opening balance
Additions
Deferred tax
receivables
Other long-term
receivables
Other long-term
securities
422
11
23
3
459
11
51
109
(10)
(18)
44
567
47
Valuation to fair value
17
Disposal
Capitalised
costs
(8)
469
3
51
Total
17
Other long-term securities relate to holding non-listed shares (see Note 15 in the Consolidated Notes). Capitalised costs consist of costs for issuing
bonds. These costs are allocated to the loans remaining duration (see Note 6 in the Consolidated Notes).
76 STENA AB 2014
11. PREPAID EXPENSES AND ACCRUED INCOME
As of 31 December
MSEK
2013
2014
Prepaid expenses
10
7
Accrued income
44
61
Total
54
68
12. OTHER LONG-TERM DEBT
The amount is regarding the utilisation of credit facility. For information about the credit facility guaranteed by Svenska Exportkreditnämnden
(see Note 23 in the Consolidated Notes).
13. SENIOR NOTES
For information about the Senior Notes (see Note 24 in the Consolidated Notes).
14. ACCRUED COSTS AND PREPAID INCOME
As of 31 December
MSEK
Accrued interest expense
Accrued vacation salaries and social security debt
Other accrued expenses
Deferred income
Total
2013
2014
147
291
12
11
3
1
12
174
303
15. PLEDGED ASSETS, COMMITMENTS AND CONTINGENCIES
As of 31 December
MSEK
Guarantees, subsidiaries
Guarantees, other
Total
2013
2014
20,161
18,417
436
515
20,597
18,932
16. PERSONNEL
For more information about employees, salaries, other remunerations and social securities for employees (see Note 32 in the Consolidated Notes).
STENA AB 2014
77
PARENT COMPANY
PROPOSED TREATMENT OF
UNAPPROPRIATED EARNINGS
The following funds in the Parent company are available to the Annual General Meeting (SEK thousand)
Retained earnings
12,502,530
Net income
981,620
Unrestricted equity
13,484,150
The Board of Directors propose the following:
A dividend to the shareholders
225,000
A dividend to Sten A Olssons Foundation for Culture and Science and other public good
purposes as a gift according to the Companies Act Chapter 17 Paragraph 5
19,000
To be carried forward
13,240,150
Total
13,484,150
Göteborg, 17 April 2015
Lennart Jeansson
Dan Sten Olsson
Gunnar Brock
Chairman of the Board
Managing Director
Board member
Anne-Marie Pouteaux
Christian Caspar
Maria Brunell Livfors
Board member
Board member
Board member
Lars Westerberg
Jörgen Lorén
Board memberEmployee representative
Mahmoud Sifaf
Employee representative
Our Audit Report has been released on 17 April 2015
78 STENA AB 2014
Peter Clemedtson
Johan Rippe
Authorised Public Accountant
Authorised Public Accountant
AUDITOR’S REPORT
To the annual meeting of the shareholders of Stena AB (publ), corporate identity number 556001-0802
Report on the annual accounts and consolidated accounts
financial position of the group as of 31 December 2014 and of their
We have audited the annual accounts and consolidated accounts of
financial performance and cash flows for the year then ended in
Stena AB for the year 2014.
accordance with International Financial Reporting Standards, as
adopted by the EU, and the Annual Accounts Act. The statutory
Responsibilities of the Board of Directors and the Managing
administration report is consistent with the other parts of the annual
Director for the annual accounts and consolidated accounts
accounts and consolidated accounts.
The Board of Directors and the Managing Director are responsible for
We therefore recommend that the annual meeting of shareholders
the preparation and fair presentation of these annual accounts in
adopt the income statement and balance sheet for the parent com-
accordance with the Annual Accounts Act and of the consolidated
pany and the group.
accounts in accordance with International Financial Reporting Standards, as adopted by the EU, and the Annual Accounts Act, and for such
Report on other legal and regulatory requirements
internal control as the Board of Directors and the Managing Director
In addition to our audit of the annual accounts and consolidated
determine is necessary to enable the preparation of annual accounts
accounts, we have also audited the proposed appropriations of the
and consolidated accounts that are free from material misstatement,
company’s profit or loss and the administration of the Board of
whether due to fraud or error.
Directors and the Managing Director of Stena AB for the year 2014.
Auditor’s responsibility
Responsibilities of the Board of Directors and
Our responsibility is to express an opinion on these annual accounts and
the Managing Director
consolidated accounts based on our audit. We conducted our audit in
The Board of Directors is responsible for the proposal for appropria-
accordance with International Standards on Auditing and generally
tions of the company’s profit or loss, and the Board of Directors and
accepted auditing standards in Sweden. Those standards require that
the Managing Director are responsible for administration under the
we comply with ethical requirements and plan and perform the audit to
Companies Act.
obtain reasonable assurance about whether the annual accounts and
Auditor’s responsibility
consolidated accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
Our responsibility is to express an opinion with reasonable assurance
about the amounts and disclosures in the annual accounts and consoli-
on the proposed appropriations of the company’s profit or loss and on
dated accounts. The procedures selected depend on the auditor’s
the administration based on our audit. We conducted the audit in
judgement, including the assessment of the risks of material misstate-
accordance with generally accepted auditing standards in Sweden.
ment of the annual accounts and consolidated accounts, whether due
As a basis for our opinion on the Board of Directors’ proposed
to fraud or error. In making those risk assessments, the auditor consid-
appropriations of the company’s profit or loss, we examined the Board
ers internal control relevant to the company’s preparation and fair
of Directors’ reasoned statement and a selection of supporting evi-
presentation of the annual accounts and consolidated accounts in
dence in order to be able to assess whether the proposal is in accord-
order to design audit procedures that are appropriate in the circum-
ance with the Companies Act.
stances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes
As a basis for our opinion concerning discharge from liability, in
addition to our audit of the annual accounts and consolidated
evaluating the appropriateness of accounting policies used and the
accounts, we examined significant decisions, actions taken and circum-
reasonableness of accounting estimates made by the Board of
stances of the company in order to determine whether any member of
Directors and the Managing Director, as well as evaluating the overall
the Board of Directors or the Managing Director is liable to the com-
presentation of the annual accounts and consolidated accounts.
pany. We also examined whether any member of the Board of Direc-
We believe that the audit evidence we have obtained is sufficient
tors or the Managing Director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles
and appropriate to provide a basis for our audit opinions
of Association.
Opinions
We believe that the audit evidence we have obtained is sufficient
In our opinion, the annual accounts have been prepared in accordance
and appropriate to provide a basis for our opinions.
with the Annual Accounts Act and present fairly, in all material
respects, the financial position of the parent company as of 31 Decem-
Opinions
ber 2014 and of its financial performance and its cash flows for the
We recommend to the annual meeting of shareholders that the profit be
year then ended in accordance with the Annual Accounts Act. The
appropriated in accordance with the proposal in the statutory adminis-
consolidated accounts have been prepared in accordance with the
tration report and that the members of the Board of Directors and the
Annual Accounts Act and present fairly, in all material respects, the
Managing Director be discharged from liability for the financial year.
Göteborg, 17 April 2015
Peter Clemedtson
Johan Rippe
Auktoriserad revisor
Auktoriserad revisor
STENA AB 2014 79
GROUP
FIVE-YEAR SUMMARY
MSEK
Revenues
2011
2012
2013
2014
27,150
27,968
27,388
30,240
33,563
EBITDA excluding sale of assets
7,073
6,512
7,060
7,947
9,646
3,558
4,578
3,401
3,887
4,865
131
60
18
(51)
(5)
2,680
2,779
1,777
2,148
2,799
Share of affiliated companies’ results
Income before taxes
Vessels
28,753
34,185
40,708
40,956
46,141
24,148
25,753
26,658
27,831
29,367
Other noncurrent assets
37,070
29,842
27,494
26,412
28,150
Cash and cash equivalents/short-term investments
5,792
4,255
3,676
3,747
4,754
Other current assets
6,403
6,909
7,446
7,528
8,485
33,505
34,645
34,479
39,214
42,838
2,580
2,332
1,994
1,356
1,335
52,176
52,382
56,939
55,919
68,422
6,677
9,237
11,488
11,723
13,222
94,938
98,596
104,900
108,212
125,817
Shareholders’ equity including deferred income taxes
Other provisions
Other noncurrent liabilities
Current liabilities
Total assets
Cash flow from operations
Net cash used in investing activities
Number of employees, average
Number of vessels1)
1) Including owned and chartered in vessels
80 STENA AB 2014
2010
5,065
4,895
5,034
5,017
9,598
(9,681)
(5,579)
(11,553)
(4,583)
(8,313)
5,151
559
6,489
(19)
35
482
(78)
(6)
472
1,453
9,847
10,242
10,565
11,348
11,231
91
106
117
137
151
The Financial Report, the Annual Review and the Sustainability Report are available online at www.stena.com.
Printed reports are provided by [email protected].
Solberg.
Photos and images: Katja Andersson, Dan Ljungsvik, Peter
Mild, Per-Anders Hurtigh, Johan Palmborg med flera.
Printing: Falk Graphic.
N
L
ECOLA
DIC
BE
OR
3041 0165
PRINTED MATTER
Care
Innovation
Performance
Stena AB (publ)
SE-405 19 Göteborg, Sweden
Telephone +46 31 85 50 00
www.stena.com

stena ab financial report 2014

Transcription

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