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STENA AB
ANNUAL REVIEW
2014
2
CONTENTS
THIS IS STENA 2014 AT A GLANCE
FLAP
1
CEO COMMENTS
2
SHIPPING AND FERRY OPERATIONS
6
SUSTAINABILITY8
STENA AB
STENA LINE 10
STENA DRILLING 14
STENA BULK 18
STENA RORO 22
NORTHERN MARINE GROUP
24
CASE MARITIME TRAINING CENTERS
26
STENA TEKNIK 28
CASE IMOIIMAX
30
STENA PROPERTY
32
CASE RELATIONSHIP MANAGEMENT
36
STENA ADACTUM 38
CASE WIND POWER
42
STENA FINANCE
44
VESSELS46
PROPERTIES51
STENA SPHERE
STENA SPHERE
52
CONCORDIA MARITIME 54
STENA METALL 56
STENA SESSAN
58
STENA AB BOARD
60
SPHERE ADVISORY BOARD
61
COORDINATION GROUP
62
FINANCIAL STATEMENTS 64
ADDRESSES72
The cover shows second officer Andrei Prebeg on board
Stena Atlantica, an ice-class Aframax tanker of 115,000 dwt.
10
26
30
36
42
THIS IS STENA AB
REVENUE
MSEK
ACTIVITIES ALL OVER
THE WORLD
33,563
176
26,700
1)
RESIDENTIAL AND
­COMMERCIAL UNITS
VESSELS
INCLUDING NEWBUILDINGS
16,000
EMPLOYEES
96
WIND TURBINES
IN OPERATION
1) Owned and managed
A YEAR WITH STENA
SWEDEN
SOUTH KOREA
Stena Renewable’s latest wind farm, at Fredriksdal outside Nässjö,
­comprising ten wind turbines, is opened in June in a festive atmosphere.
This brings the total number of wind turbines in operation to 96.
Construction work on a Stena MidMAX type oil rig in progress
in July at Samsung Heavy Industries in South Korea. Delivery is
scheduled for 2016.
BUSINESS IDEA
By using our competence in, above all, service, trading
and ships, to make money in the business areas ferry
RESPONSIBILITY IN OUR
­BUSINESS RELATIONSHIPS
­operations, offshore drilling, shipping, property and
By building long-term relationships with our customers,
finance.
suppliers and subcontractors, we are committed to
To create new companies for the future.
To take care of our most important asset in the long term,
our customers, in such a way that we contribute to their
development as well as that of society.
­delivering high quality and best-value services.
We will meet the highest safety standards. Trust is the
basis of all our relationships in society.
We are committed to meeting our customers’ expectations in respect of sustainable business practices.
We have high standards of corporate social responsibility, which we share with our business partners. We
CUSTOMER RELATIONSHIPS
may withdraw from a business relationship if we feel
that the standards we uphold are not being met by a
business partner.
 Always the customer’s first choice
 Leader in quality and quality-assured partners
 Always efficient and effective with our own
and others’ resources
 Clearly delegated business responsibility
We have committed to comply with the standard f­ ormulated
by the Logistics & Transportation Corporate C
­ itizenship
Initiative of the World Economic Forum.
SWEDEN
PANAMA
SWEDEN
Stena Adactum’s subsidiary Envac launches its new “Quantum”
­s ystem, which is 50% more energy-efficient than Envac’s conventional
waste management systems and has up to twice their waste capacity.
The product tanker Stena Conquest goes through the ­Panama
Canal on its way from Houston to Panama City during s­ ummer.
The passage takes about three days. Stena Bulk’s tankers have
traversed the Canal 45 times during 2014.
Construction of 154 student apartments and 48 rental units
in Bredäng begun in September. Six new buildings are being
constructed and the estimated housewarming period is
December 2015 to May 2016.
2014 AT A GLANCE
EBITDA1)
KEY RATIOS
excluding net gain on asset sales
MSEK
MSEK
10,000
Total income
8,000
2013
2014
30,240
33,563
Net gain on sale of vessels
25
4,000
Net gain on sale of properties
51
212
2,000
EBITDA
7,947
9,645
Income from operations before sales of non-current assets
3,811
4,653
Income from operations
3,887
4,865
Income before tax
2,148
2,799
6,000
0
10
11
12
13
14
1) E arnings before interest, taxes,
depreciation and amortisation
1)
Total assets
INCOME BEFORE TAX
MSEK
4,000
108,212
125,817
Equity
35,274
38,978
Equity including deferred tax liability
39,214
42,838
Net interest-bearing debt, excl. Stena Fastigheter
35,848
38,866
Net debt
48,110
50,566
55
54
7,022
5,696
11,348
11,231
5,600
4,700
137
151
Debt/equity ratio, %
3,000
Investments
2,000
Average number of employees
1,000
Number of employees, external ship management
0
Number of vessels
10
11
12
13
2)
14
1) Earnings before interest, taxes, depreciation and amortisation
2) Including owned and chartered vessels
SCOTLAND
FINLAND
SINGAPORE
On October 6, Stena Drilling celebrates 12 months without losttime incidents across the entire fleet of vessels and rigs. The
remainder of 2014 also continues without any incidents.
In November, Stena Line starts a strategic partnership with Mann
Lines, thereby strengthening the company’s position in the Baltic
Sea. Stena Foreteller, which is owned by Stena RoRo, is chartered
to Mann Lines under the partnership.
Stena Impression, the first tanker in the IMOIIMAX series,
undergoes seatrials in the South China Sea at the end of the
year before delivery in January 2015.
STENA AB 2014
1
CEO COMMENTS
ABILITY TO COMPETE IS BUILT
ON ABILITY TO PERFORM
Our business can only be sustainable if we every day, through effective performance,
contribute to our clients’ success.
The successes this year for our clients, partners and society
include our commitment to safe operations, which continues
and our dedicated crews have managed to decrease Lost Time
Incident Frequency (LTIF), further in most business areas from
already low levels. Our officers and crew on board the ships
that Northern Marine manage for Stena Bulk have delivered
a fine result for safety and performance. The yearly average
number of observations per vetting inspection was 2.6 – a
record low. In October Stena Drilling could celebrate 12
months straight with zero Lost Time Incident (LTI) for their
whole fleet; the remainder of the year was also LTI free. They
also delivered best in class operational performance of 98%
for the year, ensuring always to be our clients’ first choice.
One example is our client Hess, who chartered our drillship
Stena Drillmax and stated “we are amazed the unit could drill
a well with zero Non Productive Time”.
Through several innovative projects our shipping and ferry
operations have increased their energy efficiency and decreased
the environmental footprint. Overall fuel consumption (measured in metric ton per kilometer) was this year reduced by an
average of 15% for the whole fleet. Stena Property’s target is
to reduce energy consumption in their properties by 20% over
ten years. Since commencement in 2010 electricity has so far
been reduced by 9.1% and heating by 8.1%..
2
STENA AB 2014
The annual Customer Satisfaction Surveys for Stena Line
once again showed that 51% of travelers gave us the highest
grade possible (very satisfied) while freight customers rated
our services 4.2 out of maximum 5. As one freight customer
puts it; “I represent the ‘small customer’ who do not travel so
frequently, but always feel welcome and always get a friendly
and professional treatment”. No wonder the Stena Line network of 22 lines increased their freight volumes by 5%. In
effect Stena Line is developing into a very important part of
sustainable European infrastructure.
Stena Property continues to improve their service index and
they are now among the best within their segment of companies with more than 9,000 apartments, a proof that caring for
our tenants by close dialogue and mutual projects – “Relationship Management” is working very well.
Innovation is a way to constantly improve. Since commencement our internal innovation programme in Stena Line has
generated 11,000 proposals for improvements of which 1,700
have been put into action.
When it comes to cost cutting Stena Line reduced their
costs with MSEK 200 and the rest of Stena AB cut their administrative costs with an additional MSEK 135.
”The mantra for each
of us is education,
education”
STENA AB 2014
3
CEO COMMENTS
Competence development
Our business is expanding. At present for instance 386 sea-­
cadets are undergoing our education programme and we
spent MSEK 160 last year on education.
Northern Marine Group, who provides ship management
services, were trusted to open an advanced joint training
center of excellence in Glasgow on behalf of their clients
Chevron Shipping. First class instructors and simulators will
enhance knowledge and safety at sea – the combined investment in this venture is in excess of MUSD 20.
Affecting Stena as everyone else the digital information and
communication technologies are radically changing the way
we produce, transport, trade, consume and train ourselves. It
is evident that technology creates new products and companies as well as new ways of doing business. New options for
products and services are developing. It gives us the chance to
sell especially our travel services more cost effectively. It gives
us also the chance to remain in constant contact with our clients and the chance to immediate communication between
ourselves and our business partners. Although the transaction
cost is cheaper over the internet, not everything will happen
via the web. We still need to be in personal contact with each
other in many cases. Many interesting combinations based on
old businesses are developing. The common denominators
though are more efficiency, more transparency and contact
24 hours a day seven days a week.
Knowledge develops fast at the moment and is in principle
open for everyone, who is searching for it. The mantra for
each of us is education, education, education. Every year
everyone, especially Stena employees, must in addition to consistently acting adequately consider how to improve in order
to keep abreast of their work. Apart from developing functional education with our employees, we are undertaking
intense courses in leadership in a systematic way for 120
selected talents. It is our hope this programme for effective
leading and managing effective teamwork can include more
people over time. Every-one of our employees is this year
undertaking exercises in care and results, we call it we-learning, one objective being to understand people´s feelings and
help each other professionally and often with empathy to
improve our business-performance.
Markets
Who had expected the oil-price for Brent to be under USD
80/barrel? Now it has happened with dire consequences for
oil-companies and the oil-service industry. With five out of
seven drilling units on long term contracts we are better
placed than most companies to weather the storm, provided
we pay consistent attention to everyday effective performance. Luckily the tanker market develops substantially better
with rates at its highest for many years. Our ferry business is
helped by the European economy doing better. Thanks to
increasing volumes the results of our ferry business is now
breaking even. With the acquisition of ten ships in the past
three years, we are well placed to expand our business. With
most of our property business invested in residential houses
we have a steady income in our Swedish business area. Our
commercial investments in the Netherlands are suffering from
a bad market, whereas we are doing well in London, Sofia
Antipolis in France and Houston. Stena Adactum, our area for
new businesses, has now a cash flow representing one tenth
of our consolidated cash flow.
It is of course positive that our properties increase in value.
As their cash flow does not increase proportionately and we
want to keep and develop our assets instead of selling them,
we are not completely happy with the development.
Since year end we have sold three RoPax ships with profit
and are happy that this market is stabilising.
HIGHLIGHTS 2014
 Revenues1) SEK 33.6 billion – 10% increase
Strategic expansion
Healthy balance sheet1)
 EBITDA SEK 9.9 billion – ”all time high”
 Total investments in 2014 of SEK 5.7 billion.
Mainly SPS1) and BOP2) for D
­ rilling, 1 new
RoPax vessel and new construction for
Stena Property
 Book value of vessel- and rig fleet,
SEK 46 billion
A
vailable cash, unused credit facilities
and financial investments SEK 17.7 billion2)­
 Newbuilding projects:
– 4.5 IMOIIMAX vessels
– Two drilling units
 N et debt excl. property loans,
SEK 39 billion
A
vailable cash, unused credit facilities
and financial investments SEK 22.0 billion3)
1) Special Periodic Service
1)
 Income before tax SEK 2.8 billion
Strong liquidity and credit profile
C
ash Conversion Cycle 19 days
 Positive cashflow in the group – MSEK 1,500
1) Incl. net gain on sale of assets and
net valuation on investment property
2) P er 31 December 2014
3) Per 28 February 2015
4
STENA AB 2014
2) Blowout preventer
 Market value property portfolio, SEK 29
billion with loan to value of 43%
 N et debt to EBITDA excl. property loans 5.0x
 Equity incl. deferred tax, SEK 42.8 billion
1) P er 31 December 2014
Profit, equity, net worth and liquidity
Values
This year’s profit before tax increased to MSEK 2,0531) in Stena
GAAP and to MSEK 2,799 in IFRS terms and increase with
MSEK 450 and MSEK 650 respectively. Our total equity including deferred taxes amount to MSEK 42,842 in IFRS terms
excluding surplus values in ships. The marine side of our business today account for 57% of our assets while real estate and
Adactum accounts for 43%. In 2018 due to relatively fast
depreciation of marine assets we expect the marine side to
equal the non-marine side of our business, asset wise. Excluding Properties and Adactum the marine side of our business
this year generated an EBITDA of 14% to book value of our
net assets and 9% to original investment.
To operate in several industry segments insures stability in
today’s world with so many global economic, political and
environmental uncertainties. It is an important task not only
for now but also for the future to secure our company´s total
resilience and at the same time implement leading ambitions
in everything we do.
Normally we have liquidity to weather a three year storm.
With more than SEK 20 billion in liquidity at present we feel
secure to weather any storm for the next five to six years.
Trading outside Sweden we meet more cost-conscientious
cultures. Our strength is capacity to see concepts and to foster
long term relations by living up to set standards. Our delegated system giving authority to and following up by objectives is good provided it is checked and supported by impeccable financial control and education in the trade. It is important
to keep the trading or action style element of our culture alive
and at the same time base our acts and performance on facts.
Care, innovation and performance are the lead-words for
our organisation. It does not harm to repeat our beliefs. Our
performance is measured by technical availability, safety, customers´ accolades, repeat business, costs and profit. Innovation is measured in terms of number of proposals by our
employees and the proportion being implemented. In short
we try to transform mindfulness into action. Care is about
being the best in terms of our financial success, our customers´
success, our employees’ success, our partners´ success and our
societal success. The words of our employees are:
Strategy
Pay attention to and transform mindfulness into action is one
of our mottos. Another one is – Small enough to care and big
enough to cope.
Regularly we follow up on our success factors namely Financial success factors, Customer related success factors, Strategic
success factors, success factors related to Collaboration and
success factors related to Communication. Our visions extends
normally over five years, with three year objectives and one
year objectives.
Our foremost strategy though is to be equipped and well
prepared for opportunities, if and when they do arise.
Lately we ordered with partners seven Suezmax tankers and
ten IMOIIMAX-product tankers at the lowest prices quoted so
far. We have bought ten RoPax vessels on the second hand
market. We have ordered two MidMAX semisubmersible rigs,
with an option to cancel one unit, to replace very old midwater units by far better performance criterions. We bought
and sold two real estate properties in London. Beginning of
2015 we sold our line Helsingborg–Helsingör and in the past
year we acquired the line Rosslare–Cherbourg.
A company that is not developing its activities will eventually have to close them. Our ambition is to keep on developing. We believe forecasting prices is not really doable. Securing
competitiveness by effective performance we can control and
we concentrate on that.
•Caring leads to Sharing – it is spelled Sustainable
Development and Working Partners both inside company
with visible employees and visible suppliers.
•Caring creates a commitment to Service and Customers´
personal satisfaction fitting to customers’ systems with
KPIs and technical solutions.
• Care drives excellence – Excellence is not an act; it is a habit.
•Care for Financial Results is Caring for Profit, Cash and
Asset Maintenance
•Care for Competence Assurance and Reassurance by
training and education.
• Care is much more than just four letters in a document….
Consequently one person is responsible to see to it that we
live up to our soft values in form of style, skills and staff, while
my deputy officer is responsible to secure that systems, structures and strategy are in place and adhered to.
So – Take Care!
With these words I would again like to thank everyone for
their support and mindful contributions during 2014. As 2015
seems to be a better year for everyone except for Stena
Drilling we have good reasons to continue living in hope.
Gothenburg 3 March 2015
1) Learn more on page 67
STENA AB 2014
5
SHIPPING AND FERRY OPERATIONS
STEADY COURSE IN
CHANGING CONDITIONS
Who could have anticipated that oil prices would fall by 50% at the end of year 2014? We had
it in one of our business scenarios, but it was certainly not our base case. Six months ago it was
hardly possible to find anybody who was speaking about an oil price around the USD 50/barrel
level. Currently it is difficult to find an analyst that envisages high oil prices in the short term
perspective. Most of our businesses are both volatile and unpredictable, but we have to use
that to our advantage.
For Stena it is less about trying to anticipate the future and
more about having financial and intellectual ability to act,
adjust and adopt to change. With falling oil prices our strategy
of having a diversified portfolio of activities is put to the test.
The falling oil prices is positive for our ferry activities and we
are currently seeing strong tanker markets, even though its
correlation with oil prices is less evident. Overall the performance of our shipping businesses improved during 2014 and
we anticipate the trend to continue during 2015.
Our drilling activities have, in terms of financial returns,
­outperformed other shipping activities in Stena for almost ten
years. The strong performance in the drilling segment has
­enabled us to invest counter-cyclically. Over the past few years
we have taken significant positions, for example the world’s
two largest RoPax ferries now trading between Hoek of
­Holland and Harwich. Another example is that Stena RoRo
successfully acquired ten second hand vessels, at favorable
prices, over the past three years.
Yet another example is the ten IMOIIMAX product tankers,
acquired together with partners and to be operated by Stena
Weco, that are being delivered with three-month intervals
from early 2015. We were able to take these positions, at
attractive prices, despite that the underlying businesses themselves did not ­warrant such investments. Now the tide has
turned and these assets will surely carry us through the next
part of the cycle.
Irrespective of whether markets are up or down, our focus
and ambition is to be “best in class” when it comes to opera-
6
STENA AB 2014
tions and business execution. The transportation of goods will
never stop, and if we continuously are our customers’ first
choice we will always have employment for our vessels.
­Operational excellence, through high quality, high service
level, reliability and being very close to our customers, is therefore our strategy. Through the network of 22 ferry routes in
Stena Line, by way of Stena Sonangol, the world’s best performing Suezmax pool, and Stena Weco/Golden Stena Weco,
now operating about 60–70 MR and Intermediate tankers, we
have platforms that give us scale and reach to be able to manage our assets better than any competitor. Further developing
these platforms by enhancing our ability to create value for
our customers and reducing our costs are the key priorities for
the next years. The age profile of our fleet and the capabilities
our vessels represent, give us the opportunity to avoid larger
new investments in the medium term. We are in good shape.
But we must never rest or relax. Operational excellence
requires constant vigilance and focus on every detail. With
over 150 large vessels trading around the globe, we carry
­significant operational risk and our crews are our most important asset. The shipping industry is continually improving its
track record when it comes to emissions, spills and accidents.
However, every incident is a failure and the consequences can
potentially be significant. Further increased focus on safety
and adopting best practices across our different companies
will, all going well, lead to a year without fatalities, with no
discharges to the sea and no collisions. Our ability to improve
ourselves and to set a standard for our industry is crucial for
”We are in good shape.
But we must never
rest or relax.”
our long term success. In northern Europe the whole shipping
sector is being put to the test by the new rules on sulphur
emissions, the SECA. We continously have to be able to
demonstrate that we are the most environmentally friendly
and cost effective way of transporting goods. In 2014 we
connected the ferry Stena Danica to the district heating grid
(“fjärr­värmenätverket”) in Gothenburg, powered by 100%
green energy. In 2015 Stena Germanica will be the world’s
first v­ essel to be powered by methanol, a quantum leap when
it comes to reducing emissions. Fuel efficiency, sustainability
and safety are issues that traditionally have been hallmarks of
Stena and they will, to an even larger degree, be part of
our future.
EMISSIONS FROM FUELS IN RELATION TO
­BUNKER OIL WITH 1% SULPHUR CONTENT
Index
400
300
200
100
0
Bunker oil
Bunker oil
Gas oil
(sulphur
(sulphur
(sulphur
content 3.5%) content 1.0%) content 0.1%)
Carbon dioxide
Sulphur dioxide
Liquefied
natural gas
Nitrogen oxide
Methanol
Particles
The graph shows emissions of different fuels in relation to bunker oil with
a low sulphur content (1%), which is index 100 on the scale on the left.
Carl-Johan Hagman
STENA AB 2014
7
SUSTAINABILITY
SUSTAINABILITY
FOCUSING ON SAFETY
AND THE ENVIRONMENT
Stena Care is about creating value and success in every part of the Stena companies’
activities and in all stakeholder relationships. Stena’s sustainability work is based on
three pillars: economic, environmental and social responsibility.
The Stena Group contributes to the development of society in
various ways. Shipping and ferry operations carry freight and
private passengers, as well as oil and gas, thereby helping to
increase trade and meet global energy needs. Stena also helps
to secure energy supply by producing renewable electricity
and providing many people with safe homes in the Group’s
properties. The environment, safety and community involvement are the sustainability issues identified as most important
for Stena.
Continuous improvement measures
Shipping is the most energy-efficient mode of transport in
­relation to cargo volume, and about 90% of world trade is
conducted over the oceans. Technological development is
important – one of Stena’s newly built tankers uses about
25% less fuel than previous generation vessels of a comparable size. There are major environmental and economic gains
in improving handling.
SUSTAINABILITY AT STENA IS BASED
ON THREE PILLARS:
•financial responsibility, with the aim of contributing to
­e conomic development;
•environmental responsibility, where the goal is to reduce
the Group’s impact on the environment; and
•social responsibility, where the fundamental approach is
to act ethically in everything the Group does.
More than 200 projects have been completed under Stena
Line’s energy-saving programme since it was initiated in 2006.
These include installation of frequency-controlled equipment
for pumps and fans, improvement of combustion in engines
and optimisation of cargo.
Stena Bulk has come a long way in fuel efficiency measures
in recent years, and the focus in 2014 has been on simplifying
the work of the operators, thus facilitating saving measures.
Each trip is undertaken with an energy budget, which is
­monitored and compared with statistics from other trips on
the same route or with the same type of vessel. Speed, consumption and weather forecasts are included in the planning,
in order to achieve optimum effects in terms of both economy
and environment.
Fuel consumption for the entire fleet in 2014 increased
by 3% in absolute figures as a result of an increased fleet,
­volumes and distances. At the same time, fuel efficiency
improved by 14.7%, measured in tonnes/kilometre, and 2.2%,
measured in tonnes/nautical mile.
VESSELS’ CO2 EMISSIONS 2014, %
Stena Line 42%
Stena Bulk 31%
Stena RoRo 10%
Concordia Maritime1) 9%
Stena Drilling 8%
Total 3.2 million tonnes CO 2
1) Concordia Maritime’s majority owner is Stena Sessan AB
8
STENA AB 2014
THE SULPHUR DIRECTIVE – AND A WORLD FIRST
On 1 January 2015, a new sulphur directive came
into force for shipping in the Baltic Sea, the North
Sea, the English Channel and the coasts of North
America. Under the directive, the maximum permissible sulphur content for marine fuels is reduced
from 1% to 0.1%. The consequences for the
­shipping industry have been significant, as vessels
­sailing in these areas have either had to switch to
more expensive low-sulphur fuels or invest in various types of exhaust cleaning systems on board.
However, this also means a further reduction in
the already low emission levels, particularly sulphur
oxides (SOX) but also dust and particulate matter
(PM), which will allow shipping to consolidate its
position as the “green” transportation option.
To meet the new directive in the best way for
each vessel, Stena uses several alternative solutions.
An exciting project involves evaluating a brand new
fuel for shipping. In 2014, it was decided to convert
the ferry Stena Germanica to run fully on methanol,
which will substantially reduce SOX, NOX and PM
emissions. Following the conversion, she will be the
world’s first methanol-powered ferry.
High safety level
Community involvement beyond the norm
Safety is of utmost importance in all activities within the Stena
Sphere. Stena Line works systematically on safety issues Despite
this, a tragic accident occurred during the year in which an
employee died during the unloading of a ship in Frederikshavn.
As a result, procedures have been reviewed and safety has been
particularly improved in the interface between ship and quay.
During the year, Stena Drilling introduced training for senior
crewmen on drillships and rigs. The aim is to improve their
ability to see the root causes of why accidents occur, which
will make them more adept at avoiding accidents in the future.
The r­ igorous safety work is also producing effects. In October,
Stena Drilling celebrated a year without any LTIs on all seven
units.
For more than 12 years, Northern Marine has worked in
accordance with a method called Behaviour Based Safety (BBS)
to prevent work-related accidents and injuries. By reporting
unsafe conditions, actions or near-miss situations, a proactive
and positive safety culture is created on board. In 2014, a total
of 5,948 potential incidents were reported which could then
be dealt with before they led to actual incidents. This is an
increase of 17% compared with 2013, and is clear evidence
that the system works.
Stena Property’s sustainability work is firmly rooted in the
business concept of long-term ownership and development
of attractive residential and commercial premises in good
­locations. To a large extent, this is based on community
involvement in the property portfolio areas.
Through its own Relationship Management concept, the
company develops sustainable residential and workplace
­environments. The purpose is to create involvement and
increased responsibility for tenants by allowing them more
control over their living environment. In concrete terms,
­Relationship Management means that Stena Property engages
in a number of projects and activities that provide safety,
well-being and stability in the residential areas, with a focus
on children and young people. The projects include ­summer
jobs for 300 young people in the residential areas, work experience, homework help, arts and cultural activities, environmental stewards, planting days and “library in the laundrette”.
Learn more about Stena’s
sustainability work in the
­sustainability report at
www.stena.com.
STENA AB 2014
9
STENA AB > STENA LINE
STENA LINE
AN EFFICIENT LOGISTICS
­NETWORK FOR THE FUTURE
At year-end 2014, Stena Line operated 22 routes in Northern Europe, with 42 ferries.
Stena Line also owns five ports and is an important part of Europe’s trade and
­infrastructure. Managing this business in a cost-effective, safe and environmental
friendly way is a daily challenge for our dedicated employees at sea and on land.
In January 2012, Stena Line launched its change programme
for meeting the challenges that the European shipping industry faces. This work has been successful in many aspects during
2014. This applies particularly to the company’s efforts to
increase freight volumes.
larger tonnage on the Holyhead–Dublin route. The success is
also a result of Stena Line having expanded its efforts to
­identify new customer segments. Contracts secured include
for instance AB Volvo and Volvo Cars on the Gothenburg–Kiel
route. Stena Line also purchased the vessel Stena Superfast X
during 2014.
Freight
By offering one of Europe’s most comprehensive transportation network, Stena Line has increased freight volumes by 5%,
despite a lack of growth in the underlying economies. One
reason is intermodal expansion, with new trains from Poznan
in Poland and Verona in Italy to Kiel and Rotterdam, which has
been very successful. The logistics network was developed
during the year through a partnership with Mann Lines, giving
our network a west–east link from Harwich to Turku.
In response to increased demand from freight customers,
Stena Line has expanded the fleet, adding two new vessels to
the Irish Sea and North Sea routes and replacing a vessel with
Travel
On the travel side, Stena Line has been successful in establishing new and appealing customer concepts. One result has
been lower shop prices, which is a competitive advantage,
particularly in Scandinavia where shopping is an important
part of the travel experience.
Stena Line has launched an updated digital booking platform, which has had an increasing number of visits and a high
conversion rate. The platform provides the basis for further
development in digital media.
12,200
MSEK REVENUE
36%
SHARE OF GROUP
­REVENUE
10
STENA AB 2014
5,500
EMPLOYEES
14,800
MSEK CAPITAL
EMPLOYED
DAY/NIGHT FERRIES/HSS
RORO FERRIES
ROPAX FERRIES
8
6
28
“Passenger safety
and security is always
in focus”
CARL-JOHAN HAGMAN > CEO
Stena Line continues to be in a challenging situation,
with the new tough sulphur emission legislation implying additional costs of about MSEK 500, general cost
increases and increased competition from tunnels and
bridges. However, the goal is not to have to deliver a
negative result in 2015.
To ensure the company’s long-term success, Stena
Line must be able to provide competitive logistics
­solutions for our freight customers, and offer enjoyable
experiences to our passengers. Professional and dedicated employees is our most important asset.
STENA AB 2014
11
STENA AB > STENA LINE
During the spring 2014, Stena Line acquired a route
between Great Britain and France. This has given Stena Line
an important foothold in the French market and further
expanded its logistics network.
the year. The most important aspect of the company’s operation is that it is always carried out with a high level of safety.
The two large sister vessels Stena Hollandica and Stena
­Britannica, which were taken into service in 2009 on the North
Sea routes and have a capacity of 5,500 lane metres, have
improved from a low utilisation rate of 30% to a high 50%.
In Scandinavia, Stena Line is challenged by the weak economy, particularly in Denmark. Management must develop the
company’s market position to ensure long-term profitability
for these important routes to Denmark.
The measures Stena Line has implemented have increased
revenue. In addition, the company has reduced costs by just
over MSEK 200, which has improved the overall result for
2014. The company is optimistic that it will be able to continue
to strengthen results in the coming years.
Operation
Stena Line’s efforts to coordinate purchases and reduce the
number of suppliers has continued in 2014, and these have
been optimised and systematised through a coordinated
approach to purchasing. One example is the collaboration
with the Spanish winery Francisco Gomez, where a large
­purchasing volume of the organic wine Casa Galvis makes it
possible to offer customers high quality at a low price.
Great progress has been made in optimising the route
­network in the form of timetables and capacity. Where it has
been considered appropriate, the company has introduced
standard tonnage, creating a higher degree of flexibility, while
new ships have been placed in service where a sustained
increase in demand is expected.
Environment
Stena Line’s environmental work is centred on reduction of
emissions into air and sea, and has focused on measures to
reduce energy consumption for some time. The target is an
annual reduction of 2.5% in bunker consumption per nautical
mile. The target was exceeded in 2013, but a higher cargo
intake, increased displacement and unusually severe weather
in the Irish Sea in the first quarter meant that total consumption was only reduced by 1.4% in 2014.
When the threshold value for sulphur emissions in the SECA
area was reduced to 0.1% in January 2015, Stena Line was
well prepared. The main solution was to switch fuel to MGO
(marine gas oil). Another option was to use scrubbers, which
clean the exhaust gases. Stena Line will be installing scrubbers
on one of its ships in autumn 2015. Perhaps the most exciting
measure is the conversion of Stena Germanica to become the
world’s first ferry to run on ­methanol. The conversion was
completed in March 2015.
Low cost operator
Systematically improving our operational excellence is a goal
that we have worked on since 2012. High-priority areas in
2014–2015 are development of expertise in terminal handling,
purchasing, optimisation of on board staffing and simplified
shore-based administration. This is a long-term and systematic
process aimed at providing Stena Line with an operating
model that is cost-effective and delivers reliable and high
­quality.
Passenger safety and security is always in focus for all Stena
Line employees. Safety is developing in the right direction in
terms of both lost time incident frequency and the number of
observations during inspections and work on safety must
never cease. Even so, a tragic fatal accident occurred during
VOLUME TREND, THOUSANDS
Passengers
Cars
Freight units1)
12,000
2,800
2,000
9,000
2,100
1,500
6,000
1,400
1,000
3,000
700
500
0
0
10
11
12
13
14
1) One freight unit is a truck, trailer or railway wagon
12
STENA AB 2014
0
10
11
12
13
14
10
11
12
13
14
The new warehouse at the Germany Terminal in Gothenburg
handles many of the items offered on board.
“Purchasing used to be decentralised. Now we have a
coordinated range. We have moved from purchasing many
different products from a large number of suppliers to
­purchasing large volumes from fewer suppliers. Where
­previously we could have more than 20 different brands of
coffee on different ships, we now have one. Large volumes
and our own transport provide high quality at low cost,”
says Per Ola Jönnerheim (right), who is Head of Onboard
Services at Stena Line.
MSEK
6,000
REVENUE PER ACTIVITY
4,500
3,000
MSEK
6,000
1,500
4,500
0
10
3,000
11
12
13
14
Passengers
1,500
Onboard sales
Freight
0
10
11
12
13
14
Passengers
Onboard sales
Freight
STENA AB 2014
13
STENA AB > STENA DRILLING
STENA DRILLING
FOCUS ON SAFETY ROUND
THE CLOCK, ALL YEAR ROUND
Stena Drilling is one of the world’s leading independent drilling operators. The company
operates globally from its head office in Aberdeen, Scotland, with four drillships for
ultradeep water and three semi-submersible drilling rigs. With several successful new
­newbuildings and refurbishment projects, Stena Drilling has been a pioneer in several
areas of technological development and innovation in the offshore industry.
In South Korea, work is progressing on the drilling rig that
Stena Drilling ordered in 2013. The contract signed with
­Samsung Heavy Industries covered two semi-submersible
rigs, with an option to cancel one unit. The option has been
extended and means that Stena Drilling can make a decision
in the spring of 2015.
Stena Clyde was employed on several short contracts during
the year, the last with CAL Energy, expired towards the end of
2014. At the end of 2014, the drilling rig was at a shipyard in
Singapore for its SPS. This is a mandatory inspection every five
years to ensure that high safety standards are met. During an
SPS, the unit’s propellers and drilling equipment are removed
and maintenance work is carried out on them, while the hull is
also examined.
During the coming year, Stena Forth will go into dock for an
SPS lasting 60 days starting in May 2015. Stena Don will
undergo an SPS later in 2015.
The contracts for Stena Spey, Stena DrillMAX and Stena
­IceMAX are continuing. Stena Drilling had a longer contract
with Statoil for Stena Carron, which lasted until the third quarter of 2017. Statoil decided to cancel this contract in 2014 and
pay a cancellation fee. Stena Drilling believes that there are
good opportunities to sign a new, favourable contract for the
drillship.
8,400
MSEK REVENUE
25%
SHARE OF GROUP
­REVENUE
14
STENA AB 2014
1,100
EMPLOYEES
DRILLSHIPS
30,700
MSEK CAPITAL
EMPLOYED
DRILLING RIGS
4
3
Stena Spey is a semi-submersible
drilling rig, built in 1983 at the
­Daewoo shipyard in South Korea.
The drilling rig is contracted until
the end of 2016.
TOM WELO > CEO
2015 will be a special year, with reduced investments
in many markets. Our customers are very happy with
what we deliver, which gives us a good position
despite the slump in oil prices at the end of 2014.
The next few years will be marked by considerable
uncertainty about macroeconomic factors. Some of
this is associated with the US presidential election in
2016, which may affect international demand for oil.
STENA AB 2014
15
STENA AB > STENA DRILLING
Rigorous safety work is carried out on a
daily basis on board Stena Drilling’s units.
In 2014, the company was pleased to
report twelve consecutive months
­without a single lost-time incident.
16
STENA AB 2014
Safety in focus
Stena Drilling has had a very successful year, particularly from
a safety perspective. In October 2014, the company was
pleased to announce that Stena Drilling’s seven units had
completed twelve consecutive months without any lost-time
incidents.
The reason for this successful result is Stena Drilling’s
far-reaching and tangible safety work. Safety is not the
responsibility of a separate department, but is an integral part
of the line organisation’s operational responsibility. Management of the drilling units plan and conduct the day-to-day
work, and ensure that safety is given the highest possible
­priority. Any deviations from normal are documented and
­evaluated at safety audits seven days per week.
Personnel
Through its operations, Stena Drilling employs about a thousand people on the seven units. The challenge lies in recruiting
the right people to work on board. As employees spend a
month at sea, they need to have the understanding and the
right attitude to be away from their family for a long period.
Since 2007, Stena Drilling has had a low employee turnover of
6% per year. Almost 50% of people who leave the company
return. This is largely because employees see themselves as
part of the company, in that they are given responsibility and
authority to participate in the business.
Future development of the industry
For a number of years, international oil companies have
invested large amounts in the business. This trend has slowed,
while unrest in the Middle East and uncertainty in Russia have
led to reduced activity in these areas. In Brazil, the petroleum
industry continues to be very important for the region.
The contracts that Stena Drilling has remain positive. The
company has a good reputation and a very high utilisation rate
for its units, which reached 98% in 2014. With our best in
class operation, we guarantee a high level of customer
­satisfaction and the company is therefore well equipped to
respond quickly to a changing market.
FLEET UTILISATION
DRILLING CONTRACTS1)
100%
Unit
75
Stena Clyde
50
SPS
Q3 2015
Statoil
Q4 2017
Stena Spey
Enquest
Q3 2016
Tullow
Q3 2018
Stena Carron
0
10
11
12
13
14
Operational use as a percentage of total available days.
Expiration2)
Stena Don
Stena DrillMAX
25
Customer
Warm Stacked
N/A
Stena Forth
Hess
Q2 2018
Stena IceMAX
Shell
Q2 2017
1) A
s of 31 December 2014
2) Including options
STENA AB 2014
17
STENA AB > STENA BULK
STENA BULK
EXPANSION PLANS
AND A GROWING FLEET
Stena Bulk is one of the world’s leading tanker operators, offering safe and
cost-effective transportation of crude oil and refined petroleum products by sea.
This requires a holistic perspective – from development and construction to
crewing and chartering of first-class tankers.
The results for 2014 were significantly better than expected
and the strongest since in 2008. The main reason is a positive
development for the company’s Suezmax and Aframax class
crude oil tankers, although our product tankers also showed
a positive trend.
Freight rates for our crude oil tankers rose by over 60%
­during the year. Stena Weco’s MR market for clean petroleum
products had a weak start to the year, but made a strong recovery at the end of the year and Stena Weco reported a profit
above expectations. The recovery was largely attributable to
new refineries, longer transport distances and falling oil prices.
Both Stena Sonangol Suezmax Pool and Stena Weco
­continue to be prominent in terms of triangulation (efficient
logistics system).
Stena Bulk’s three LNG tankers Stena Blue Sky, Stena Clear
Sky and Stena Crystal Sky are employed on time charters.
­Particularly notable was their extremely high utilisation rate
and the fact that they were in operation every day during
2014. The high utilisation rate is a result of our safe and efficient operation of the vessels, which places the company in a
good position to meet customer expectations. These factors
ensure that Stena Bulk’s offering in the LNG segment is still
attractive to the market.
Fleet expansion
Stena Bulk’s fleet consists of vessels owned by the company
itself and vessels owned with partners. There are also vessels
that are chartered for short or long periods and commercially
managed vessels. The total fleet comprises about 115 vessels,
which is an increase of about 20 vessels since 2013.
Within this expansion, the Stena Weco system has been
expanded by an average of ten vessels, which means that it
consisted of about 60 ships at the end of 2014. Stena Weco is
­planning roughly the same fleet increase in 2015, and this will
1,800
TANKERS
MSEK REVENUE
5%
SHARE OF GROUP
­REVENUE
300
EMPLOYEES
6,700
LNG TANKERS
MSEK CAPITAL
EMPLOYED
SHUTTLE TANKERS
18
STENA AB 2014
107
3
6
ERIK HÅNELL > CEO
Stena Bulk is measuring up well to its defined goals
and the business has delivered significantly better
results than expected. For 2015, the goals have been
made even higher. We expect to maintain or increase
our market share in a growing market. Demand for
transportation of crude oil is expected to increase by
2% and for transportation of products and chemicals
by 5%. Stena Bulk is well placed to deliver stronger
results than in 2014.
STENA AB 2014
19
STENA AB > STENA BULK
include four of the IMOIIMAX vessels scheduled for delivery to
Stena Bulk and its partners in 2015.
Golden Stena Weco is a joint venture between Stena Weco
and Indonesia-based Golden Agri-Resources, which produces
and trades in vegetable oils. Golden Stena Weco, which carries
chemicals as well as vegetable oils, has shown very positive
growth in earnings and volumes during the year.
In 2014, Golden Stena Weco took delivery of the five vessels
purchased in 2013. In addition, the company has expanded its
fleet by contracting a number of vessels on time charters. This
brings the total fleet to 15 vessels, compared with the seven to
eight vessels the company had available the previous year.
Golden Stena Weco’s aim is to continue its growth through
freight contracts and favourable logistics.
The size of Stena Sonangol Suezmax Pool has varied between
20 and 25 vessels and had largely the same number of vessels
in 2014 as in 2013. Stena Sonangol Suezmax Pool is one of the
most energy-­efficient pools in the world and has the highest
income of all comparable competitors. The aim is to continue
the growth so that the pool encompasses 30–35 vessels.
During the year, we sold our 35% ownership share in
­Paradise Tankers, which had comprised co-ownership of three
Panamax vessels. In connection with the transaction, we
acquired one of the tankers.
In early 2015, we sold Stena Calypso.
Extended operation in Asia
A joint office for Golden Stena Weco’s operations was established in Singapore in 2012. The partnership has developed
20
STENA AB 2014
very positively and Golden Agri-Resources’ promised freight
volumes have also materialised. The total increase in freight
volumes is 20%. Golden Stena Weco’s expansion has enabled
the company to extend its operations, resulting in further
recruitment.
Business at Stena Bulk’s Singapore office has also increased
as a result of changed trade patterns. Now that the United
States has reduced its imports of oil from West Africa and
Venezuela, increased volumes are turning to Asia, bringing
more business to the Singapore office.
Impact on society
With bunker consumption accounting for 40–80% of shipping
costs, a reduction in energy consumption has a major impact
on the overall economy. Stena Bulk has succeeded in improving its annual energy efficiency by up to 12% over the last two
years. An important reason for this success is the company’s
continuous improvements to technical solutions. Other explanations are energy management, optimisation and the individual energy budgets that are produced for each vessel before
every trip. Overall, costs have been reduced by MUSD 8 during
2014.
In 2014, a school was opened in Angola as part of a joint
initiative of Stena Bulk and Sonangol. The purpose of the initiative is to share the expertise that Stena Bulk possesses and its
long-term outcome may be an increase in the local supply of
well-trained seafarers. Learn more on page 26.
The IMOIIMAX tanker Stena Impression
was christened in Singapore in early 2015.
The ship’s godmother is Jesslyne Widjaja,
­Director, Corporate Strategy & Business
Development, Golden Agri-Resources.
21
STENA AB > STENA RORO
STENA RORO
EXPERTISE IS OUR
COMPETITIVE EDGE
Stena RoRo provides vessels, innovative solutions and project management. Its
­customers are operators and shipping companies around the world. The company’s
expertise, dedication and financial resources create customer value, growth and
profitability, and make it an attractive place to work.
The European RoRo and RoPax markets have been challenging
for a number of years. Stena RoRo, which charters out vessels
to other companies mainly in Europe, is naturally affected by
these market conditions, but is standing up well against the
competition. Due to the weak market, Stena RoRo has been
able to invest counter-cyclically in ten vessels during the last
three years. The company buys ships when demand is low,
renovates them in order to charter them out and eventually
sell them when the market improves.
The RoRo segment is still affected by oversupply of vessels.
A large number of ships were ordered before the financial
­crisis and delivered around 2010.
The RoPax market is in better balance. The market has
­virtually no newbuilding to speak of and we are also seeing
scrapping of smaller and older vessels and a rearrangement of
vessels – ships that were previously operated in European
waters now being employed on Asian routes, for example. This
means that ships on charters outside Europe are strengthening
the European market, while older ships are phased out in Asia.
Renovated ship chartered out
Part of Stena RoRo’s business concept is to establish charter
operations in markets where there is growth. With this in
mind, the company chartered a RoPax vessel to the Chinese
shipping company Bohai Ferries in June 2014. The vessel in
question, Hoa Sen, had been laid up for more than two years
when Stena RoRo bought it from the Vietnamese state shipping company Vinalines. After five months of extensive renovation, the vessel is now on charter between China and South
Korea, under the name Stena Egeria.
Stena Alegra will again be chartered out to the state
­shipping company Interislander of New Zealand. The prelude
600
MSEK REVENUE
2%
SHARE OF GROUP
­REVENUE
22
STENA AB 2014
400
EMPLOYEES
RORO FERRIES
2,900
MSEK CAPITAL
EMPLOYED
ROPAX FERRIES
7
11
to the deal was a damage to one of Interislander’s ships in
late 2013 leaving Interislander in great need of a replacement
­vessel. Stena RoRo’s response meant that the companies were
able to quickly agree on a six-month charter contract, and a
month later Stena Alegra was delivered to Wellington in New
Zealand.
The new and longer arrangement means that the vessel has
to undergo an extensive upgrade and refurbishment to meet
the customer’s requirements for the route. The ship will have
stabilisers installed and new customised interiors. These works
will be completed in a shipyard in Singapore. This is a good
example of Stena RoRo’s long-term ambition of delivering
optimised vessels to our customers.
Another major event of the year is the purchase of D
­ ieppe
Seaways, now renamed Stena Superfast X. Stena RoRo negotiated and completed the transaction on behalf of Stena Line.
The acquisition was made at favourable terms. Before the
ship was taken into service in February 2015, it underwent an
extensive upgrade and ­customisation for Stena Line’s Irish Sea
routes.
To secure Stena Line’s tonnage requirements on the Irish
Sea, Stena RoRo was commissioned by Stena Line to renego­
tiate two long contracts for Stena Superfast VII and Stena
Superfast VIII.
The Mercy Ships Foundation provides advanced free medical care on board the world’s largest civilian hospital ships in
some of the poorest countries in the world. At the end of
2013, the F­ oundation ordered another ship and Stena RoRo
was commissioned to carry out the transaction on a commercial
basis. Stena RoRo has designed and procured the ship and is
responsible for project management and supervision during
the c­ onstruction period.
PER WESTLING > CEO
Over the next two years, the RoRo market is expected
to remain challenging, although the outlook appears
somewhat brighter for the larger ice-class RoRo tonnage with scrubbers installed. In 2015, new stricter
sulphur regulations are being introduced within the
Sulphur Emission Control Areas (SECA) and will affect
the entire industry in the areas where the new
­directive applies – for our o
­ perations this is particularly
the case in northern Europe. For RoPax vessels, we see
a balance between supply and demand, and we are of
the opinion that the market will strengthen in the
future.
STENA AB 2014
23
STENA AB > NORTHERN MARINE GROUP
NORTHERN MARINE GROUP
ANOTHER YEAR OF
SIGNIFICANT DEVELOPMENT
Based in Glasgow, Scotland, Northern Marine Group (NMG) provides ship
management services to the Stena Sphere and selected external clients through
our global network of offices in Aberdeen, Glasgow, Gothenburg, Houston,
Manila, Mumbai, St. Petersburg, Shanghai and Singapore.
In recent years the shipping industry has been characterised by
slim margins and low profitability in general. The focus on cost
control remains a priority for vessel owners, on the premise of
no deterioration in the standards or quality of onboard operation. Despite these challenging conditions, a number of clients
have experienced fleet growth during the period, and Northern Marine welcomed the opportunity to provide ­technical
management services for these additional vessels.
Additionally a new subsidiary company, Northern Marine
Ferries Ltd, was established in January 2014 as part of the
wider Northern Marine Group restructure, to consolidate the
experience capability in managing RoPax and RoRo vessels into
a standalone company, thereby enabling greater focus on the
specific requirements of the vessel type. During the year we
have also implemented a new Safety Management System
(SMS) to better support the particular requirements of RoPax
and RoRo vessels.
Center of Learning and Development
The construction of the Chevron Center of Learning and
­Development within the grounds of the existing Northern
Marine headquarter in Glasgow continued in 2014. The new
building, Scotia House, was fully completed by the end of
September 2014, and was officially opened in late October
by Stena CEO Dan Sten Olsson, Carl-Johan Hagman, Shipping
Director of Stena AB, and Mike Carthew, President of Chevron
Shipping Company LLC. The Center has been established
to deliver and maintain the highest standards of safety and
operational excellence on the Northern Marine and Chevron
fleet of v­ essels. With the help of advanced simulators the
Center is dedicated to the training of all mariners sailing in
these fleets. These facilities will assist both companies in
meeting the t­ raining requirements of the maritime and offshore industry. The combined investment in this venture is in
excess of MUSD 20.
450
MSEK REVENUE
1%
SHARE OF GROUP
­REVENUE
7,700
EMPLOYEES
1) O
f whom employed on: Stena vessels 2,500, external vessels 4,700, shore based 500
24
STENA AB 2014
1)
300
MSEK CAPITAL EMPLOYED
Corporate Social Responsibility
The overarching priority for Northern Marine is to ensure the
health, safety and security of all staff, thus providing a reliable
and efficient service for clients whilst minimising the impact
on the environment. The welfare and development of all
employees is paramount to achieving this objective, and the
company strives to support the enhancement of skills already
existing within Northern Marine. This ongoing investment will
allow personnel to meet the increasingly diverse requirements
of the client base, and achieve a sense of personal development, as Northern Marine seeks to ensure the highest quality
of dedicated professionals available in the industry.
Sustainability
Energy efficiency as well as other environmentally friendly
solutions can create a competitive advantage for clients,
­generating better fleet utilisation and a better commercial
outcome for each voyage. Northern Marine has always
been at the f­ orefront of developing engineering solutions to
improve energy efficiency management. This proactive approach
has ensured that the Group is in a position to take advantage
of advances in technology for the benefit of their clients and
the environment.
Objectives 2015
Northern Marine’s approach is always to be proactive in every­
thing we do, never more so than in the mission to excel in health,
safety and environmental performance. Focus to reach energy
targets and to follow best management practices to achieve
the defined goals is priority.
The continued focus on process safety and further development of the Behaviour Based Safety programme to prevent
accidents and incidents will extend throughout 2015, supporting the objective to provide the safest possible working environment for all employees.
HUGH FERGUSON > MANAGING DIRECTOR
The financial pressures on companies operating in the
shipping industry show no signs of decreasing, indeed
the cost of meeting the increasing regulatory requirements of our industry each year prove an additional
challenge.
Shipping tends to be exposed to cyclical e­ conomic
changes. However, for 2015 as in every year, the safe
and efficient operation of the vessels must remain
stable and sustainable. This must be achieved with
equally sustainable cost efficiency, all of which can
only be achieved by professional staff providing first
class management services.
STENA AB 2014
25
STENA AB > NORTHERN MARINE GROUP > CASE MARITIME TRAINING CENTERS
NEW TRAINING CENTERS
ON THREE CONTINENTS
With the opening of multi-million dollar Maritime training centers in three ­
different continents in 2014, Stena once again demonstrated the company’s
long term commitment to seafarer training at the very highest level.
2014 was a year of significant achievement in the training of Stena seafarers,
with the opening of multi-million dollar Maritime training centers in Scotland,
Angola and the Philippines.
The Clydebank Training Center in Glasgow incorporates a 100 seat Auditorium
and greatly enhances the induction of all new UK Northern Marine and Stena Line
employees to the Stena Group. The adjacent newly opened innovative and state
of the art Simulator Center, shared with Chevron Shipping, is designed to provide
quality teamwork training to our officers, develop and enhance their operational
performance and equip them with the skills necessary to lead the seafarers of
the expanding Stena fleet.
The new maritime campus in Angola, Centro De Formaçã Maritima de Angola
(CFMA), is a superb example of international partnership and vision, and will play a
significant role in developing Angolan seafarers for the future in co-operation with
Sonangol.
In the Philippines more than 2,000 seafarers will receive the highest standard of
maritime and offshore safety training at the new Maritime Safety Training Center.
These achievements demonstrate the long term commitment of Stena in
equipping our present and future seafarers with the education, skills and individual
talent development to crew the expanding Stena fleet and continue to compete
at the very highest level.
CFMA IS ADAPTED FOR
200 STUDENTS A YEAR
The first year of study is in Angola,
the second in Glasgow.
26
STENA AB 2014
THE SCHOOL'S AREA IN ANGOLA IS
70
HA
Equivalent to
90 football fields.
I have come a long and difficult way to achieve my goals.
I intend to continue pursuing them until the result is
­satisfactory.
I am happy and honored to be part of the first group
of cadets studying at CFMA. I feel very excited to see
what the future holds and for the possibility to make a
difference in helping the Angolan economy.
The staff are very welcoming, and there are many
highly skilled teachers who open our vision and our minds
to the outside world. Thus having the opportunity to
further develop my English skills, that is the international
business language, especially in the shipping world.
I am proud of Stena's investment in Angola so that
students get the opportunity for career progression like I
have been gracious to get. Last but not least I am excited
for the opportunity to learn about team building and
aquire the skills I will need to do my job.
Jisilda Felicia Nguli, CFMA Deck Cadet
Although Angola has a vast coastline of over 1,000 miles;
sailing is still a new adventure and challenge to the
young generation.
With the establishing of the CFMA, trainees have the
opportunity to learn a combination of educational and
professional skills for the maritime sector.
One of the advantages of being part of CFMA staff is
to have the opportunity to interact with international
maritime training institutions and international shipping
companies such as Stena, which in turn provides a positive synergy that I believe can be productive and very
useful for all parties involved.
CFMA is making a significant contribution to the promotion of the maritime industry in Angola that will lead
to accreditation and be part of the IMO "White List".
Amarildio Vicente Manuel, CFMA Lecturer
STENA AB 2014
27
STENA AB > STENA TEKNIK
STENA TEKNIK
TECHNOLOGICAL DEVELOPMENT
FOR MAXIMUM PERFORMANCE
Stena Teknik is a technical resource for the marine parts of Stena. Thanks to the
vast and broad-based knowledge of its employees, the company can develop
solutions that make the business areas more competitive.
In Guangzhou, China, the construction of ten IMOIIMAX
product tankers, which started in 2013, is continuing. Stena
Teknik has staff on site to monitor the construction process
and ensure that the vessels are delivered with the right quality.
The IMOIIMAX vessels will be 25% more energy-efficient
than previous generations of vessels of a comparable size. This
is because the hull, propeller design and main engine have
been optimised for the vessels' intended use. These vessels
also offer significantly higher cargo flexibility than comparable
vessels, which brings major competitive advantages.
The first four vessels are being delivered to Stena Bulk, its
joint venture partner Golden Agri and Concordia Maritime
in 2015. At the end of 2014, the first of these vessels, Stena
Impression, underwent sea trials in the South China Sea and
was delivered in January 2015. Another four vessels will be
delivered in 2016 and the final two in the series in 2017.
For Stena Drilling, work continues on Stena MidMAX, a
semi-submersible drilling rig designed to withstand the North
Sea's harsh weather conditions. The North Sea has the strictest regulations in the world in terms of safety and working
conditions on board, and Stena MidMAX will easily meet all of
these requirements. Delivery of the unit is scheduled for 2016.
18
EMPLOYEES
28
STENA AB 2014
2
NEWBUILDINGS ON
ORDER
Development projects and environmental benefits
On 1 January 2015, new restrictions on sulphur emissions in
the SECA areas were introduced. Stena Teknik has worked
closely with Wärtsilä to develop methanol as an alternative
fuel. Wärtsilä has converted an engine for methanol operation, and tested it in Trieste with successful results. Stena
­Germanica is being converted to run on methanol and work
began in late January 2015. The vessel is expected to be able
to run fully on methanol in autumn 2015.
Another area of development Stena Teknik is working on
is the All Electric project. The company is working with
­Scandlines to examine the feasibility of converting vessels on
the Helsingborg-Helsingör route to electric operation, thereby
eliminating emissions and reducing noise. The technical
­challenges are primarily in recharging the batteries during the
short period when the ferry unloads/loads and finding a solution that supplies the port with sufficient power. Battery costs
are still a very large item in the calculation and EU funding has
been applied for in order to complete the project.
Energy-saving system
Stena's overall target is an annual reduction of 2.5% in energy
consumption per nautical mile. Stena Teknik is responsible for
the Stena Energy Efficiency Group which meets once a quarter. The project involves Stena RoRo, Stena Bulk, Northern
Marine Group and Stena Line, and its purpose is to ­collect and
share experiences and ideas between the companies about
how to save energy.
Stena Teknik is running a programme with Stena Line to
monitor fuel consumption on board. The system shows every
moment of a vessel's consumption and provides information
to the vessel's management who can then more easily adopt
measures that will allow a reduction in the vessel's energy
consumption.
The new IMOIIMAX series has been developed in collaboration between Stena Teknik
and Guangzhou S­ hipyard International
(GSI). A total of ten sister ships are being
built at the shipyard in China.
HARRY ROBERTSSON > TECHNICAL DIRECTOR
We continue our efforts to develop and improve
­maritime safety. Stena Teknik will examine how other
industries’ systems can be adapted for shipping. An
interesting area of study is how the support systems
being developed in the automotive industry can be
implemented to further increase safety on board.
STENA AB 2014
29
STENA AB > STENA TEKNIK > CASE IMOIIMAX
CASE
SHIPYARD COOPERATION
CREATES COMPETITIVENESS
Stena Impression is the first IMOIIMAX class vessel, the latest generation of fuel-efficient
­product and chemical tankers. She was christened in February 2015 and during the next two
years will be followed by nine sister ships from the Guangzhou Shipyard International (GSI)
shipyard in China. The cooperation between Stena and GSI has worked well, even when
Stena has set high standards.
JACOB NORRBY
Project Manager Stena Teknik
30
STENA AB 2014
"It is a known fact that GSI has a management team that sees responsiveness as a
competitive advantage," says Jacob Norrby, Stena Teknik's Project Manager for the
construction of the IMOIIMAX vessels.
"The yard is different from many others. They listen and have made every effort to
meet our requirements in both the design phase and during the actual construction."
To ensure the vessel type measured up to Stena's high requirements, Stena chose
to extend the design phase by one month in order to take advantage of the very
­latest technology.
"We were, for example, able to install the very latest model for the main engine,
developed for higher efficiency, thus allowing lower bunker costs. IMOIIMAX has
world-leading low energy consumption," says Jacob.
"In addition, the design with 18 cargo tanks makes the vessel very cargo-flexible.
As well as being able to transport everything from heavy oil to light chemicals,
­IMOIIMAX is optimised for a maximum intake of vegetable oils. The actual cargo
­system is very effective, leading to high capacity for loading, unloading and cleaning
of the tanks."
During the construction period, Stena Teknik is staffing an inspection office at GSI.
Lars Pennman has been the site manager, leading the process of daily inspections.
The team has included 13 inspectors and a secretary. The vast majority of inspectors
are from China.
"Working with GSI is enjoyable. Although we and GSI may have different views, a
laugh is never far away. However, it is a hard and focused job from the first round of
negotiations before a contract is signed until the delivery date – particularly during
the construction period – to ensure the quality of work is just as high as we expect,"
concludes Jacob Norrby.
18
CARGO TANKS PROVIDE
INCREASED CARGO FLEXIBILITY
EACH TANK
HOLDS
14
STENA TEKNIK'S TEAM
IN GUANGZHOU
WORLD-LEADING
LOW ENERGY CONSUMPTION
3,000 25%
CUBIC METRES
MORE ENERGY-EFFICIENT
than previous generations of vessels
of comparable size.
STENA AB 2014
31
STENA AB > STENA PROPERTY
STENA PROPERTY
DEVELOPING HOUSING AND
WORKPLACES OF THE FUTURE
Stena’s property operations are managed by Stena Fastigheter in Sweden and by Stena
Realty internationally. Its total owned and managed portfolio consists of 2.4 million
m², mainly in Sweden. With tenancy as its form of tenure, Stena Fastigheter develops
long-term, attractive residential environments and workplaces. The company's goal is
to be the first choice of tenants.
Stena Fastigheter is one of Sweden's leading property owners
with a total portfolio of 23,600 apartments and 3,100 commercial premises. The goal in terms of new construction is to
build 500 apartments a year, something which has been difficult to achieve in recent years. Stena Fastigheter has the land
and financial resources to initiate the construction of a large
number of apartments. Municipalities could contribute to a
higher degree through faster planning processes and affordable
land allocation.
In 2014, Stena Fastigheter completed 80 apartments in
Ängby Park, Stockholm, and in central Malmö. In addition,
construction of 322 apartments was initiated in Stockholm
and Lund. Stena Fastigheter's ambition is to work with an
innovation-oriented approach to create attractive new rental
units for all people.
Redevelopment of the Kvarngärdet area in Uppsala is continuing and when completed investments will have amounted to
MSEK 640. The last phase of the renovation will be finished in
2015, and at the same time new construction of properties will
begin in the same area of land which Stena Fastigheter already
owns. In order to obtain an attractive range of properties to suit
current demand, many smaller apartments are being built.
Renovation of Pennygången has started in Gothenburg. In
dialogue with the tenants, Stena Fastigheter has decided that
the renovation will be at basic level and that tenants can
choose optional extras. In this way, tenants can affect their
own standard and thereby having an influence over their rent.
Together, a viable solution has been reached both for those
who live in the area and for the Pennygången properties.
3,100
MSEK REVENUE
9%
SHARE OF GROUP
­REVENUE
32
STENA AB 2014
300
EMPLOYEES
RESIDENTIAL
29,000
MSEK CAPITAL
EMPLOYED
COMMERCIAL
23,600
3,100
In 2014, Stena Fastigheter, signed an agreement to buy the SCA building in Mölndal
center, which is under construction. The
property will contain 25,000 m2 of offices
and an innovation center for SCA.
CHRISTEL ARMSTRONG DARVIK > CEO
It has been difficult to reach production of 500 apartments, which means that we are pushing to speed up
municipalities' planning work and building permit
issues. Next year, it will be important for us to continue
developing effective building processes. The goal is to
offer newly built apartments for ordinary people.
We also continue to look for attractive acquisitions
while also renovating the existing portfolio. For example,
we are about to carry out a major conversion of our
hotel Sergel Plaza in Stockholm, which involves an
investment of several hundred million kronor.
STENA AB 2014
33
STENA AB > STENA PROPERTY
Relationship Management is an important part of Stena Fastigheter's business
and is aimed at creating safe, stable and
comfortable living environments.
RENTABLE SPACE BY CATEGORY
RENTABLE SPACE BY SUB-MARKET
Residential 70%
Commercial 30%
Göteborg 32%
Uppdateras
Stockholm 32%
Malmö 26%
Outside Sweden 10%
34
STENA AB 2014
When the first building is completed, an evaluation of the
­renovation will be made. The renovation will then continue in
consultation with the tenants. The City of Gothenburg has initiated a programme of work for the whole of Högsbohöjd
which allows for new construction in the area.
In 2014, Stena Fastigheter also signed an agreement to purchase a commercial property under construction in Mölndal
near Gothenburg. The property, which comprises office space
of 25,000 m2, is leased to SCA on a long-term contract. The
building is being constructed by NCC and is scheduled for completion in late 2016/early 2017 when access also will take place.
Stena Fastigheter has signed an agreement for the sale of
the Lövgärdet property portfolio in Gothenburg. The area
­consists of 1,277 apartments and about 30% of the area
­consists of commercial areas, which include a health center,
school, retirement home and shops.
In Stockholm, a property was sold to the tenants during the
year. The property, which has been reorganised as a housing
association, is the last building in a previous larger property.
Low interest rates combined with a stable market and high
demand means that many investors are turning to the property sector. For Stena Fastigheter, which owns and manages
properties on a long-term basis, this makes it difficult to find
new acquisitions at reasonable prices. Instead, the company is
investing in a large-scale new construction and upgrading of
the existing portfolio.
The project portfolio of SEK 11 billion covers investment
capacity during the next five to eight years.
During the year, Stena Fastigheter strengthened its
resources in IT, communication, Relationship Management
and project development. Stena Fastigheter in Gothenburg has
appointed Agneta Kores as its new MD.
International
In Houston, Texas, Stena Realty has completed one of the two
properties the company is building, in which a large part has
been leased to the consultancy company Jacobs Engineering.
The other property, which will be ready in the spring of 2015,
is fully leased to the chemical company Sasol. In total, the
investment is more than MUSD 100 and the two leases have
been signed on long-term contracts.
In Sophia Antipolis, France, the construction of premises
adjacent to the World Trade Center has started. They are
scheduled for completion in spring 2015 and half of them
have already been leased to GE Healthcare. Stena Realty
already owns 50,000 m2 in the same area.
The London market has recovered in full force. Stena Realty
has sold the property on Leman Street, which was acquired in
2012. The office property was sold for MGBP 41, at a substantial profit. In early 2015, another office building was sold for
MGBP 19, also at a substantial profit. After the sale, Stena
Realty owns two properties in London.
The market in the Netherlands is challenging and is still
dominated by high vacancy rates. By renovating properties to
a level that makes them more attractive than many competing
alternatives, Stena Realty's portfolio is easier to rent out. In
addition, the Dutch organisation has been strengthened with
a leasing resource and a number of larger premises have been
converted into smaller units or into apartments.
Community involvement beyond the norm
Long-term sustainability is a well-integrated part of the business. For many years, Stena Fastigheter has worked on Relationship Management (Relationsförvaltning®) to create safe,
stable and comfortable living environments. A large focus is
placed on school, work and stimulating leisure activities for
children and young p
­ eople. Stena Fastigheter strives to ensure
that pupils living in ­Stena's residential areas receive the best
education possible. Stena participates in projects to provide
homework preparation and meaningful employment. From
2014, Stena Fastigheter offers summer jobs to 300 young
people in the ­company's areas.
Stena Fastigheter uses relationships with contractors to
­create involvement with residents of the areas. For example,
during a contract, a painting company might agree to take on
a person from the area as an apprentice or trainee.
Stena Fastigheter's main environmental impact comes from
consumption of electricity, heating and hot water. The company's technical specialists monitor developments and take
advantage of new opportunities, such as geothermal and solar
energy solutions.
STENA AB 2014
35
STENA AB > STENA PROPERTY > CASE RELATIONSHIP MANAGEMENT
"THE YOUNG PEOPLE
ROSE TO THE CHALLENGE"
When Stena Fastigheter organised Bredäng Day in the company's residential area south of
­Stockholm in late May 2014, this was just one example of how Relationship Management
(Relationsförvaltning®) can manifest itself in practice. During the year, nine pupils worked
on different projects as part of efforts to increase engagement and satisfaction in the area.
DENNIS SÖDERMAN
Manager Stockholm
"One of my goals is getting to know the young people", says Dennis Söderman.
If I can do that, I get closer to their parents and together we get a better feel for
the neighbourhood." Dennis works as a manager in Stockholm, where he develops
a property area in Bredäng.
Relationship Management is Stena Fastigheter’s concept for sustainable living
environments where people thrive and stay longer. The focus is on children and
young people, and extra initiatives are now being made within schools. In Bredäng,
this is important as the area has been characterised by factors such as exclusion
and high unemployment.
"We approached the school to see what we could do together. The result was
that nine pupils worked on three projects during the year – a company presentation, preparation for the renewal of a playground and implementation of Bredäng
Day for the families in our neighbourhood", says Dennis.
Bredäng Day attracted many visitors
"We had bouncy castles, a quiz walk and different types of food. And because one
of the girls was interested in horses, she got to organise pony rides. The young
people really rose to the challenge. You could see how proud they were of their
Stena t-shirts when they took care of the visitors", said Dennis.
"The measure of appreciation was evident in all the comments we received!
Our tenants were super excited. Children in the area are still talking about the day,
and asking us what this year's Bredäng Day will be like."
For Stena Fastigheter, this is one way of create involvement within the residential
area, but it is also an opportunity to show what it means to work with service and
quality.
"If someone wants to try out working in the property sector, we are a good
employer. This is why we offer summer jobs for young people who live in our areas."
And last year, one of the summer workers stood out a little bit more.
"Marco stood out in a positive way. This summer we will be renovating the
­playground and three young people from the school project will get a summer job
to do it. Marco does not know yet, but I want him to take on a summer job as their
supervisor", concludes Dennis.
36
STENA AB 2014
HR Manager Maria Holmberg
talks about what it is like to
work at Stena Fastigheter.
IN 2014, 9 PUPILS
TOOK PART IN THE
SCHOOL PROJECT
The same number will be taking part in 2015.
STENA FASTIGHETER
CURRENTLY MANAGES
519
202 NEW BUILDINGS PLANNED
APARTMENTS IN BREDÄNG
75% WILL BE STUDENT HOUSING
The tenants speak many languages. This year,
the school project will be translating texts,
including laundry room rules into English,
Spanish and Kurdish.
This type of mixed accommodation
creates dynamism in the area.
STENA AB 2014
37
STENA AB > STENA ADACTUM
STENA ADACTUM
INCREASED SALES IN STABLE
PORTFOLIO COMPANIES
Stena Adactum is Stena’s wholly-owned investment company which invests in
both listed and unlisted companies with a long-term ownership perspective.
Through active ownership and financial strength, Stena Adactum builds strong
and profitable companies.
Stena Adactum consists of six subsidiaries and two publicly
listed associated companies. The subsidiaries’ aggregate revenue amounted to SEK 6.7 billion in 2014.
The sales trend over the last year has been positive and
Stena Adactum's portfolio companies continue to grow in
emerging markets, particularly in Asia. The focus is primarily
on investments in product development, and initiatives in the
areas of renewable energy and infrastructure solutions.
Through both organic growth and acquisitions, Stena
­Adactum's companies are well placed to continue to develop.
International expansion is achieved exclusively through the
portfolio companies, and with investments in product
­development and efficiency improvements, the companies
are well positioned to succeed in the increasingly fierce global
competition.
Ballingslöv International
Ballingslöv International is a leading supplier of kitchen,
­bathroom and storage systems marketed under ten brands
in eleven countries.
Growth is very strong in Sweden, the UK and Norway, while
the market in Denmark shows low growth.
In the UK, the integration of Manhattan Furniture and Paola
Rosa continued in 2014, and the companies are now fully
­integrated. Operations in the UK show an increased order
intake.
Kvik continued its expansion in Thailand during the year,
and the number of stores is now 16. The Thai market was
affected by political unrest during the first six months of the
year and this had a somewhat dampening effect on growth.
6
6,700
NUMBER OF SUBSIDIARIES
MSEK REVENUE
20%
SHARE OF GROUP
­REVENUE
38
STENA AB 2014
7,100
MSEK CAPITAL
EMPLOYED
3,000
EMPLOYEES
2
NUMBER OF PARTLY OWNED
ASSOCIATED COMPANIES
Ballingslöv AB, one of the companies in
Ballingslöv International, has about 350
employees and more than 500 vendors
at partners in Scandinavia.
MARTIN SVALSTEDT > CEO
In the next few years, Stena Adactum will be primarily
affected by movements of Nordic electricity prices,
­construction activity globally, consumption trends in the
Nordic region and the pace of recovery for the European
economy. Stena Adactum is mainly expanding its operations through our portfolio companies, which create
growth through business acquisitions, new establishments and stronger customer offerings. All portfolio
companies are expected to continue to have very good
growth potential. Investments in new operations are
­regularly evaluated and we have created financial capacity
to make further investments. The main focus in recent
years has been to expand and strengthen the profitability
of existing operations. The aim is to continuously build
our financial strength so that we can continue to develop
and support the expansion of our operations.
History has shown the importance of being an industrially active, long-term and strong owner. The stability that
we are now experiencing creates scope for product development and sound investments. Stena Adactum's main
focus is to work on long-term industrial development to
build strong companies.
STENA AB 2014
39
STENA AB > STENA ADACTUM
Envac
Envac is a leading global company, supplying automatic waste
collection systems for multi-family housing, hospitals and airports, as well as optical sorting systems for household waste.
Envac has operations in 21 countries with offices in 38 cities.
The order intake has shown positive growth during the year,
particularly in Asia but also in Northern Europe. By contrast,
order growth in Southern Europe and South America has been
slower. The order book stood at SEK 2.8 billion at the end of
2014, which is an increase from 2013.
In New York, development of the Hudson Yards is in progress, and this is the largest private real estate project in US
history. Envac has been contracted for a waste management
system that will handle 24 tonnes of waste each day.
The new product Envac Quantum was successfully launched
during the year. The new system is more compact, more
energy efficient and offers more storage space than the
­alternatives.
S-Invest (Blomsterlandet)
The S-Invest Group consists of Blomsterlandet, a chain of 51
Swedish garden centers offering a broad range of plants and
supplies for the home and garden, and S-Blommor, a retailer
with a shop-in-shop flower concept. A new unit was opened
in Gothenburg during the year.
Blomsterlandet developed well during the year, largely due
to a strong spring in terms of sales, and profitability improved.
Blomsterlandet's customer loyalty club, Green Room, continues to grow rapidly and now has over 400,000 members.
Stena Renewable
Stena Renewable has developed from a wind power project
business to an established energy company and Sweden’s
­largest wind power producer. Ten new wind turbines with a
capacity of 17 MW was built in 2014 and will be commissioned in early 2015. This will bring the number of wind
t­ urbines to 96, with a combined capacity of 236 MW and a
production capacity of 0.7 TWh, which corresponds to consumption of household electricity in the city of Malmö.
Production in 2014 was about 10% lower than in a normal
year. Technical availability during the year was high, but light
winds during the second and third quarters had an adverse
effect on production.
Demand for electricity is characterised by the fact that
industry, for structural and cyclical reasons, is showing a
decreasing need for electricity. At the same time, household
electricity consumption is stable, with the effect of increasingly efficient household electronics being offset by increasing
numbers of electrical appliances.
In the longer term, there is large and growing demand for
environmentally friendly electricity. However, today's electricity
market is characterised by overcapacity, which affects electricity prices and certificates. This means that Stena Renewable is
holding back on new investment decisions. With its competitive project portfolio, Stena Renewable is well equipped for
the future.
The expansion of wind power has often been of great
importance to the local economy. Stena Renewable builds
wind power for ownership and strives for long-term relationships with municipalities, local entrepreneurs, associations and
the public.
Mediatec Broadcast
Mediatec Broadcast is one of Europe's premier TV production
companies for live broadcasts. They broadcast p
­ rogrammes
from international entertainment and sporting events worldwide.
Several large contracts were renewed during the year, such
as the Swedish ice hockey league and Premier league Swedish
football. At the same time, a number of new contracts were
awarded, including German basketball, Austrian hockey and
Swiss football.
Subsidiaries
40
STENA AB 2014
A leading manufacturer of
kitchen interiors in Scandinavia
and the UK.
World leader in the development
and sale of automated waste
collection systems.
Revenue: MSEK 3,054
CEO: Anders Wassberg
Number of employees: 1,391
Stena’s holding: 100%
Revenue: MSEK 1,003
CEO: Christer Öjdemark
Number of employees: 623
Stena’s holding: 100%
www.ballingslovinternational.com
www.envacgroup.com
Sweden’s leading garden
­centers.
Develops, owns and operates
large wind farms in Sweden.
Revenue: MSEK 1,473
CEO: Jan Larsson
Number of employees: 595
Stena’s holding: 100%
Revenue: MSEK 369
CEO: Peter Zachrisson
Number of employees: 14
Stena’s holding: 100%
www.blomsterlandet.se
www.stenarenewable.com
In addition, Mediatec Broadcast's studio broadcast productions have included the Winter Olympics in Sochi and the
World Cup in Brazil.
Mediatec Broadcast strengthened its position in motor sport
during the year through the acquisition of Finnish Filmworks, a
European leader in live motor sport broadcasts.
Mediatec Solutions
Mediatec Solutions provides large screen technology at sporting events and major corporate events. In addition, Mediatec
Solutions supplies large LED installations for outdoor advertising and other purposes.
In 2014, the company was responsible for big screens at
events such as Håkan Hellström's concert at Ullevi, the Eurovision Song Contest in Copenhagen and at the international
launch of the new Volvo XC90.
increased to 43%. The need for increased security and cash
handling in the world works in Gunnebo's favour.
Midsona
Midsona is a branded health product company with a strong
position in the Nordic countries.
During the year, Midsona successfully continued its efforts
to develop strong brands in personal care, realise synergies
from acquisitions and implement cost savings, and this
­contributed positively to the company's results. Towards the
end of the year, Norwegian company Soma Nordic AS was
acquired, further strengthening Midsona's position in health
food.
REVENUE BY PORTFOLIO COMPANY, %
Gunnebo
Gunnebo is an International Group that provides integrated
security solutions.
The company has had positive growth in both revenue and
earnings in all regions during the year. Efforts to adapt the
Group's costs in Europe have continued with positive results.
The movement of the Group's center of gravity towards
emerging markets continues. Revenue outside Europe
Ballingslöv 23%
Mediatec 6%
Envac 8%
Gunnebo 42%
S-Invest 11%
Midsona 7%
Stena Renewable 3%
Total revenue in our subsidiaries and associated companies: SEK 13.2 billion
Total number of employees in our subsidiaries and associated companies: 8,788
Associated companies
Mediatec Broadcast
A European leader in media
technology such as live
broadcast TV production.
Mediatec Solutions
Displays and technological
­solutions for trade shows
and events.
Revenue: MSEK 476
CEO: Paul Henriksen
Number of employees: 159
Stena’s holding: 63%
Revenue: MSEK 369
CEO: Kenneth Paterson
Number of employees: 169
Stena’s holding: 63.5%
www.mediatecgroup.com
www.mediatecgroup.com
An international Group that
­provides integrated security
­solutions.
A leader in consumer healthcare
in the Nordic region.
Revenue: MSEK 5,557
CEO: Per Borgvall
Number of employees: 5,670
Stena’s holding: 26%
Revenue: MSEK 920
CEO: Peter Åsberg
Number of employees: 167
Stena’s holding: 25%
(23.5% of capital)
www.gunnebo.com
www.midsona.com
STENA AB 2014
41
STENA AB > STENA ADACTUM > CASE WIND POWER
NECESSARY, EFFICIENT AND
­ENVIRONMENTALLY FRIENDLY
In June 2014, ten new wind turbines were opened in Fredriksdal, south of Nässjö. The commissioning
in early 2015 means that Stena Renewable now operates 96 wind turbines – and there are another
180 in the project portfolio.
PETER ZACHRISSON
CEO Stena Renewable
42
STENA AB 2014
Peter Zachrisson, CEO of Stena Renewable, is enthusiastic about the future of wind power.
"Wind power is necessary, efficient and environmentally friendly! Sweden and the
­Nordic countries are on the threshold of a major transition in energy production. Much of
the existing production is old and needs to be replaced in the future, and there is no new
power generation as cost-effective and environmentally friendly as wind power," says
Peter Zachrisson.
"We want to be part of this energy transition. Despite being a young company,
we have a broad experience in project development, which allows us to develop cost-­
effective wind power projects."
The electricity certificate system is a market-based support system aimed at increasing
production of renewable electricity in a cost effective way. At present, prices of electricity
and electricity certificates are low. This is because new power is being added while old
production remains in the system.
"To ensure availability of electricity, the new and environmentally friendly power generation is built first so that the old system can be gradually phased out. At the same time,
we are seeing a decline in demand for industrial electricity, which is depressing prices of
electricity. Electricity certificate prices are also low, as a result of the strong expansion of
wind power in recent years," says Peter.
Stena Renewable is delaying construction of new wind farms until electricity and
certificate prices are higher, and this change could happen quickly.
Stena Renewable has invested SEK 3 billion since 2012.
"At the right electricity and certificate prices, we could invest another SEK 6 billion
within two years. One of the initiatives under discussion is the construction of 16 new
wind turbines in the municipality of Lekeberg, north of Örebro. These could be the first
of the new projects."
In a longer perspective, wind power will only be affected by electricity prices – not
­certificates.
"But the certificates have been effective. Thanks to them, energy companies have
invested in wind power thereby increasing electricity production. The increased supply
has led to lower electricity prices and the gain has turned out to be higher than the
­electricity certificate charge households had to pay. For electricity-intensive industries,
the situation has been even better as they do not pay for electricity certificates. Investments in electricity certificates have brought increased energy production with a low
environmental impact!"
STENA RENEWABLE
WAS FORMED IN
2005
WHEN IT WAS SPUN OFF
FROM STENA ADACTUM
THE WIND FARM GENERATES
10 WIND TURBINES
IN FREDRIKSDAL
9% OF STENA RENEWABLE'S
ELECTRICITY PRODUCTION
Each of the turbines is 150 metres high.
Stena Renewable's total electricity production
­corresponds to household electricity
­consumption in Malmö.
STENA AB 2014
43
STENA AB > STENA FINANCE
STENA FINANCE
FINANCIAL STRENGTH
0FFERS FLEXIBILITY
Stena Finance’s main task is to manage the funding requirements of the Stena Group, both
short and long term. Stena Finance also manages the operational business units’ financial risks
in the interest rate, currency and oil markets. In addition, Stena Finance manages the Group’s
liquidity and financial investments. Another important role is to act as a resource for the
­operational units when identifying and analysing new business deals.
The global economy continued to climb further during 2014,
mainly led by the United States. Activity in the US economy
has been steadily expanding and continues to show much
strength. Households financial situation has become stronger
thanks to debt deleveraging and growing wealth. An increasingly strong labour market will probably lead to gradually
higher wages and the first US increase in Interest Rate in many
years is now approaching. The euro zone, on the other hand,
is suffering from weak demand as well as weak growth and
structural problems, which is why the European Central Bank
has cut policy rates to zero and is signaling that additional
monetary easing can be necessary.
There is good potential for a solid growth in most Asian
emerging markets. Strong labour markets are helping to drive
domestic demand. An important issue for the Asian economies
is how big deflationary effect the weak Japanese yen will have.
LIQUIDITY1)
Cash & cash
equivalents 20%
Equities 14%
Fixed income 16%
1) S tena AB Group as of 31 December 2014
STENA AB 2014
Liquidity and financing
Stena Finance’s task is to optimise the Group’s loan and bond
profile and to manage liquidity in such a way that there are
sufficient resources available when the loans and bonds
mature. To achieve this, Stena Finance maintains a high level
of liquidity, which ensures that the group’s cash flow requirements would be safeguarded if access to international capital
were to be cut off.
INTEREST-BEARING LIABILITIES1)
Unutilised
credit lines 51%
44
During 2014, the eastern European economies were hurt by
the Russian decelerating growth, its import ban and a sharp
fall in oil prices.
The Swedish economy is showing a healthy performance led
by domestic demand offset by flattish trend in export sector as
well as that Riksbanken lowered the interest rate close to zero.
Sweden has a solid financial position and expects further
growth acceleration during 2015.
Other bank loans 56%
Real estate loans 21%
Leasing liabilities 1%
Bond loans 22%
INVESTMENT PORTFOLIOS1)
Adactum
(listed shares) 13%
CDO’s/CLO’s 9%
Fixed income 39%
Long Term equity 15%
Other equities 24%
In January 2014, Stena issued a ten-year MUSD 600 unsecured note in the US to extend its amortisation profile and
reduce debt under the revolving credit facility. In February
2014, Stena issued a ten-year MUSD 350 note and a MUSD
650 seven-year term loan with a low capital repayment rate.
The bond and the loan is secured by the vessels Stena DrillMAX and Stena Carron. This transaction was also designed to
extend Stena’s maturity profile and free up more liquidity.
In 2013, Stena Drilling contracted two semi-submersible
drilling rigs for MUSD 800 each with option to cancel one
unit. In July 2014, the financing (MUSD 574) arrangement
was concluded for one rig.
Liquidity also opens up good, long-term investment opportunities in equities and bonds.
Stena AB is funded largely through the banking system and
the European and US bond markets. Together with credit
­facilities and vessel loans, this generates good financial
strength and flexibility. Total available liquidity as of 31
December 2014 was SEK 17.7 billion.
Thanks to successful new financing, the Group’s financial
position continues to be very strong.
Portfolio management
During the year, Stena reduced its exposure to the oil and gas
sector which helped to prevent the losses from falling stock
markets in this sector. Management of financial investments
experienced a modest result in 2014 with an average return of
3%. Bonds and other alternative investments performed well,
with a return higher than comparable index.
The equity portfolio consisted of around 50 companies
which are listed on Nordic, European, U.S. and Asian markets.
The total value of Stena Finance’s equity and bond portfolio
was SEK 6,4 billion as at 31 December 2014, compared with
SEK 5,7 billion on 31 December 2013.
PETER CLAESSON > CEO
We are very pleased with the capital market activities
we conducted in spring 2014. The extension of our
amortisation profile and strengthening of our liquidity
further consolidates our financial position. The investment activity is planned to be reduced, while our
strong liquidity increases our financial flexibility. Our
new bond issues, long-term financing and locked­-in
future cash flow leave the company very well equipped
for the future.
STENA AB 2014
45
STENA AB > FLEET OVERVIEW
VESSELS
STENA LINE VESSELS OWNED AND CHARTERED AS OF 31 DECEMBER 2014
Name
Route
Vessel type
Passengers
Lanemetres
Stena Saga
Oslo–Frederikshavn
Night ferry
2,000
1,032
Stena Carisma
Göteborg–Frederikshavn
HSS
900
151 cars +10 buses
Stena Danica
Göteborg–Frederikshavn
Day ferry
2,274
1,640
Stena Jutlandica
Göteborg–Frederikshavn
RoPax
1,500
2,100
Stena Scanrail
Göteborg–Frederikshavn
RoPax
36
1,000
Scandinavia
Stena Nautica
Varberg–Grenaa
RoPax
900
1,265
Aurora af Helsingborg
Helsingborg–Helsingør
Day ferry
1,250
539
Hamlet
Helsingborg–Helsingør
Day ferry
1,000
553
Mercandia IV
Helsingborg–Helsingør
Day ferry
385
290
Mercandia VIII
Helsingborg–Helsingør
Day ferry
385
290
Stena Germanica III
Göteborg–Kiel
RoPax
1,300
3,800
Stena Scandinavica IV
Göteborg–Kiel
RoPax
1,300
3,800
Skåne
Trelleborg–Rostock
RoPax
600
3,295
Mecklenburg–Vorpommern
Trelleborg–Rostock
RoPax
600
3,100
Trelleborg
Trelleborg–Sassnitz
RoPax
848
1,189
Sassnitz
Trelleborg–Sassnitz
RoPax
1,000
1,071
Stena Vision
Karlskrona–Gdynia
RoPax
1,300
2,214
Stena Spirit
Karlskrona–Gdynia
RoPax
1,300
2,214
Stena Baltica1)
Karlskrona–Gdynia
RoPax
210
2,188
Scottish Viking2)
Nynäshamn–Ventspils
RoPax
880
2,250
Stena Flavia
Travemünde–Ventspils
RoPax
880
2,255
Ask
Travemünde–Liepaja
RoPax
186
1,598
Urd
Travemünde–Liepaja
RoPax
186
1,598
Germany
Baltic Sea
North Sea
Stena Hollandica III
Hoek van Holland–Harwich
RoPax
1,200
5,500
Stena Britannica III
Hoek van Holland–Harwich
RoPax
1,200
5,500
Severine
Rotterdam–Harwich
RoRo
12
1,760
Capucine
Rotterdam–Harwich
RoRo
12
1,760
Stena Transporter
Hoek van Holland–Killingholme
RoPax
300
4,056
Stena Transit
Hoek van Holland–Killingholme
RoPax
300
4,056
Stena Scotia
Rotterdam–Killingholme
RoRo
12
1,692
Stena Adventurer
Holyhead–Dublin
RoPax
1,500
3,400
Stena Nordica
Holyhead–Dublin
RoPax
405
1,950
Stena Superfast X
Chartered to DFDS
RoPax
1,200
1,924
Stena Explorer
Holyhead–Dun Laoghaire
HSS
1,500
1,100
Stena Europe
Fishguard–Rosslare
RoPax
1,400
1,120
Stena Superfast VII
Cairnryan–Belfast
RoPax
1,200
1,924
Stena Superfast VIII
Cairnryan–Belfast
RoPax
1,200
1,924
Stena Lagan
Belfast–Liverpool
RoPax
970
2,250
Stena Mersey
Belfast–Liverpool
RoPax
970
2,250
Stena Performer
Belfast–Heysham
RoRo
12
2,166
Stena Precision
Belfast–Heysham
RoRo
12
2,166
Stena Hibernia
Belfast–Heysham
RoRo
12
1,692
Irish Sea
1) B
areBoat Charter
2) TimeCharter
46
STENA AB 2014
STENA RORO VESSELS OWNED AND CHARTERED AS OF 31 DECEMBER 2014
Name
Built
Passengers
Lanemetres
RoPax
Norman Asturias
2007
800
2,250 (+ 195 cars)
Blue Puttees
2006
1,000
2,800
Highlanders
2007
1,000
2,800
Stena Feronia1)
1997
536
2,150
Etretat
2008
800
2,250 (+ 195 cars)
1,800
SNAV Adriatico2)
1986
1,200
Stena Alegra
1998
399
1,950
Stena Egeria
2001
950
2,050
Trinacria
2002
950
2,040
Partenope
2002
950
2,040
Stena Baltica ex Cotentin3)
2007
210
2,188
2,250
RoRo
Mont Ventoux
1996
12
Ark Forwarder
1998
12
2,715
Stena Foreteller
2002
12
3,000
Stena Forecaster
2003
12
3,000
Stena Forerunner
2003
12
3,000
Stena Freighter
2004
12
2,715
Stena Carrier
2004
12
2,715
1) S old January 2015
2) S old through hire-purchase
3) Chartered to Stena Line
STENA DRILLING DRILLING UNITS OWNED AS OF 31 DECEMBER 2014
Name
Type/Generation
Water depth
Position
Singapore
Stena Clyde
Semi, 3rd generation
1,640 ft
Stena Don
DP (dynamically positioned) semi, 5th generation
1,640 ft
Norway
Stena Spey
Semi, 3rd generation
1,500 ft
North Sea
Stena DrillMAX
Deepwater DP drillship for harsh worldwide environments, including Norway,
6th generation
10,000 ft
Ghana
Stena Carron
Deepwater DP drillship for harsh worldwide environments, including Norway,
6th generation
10,000 ft
Canary Islands
Stena Forth
Deepwater DP drillship for harsh worldwide environments, including Norway,
6th generation
10,000 ft
Gulf of
Mexico
Stena IceMAX
Deepwater DP drillship for harsh world-wide environments and ice infested
waters, including Norway, Polar Class 5, 6th generation
10,000 ft
Gulf of
Mexico
Stena MidMAX I 2)
DP & moored semi for harsh worldwide environments, including Norway,
6th generation
6,600 ft
TBD
Stena MidMAX II 2) 3)
DP & moored semi for harsh worldwide environments, including Norway,
6th generation
6,600 ft
TBD
1)
1) U
pgraded semi 2nd generation semi-submersible
2) N ewbuilding
3) C
ancellation right
STENA AB 2014
47
STENA AB > FLEET OVERVIEW
STENA BULK VESSELS OWNED, CHARTERED AND MANAGED AS OF 31 DECEMBER 2014,
INCLUDING NEWBUILDINGS
Name
Built
Dwt
Stena Superior
2011
158,000
Stena Supreme
2012
158,000
Stena Sunrise
2013
158,000
Stena Suède
2011
158,000
Sonangol Cabinda
2013
157,500
Sonangol Huila
2012
157,500
Class
Suezmax
Sonangol Kalandula
2011
157,500
Sonangol Rangel
2011
158,000
Sonangol Kassanje
2005
150,000
Sonangol Luanda
2000
150,000
Sonangol Kizomba
2001
150,000
Sonangol Namibe
2007
150,000
Sonangol Porto Amboin
2012
157,500
Princimar Pride
2012
158,000
Princimar Integrity
2012
158,000
Princimar Courage
2013
158,400
AST Sunshine
2013
158,000
Montestena
2012
158,000
Almi Explorer
2013
157,800
Almi Navigator
2013
150,000
Yasa Polaris
2009
158,500
Yasa Southern Cross
2010
158,000
Yasa Scorpion
2010
158,500
Nordic Rio
2004
152,000
DP Class
Navion Gothenburg
2006
152,000
DP Class
Stena Spirit
2001
149,995
DP Class
Stena Alexita
1998
127,535
DP Class II
Stena Sirita
1999
126,671
DP Class II
Stena Natalita
2001
108,073
DP Class II
Stena Arctica
2005
116,500
Ice Class 1A Super
Stena Atlantica
2006
113,600
Ice Class 1A
Stena Clear Sky
2011
96,890
LNG, 173,000 cbm
Stena Crystal Sky
2011
96,890
LNG, 173,000 cbm
Stena Blue Sky
2006
83,668
LNG, 145,500 cbm
2004
72,825
Shuttle
Aframax
LNG
Panamax
Stena Chiron
48
STENA AB 2014
Name
Built
Dwt
Class
Medium Range, MR
Stena Paris
2005
65,125
P-MAX Ice Class 1B
Stena Performance
2006
65,200
P-MAX Ice Class 1B
Stena Perros
2008
65,200
P-MAX Ice Class 1B
Stena President
2007
65,200
P-MAX Ice Class 1B
Stena Progress
2009
65,200
P-MAX Ice Class 1B
Stena Provence
2006
65,125
P-MAX Ice Class 1B
Stena Primorsk
2006
65,200
P-MAX Ice Class 1B
Stena Penguin
2010
65,200
P-MAX Ice Class 1A
Stena Polaris
2010
65,200
P-MAX Ice Class 1A
Stena Premium
2011
65,200
P-MAX Ice Class 1B
Stena Conqueror
2003
47,400
S-47 Class
Stena Concert
2004
47,136
S-47 Class
Stena Conquest
2003
47,136
S-47 Class
STI Regina
2014
49,990
Stenaweco Energy
2014
49,737
ST Katharinen
2013
50,259
49,990
Exelsior Bay
2014
STI St Charles
2014
50,265
STI Wembley
2014
38,464
STI Yorkville
2014
50,265
STI Mayfair
2014
50,265
STI Milwaukee
2014
49,999
Silver Gwen
2014
49,855
Silver London
2014
49,855
STI Finchley
2014
38,464
Aldebaran
2013
37,571
STI Battery
2014
49,990
STI Soho
2014
49,990
Crystal Bay
2014
49,990
STI Poplar
2014
38,734
Ridgebury Cindy
2008
17,527
Gan-Triumph
2010
49,999
Amalienborg Ex Su
2004
40,059
Kronborg
2007
40,208
Atlantic Breeze
2007
47,128
Grazia
2010
50,308
Istra
2012
51,824
Kastav
2009
52,610
Maersk Magellan
2010
51,556
Navig8 Strength
2009
49,999
Pula
2006
46,927
STENA AB 2014
49
STENA AB > FLEET OVERVIEW
Contd. Stena Bulk
Name
Built
Dwt
Pomer
2011
52,579
Velebit
2011
52,554
Vinjerac
2011
52,554
Stenaweco Spirit
2012
49,995
Stenaweco Venture
2012
49,995
Star Eagle
2007
49,906
Star Kestrel
2008
49,930
Stenaweco Julia L
2013
49,600
Stenaweco Marjorie K
2013
49,600
Stenaweco Gladys W
2013
49,600
St Marien
2007
51,218
Resolve
2004
46,048
Klass
MR Pat Brown
2009
50,096
Torm Gertrud
2002
50,000
Torm Mary
2002
50,000
Stena Impression1)
2015
49,400
IMOIIMAX
Stena Imperial1)
2015
49,400
IMOIIMAX
Stena Important1)
2016
49,400
IMOIIMAX
Stena Imperative1)
2016
49,400
IMOIIMAX
Stenaweco Impulse1)
2016
49,400
IMOIIMAX
Stena Imagination1)
2016
49,400
IMOIIMAX
Stena Immortal1)
2016
49,400
IMOIIMAX
Stena Immaculate1)
2017
49,400
IMOIIMAX
Stena Impeccable1)
2017
49,400
IMOIIMAX
Stena Image1)
2015
49,400
IMOIIMAX
2002
9,996
Coaster
Stena Calypso
Intermediate
Golden Adventure
2009
9,599
Golden Avenue
2009
9,599
GSW Future
2009
17,527
GSW Forward
2008
17,527
GSW Fighter
2008
17,527
GSW Frontier
2009
17,527
GSW Fabulous
2008
17,527
Vestholmen
2009
15,527
Oceanic Cobolt
2008
13,224
Oceanic Cyan
2008
13,241
Global Vika
1999
16,408
Ji Xiang
2011
16,863
Ece Nur K
2009
19,988
1) Newbuilding
50
STENA AB 2014
C-MAX
PROPERTIES
PROPERTIES OWNED AND MANAGED AS OF 31 DECEMBER 2014
Number
Rentable area, m2
Properties
Residential
Commercial
Göteborg
96
8,780
682
Malmö
92
6,325
671
Stockholm
125
8,465
1,279
Total
312
23,570
2,632
Residential
Commercial
Total
Total, %
606,739
156,027
762,766
32
448,977
158,299
607,276
26
598,879
157,135
756,014
32
1,654,595
471,461
2,126,056
90
Sweden – Stena Fastigheter
International – Stena Realty
37
230
136,180
136,180
6
France
Netherlands
6
118
47,637
47,637
2
US
3
35
37,247
37,247
2
UK
3
16
8,029
8,029
Germany
2
44
11,598
11,598
Other
2
2
7,662
7,662
Total
53
445
248,352
248,352
10
Total
365
1,654,595
719,813
2,374,408
100
70%
30%
100%
Rentable area, m2
Occupancy rate, %
23,570
3,077
Market value of owned property portfolio as of 31 December 2014: SEK 29.4 billion
Occupancy rates as of 31 December 2014
Sweden
Residential properties
Commercial properties
1,445,224
99.1
368,386
83.5
248,352
73.9
International
Commercial properties
STENA AB 2014
51
STENA SPHERE
STENA SPHERE
The Stena Sphere consists of Sten A Olsson family’s three wholly-owned parent
companies Stena AB (publ), Stena Sessan AB and Stena Metall AB, and wholly
and partly-owned subsidiaries of these companies. The partly-owned company
Concordia Maritime AB (publ) is listed on Nasdaq Stockholm and 52% of the
company is owned by Stena Sessan AB. The Stena Sphere generated total
revenue of MSEK 55,968 in 2014. Income before tax amounted to MSEK 2,832.
STENA SPHERE
BUSINESS AREAS
STENA LINE
Offshore drilling
Revenue MSEK 8,425
Income MSEK 758
STENA DRILLING,
SHUTTLE TANKERS
SHUTTLE TANKERS
Shipping
Revenue MSEK 3,572
Income MSEK 14
STENA BULK, STENA RORO,
STENA TEKNIK, NMG
CONCORDIA MARITIME (52%)
Property
Revenue MSEK 3,139
Income MSEK 1,578
STENA FASTIGHETER,
STENA REALTY
New businesses
Revenue MSEK 6,696
Income MSEK 331
STENA ADACTUM
Recycling, environmental
­services and trading
Revenue MSEK 23,724
Income MSEK (39)
STENA AB 2014
STENA SESSAN AB
Ferry operations
Revenue MSEK 12,246
Income MSEK (60)
Finance/other
Revenue MSEK 65
Income MSEK 251
52
STENA AB (PUBL)
STENA FINANCE
STENA METALL AB
MEDA (20.7%)
BEIJER ELECTRONICS (29.8%)
STENA METALL FINANCE
STENA METALL
THE YEAR IN SUMMARY
NUMBER OF EMPLOYEES
IN STENA SPHERE
STENA SPHERE – REVENUE AND INCOME
MSEK
MSEK
20,000
4,000
60,000
15,000
3,000
45,000
10,000
2,000
30,000
5,000
1,000
15,000
0
0
0
10
11
12
13
14
2.8
SEK BILLION
– SPHERE’S INCOME BEFORE TAX
10
11
12
13
Income before tax
Revenues
14
60%
19,000
EMPLOYEES
STENA AB’S SHARE
OF REVENUE
STENA SPHERE – REVENUE AND INCOME
Revenue
MSEK
Income before tax
2013
2014
2013
2014
Stena AB Group
30,240
33,563
2,148
2,799
Stena Metall Group
25,404
23,724
(213)
(39)
Concordia Maritime
468
531
(20)
8
50
50
200
64
Stena Sessan
Sphere eliminations
(1,753)
(1,900)
(12)
Total
54,409
55,968
2,103
2,832
STENA AB 2014
53
STENA SPHERE > CONCORDIA MARITIME
CONCORDIA MARITIME AB (PUBL)
CONTINUING FOCUS ON
VESSEL OPTIMISATION
Concordia Maritime is an international tanker shipping company focused on cost-­effective
freight and safe transportation of refined petroleum products and vegetable oils. The company’s
B shares were admitted to trading on Nasdaq Stockholm in 1984. For Concordia Maritime, 2014
was very much concerned with implementation of the company’s new employment strategy.
The backbone of Concordia Maritime’s fleet is the ten P-MAX
tankers. The tankers combine transport economy and flexi­
bility with safety of the highest class. Eight of the tankers are
ice class 1B and two are ice class 1A. Three are IMO III classified, which means they can also carry vegetable oils and
lighter chemicals.
The newbuilding programme consists of the two 50,000
dwt product and chemical tankers Stena Image and Stena
­Important, which were ordered in 2012 and are scheduled for
­delivery during 2015. The vessels will be among the most
sophisticated on the market. Stena Image and Stena Important
will be employed within the Stena Weco system.
As a complement to the product tanker segment, Concordia
Maritime is also active in the transportation of crude oil. The
presence in the suezmax segment is represented by the tanker
Stena Supreme and two 50% chartered vessels (158,000 dwt
each).
410
EMPLOYEES1)
1) Of whom 404 seagoing and 6 shore-based
54
STENA AB 2014
14
TANKERS
Events during the year
Significant events during the year included the sale of the
­panamax vessels (LR1), Stena Poseidon and Palva, which were
owned in a 50-50 joint venture with Neste Oil. The gain on
the sale was realised in the second quarter and contributed
strongly to the year’s positive result.
For Concordia Maritime, 2014 was otherwise largely concerned with positioning and arranging the fleet in line with
the company’s new employment strategy. The overall aim has
been – and still is – to optimise vessel utilisation, thereby creating the best possible conditions for good profitability. A fundamental aspect of this process has involved concentrating
employment on trades and cargo systems where the P-MAX
vessels’ unique properties come into their own.
The work has been partly successful and has resulted in half
of the company’s lighter products vessels being employed on
To obtain more information and
a copy of Concordia Maritime’s
annual report please visit:
www.concordiamaritime.com
In terms of length and draft, P-MAX vessels
are comparable with a standard MR tanker.
The unique design of the hull enables the
­vessels to carry up to 30% more cargo.
different niche trades during the year. Stena Paris, for ­example,
sailed on one of Total’s niche trades from Southeast Asia to
Polynesia, where her extremely shallow draft was of particular
benefit. Stena Provence and Stena Polaris were contracted by
ExxonMobil for six months of the year for consecutive transportation of refined petroleum products in the Asia Pacific
region. P-MAX tankers were also able to successfully take
advantage of the increased demand for transportation of
light products between Europe and West Africa in the fourth
quarter. Here too, the utilisation rate was high in terms of the
vessels’ load capacity.
At the end of the year, Concordia Maritime and Stena Bulk
established a pool for four P-MAX tankers that will transport
heavy petroleum products, primarily in the Atlantic market.
The pool enables the company to optimise incentives for
­efficient vessel utilisation. Two of the vessels in the pool were
chartered out to Stena Bulk on one-year contracts at the end
of the year.
At the end of 2014 and in early 2015, two positions were
taken in Stena Bulk’s suezmax fleet corresponding to 50%
charters of two tankers. The increased exposure to the crude
oil segment reflects continuing confidence in the segment,
which made a strong start to 2015.
Signs of a positive market
There has also been a strong start to 2015 for product tankers
and, looking at the market as a whole, several factors indicate
that the positive trend will continue. In particular, the changes
taking place in the refinery area, with a shift from European
predominance to the Middle East and Asia, is resulting in
increased transport distances.
At the same time, a large number of vessels will be delivered in the coming year. However, our overall assessment is
that the market will, despite this, continue to develop in a
­positive direction during 2015 and 2016.
KIM ULLMAN > CEO
Our focus in 2015 will be on continued positioning
and employment of the fleet based on our strategy
and given market conditions. Our overall assessment
is that the market will continue to develop in a positive direction during 2015 and 2016. We shall also be
taking delivery of the two new IMOIIMAX vessels
­during the year. We have high hopes that their high
load flexibility and energy efficiency will help us
deliver good profitability – thereby creating scope for
continuing growth.
STENA AB 2014
55
STENA SPHERE > STENA METALL
STENA METALL
INVESTING IN RECYCLING
OF THE FUTURE
As one of the three parent companies in the Stena Sphere, the Stena Metall
Group has ­operations in around 220 locations in eleven countries. The Group
is a leading and innovative recycling company that collects, processes and
recycles all types of waste. The Group also produces aluminum from recycled
raw materials, supplies steel products, conducts financial operations and
trades in steel, non-ferrous metals and oil.
During the 2013/2014 financial year, the effects of the last
two years’ action plan could be seen, with significantly
improved results for the Group as a whole and for the majority
of business areas. In every case, this was due to improvement
measures and strong business acumen rather than improved
factors outside the business. The action plan has required
­considerable changes to the business structure of a majority of
the Group’s companies. For example, Business Area Electronics
Recycling has adjusted its workforce, divested unprofitable
businesses and closed a number of facilities. Facilities were
also shut down and consolidated in several recycling markets
with a view to reducing costs, streamlining and concentrating
competence.
3,400
EMPLOYEES
56
STENA AB 2014
5,000,000
TONNES OF WASTE
RECYCLED
Conditions remained weak in the Stena Metall Group’s core
markets. In Sweden, incoming volumes increased marginally
while other recycling markets remained at low levels. Prices for
the majority of the Group’s key raw materials were relatively
stable.
Acquisition of modern recycling facility
In September 2013, the Group acquired a property in
­Halmstad with the aim of creating Sweden’s most modern
recycling facility. This is the Group’s single largest investment
for several years, and some production started in autumn
2014. A new shredder facility was also opened in Huddinge
during the financial year. These significant production
220 LOCATIONS
IN 11 COUNTRIES
7
BUSINESS AREAS
From 2015, 95% of a car’s weight must be recycled; this is an ­important
and exciting challenge for the recycling industry. At the shredder facility
in Huddinge, Stena Recycling has invested in the latest technology in
order to extract a greater number of clean fractions than ever before.
In just 30 seconds, a car is ground down and the elements sorted into
four fractions that become raw materials for steel mills and smelters
and are ultimately manufactured into new products.
i­nvestments are important for recycling operations, customers
and the environment as modern, highly efficient recycling
technology makes it possible to recycle more material while
consuming less energy. This is in line with the Group’s ambition to be at the leading edge of sustainability work and to
continue developing and investing in the latest recycling
­technology.
The Group is continuing to invest in improving competence,
particularly in product and material knowledge. There is also
ongoing, long-term work to streamline sales and marketing
activities within the Group. The aim is to strengthen industry
and customer-specific solutions in order to meet the needs of
new customers while adding value for existing ones.
Visit www.stenametall.com for
more information and to download
the annual report.
ANDERS JANSSON > CEO
With continued focus on internal improvements and
financial discipline, I expect that we will continue
to strengthen our market position. At the start of
2014/2015, I cannot see any significant improvements
in conditions outside the company and the Stena
Metall Group must adapt to a world of weak growth.
Barring any unforeseen circumstances, I expect that
the measures we have implemented will lead to
improved results in the 2014/2015 financial year.
STENA AB 2014
57
STENA SPHERE > STENA SESSAN
STENA SESSAN
EVENTFUL YEAR WITH
INCREASED NET ASSET VALUE
Stena Sessan was founded when Stena acquired the Sessan Line in the early 1980s. As one of
three parent companies, Stena Sessan is one of the cornerstones of the Stena Sphere. The
­company’s investment activities are characterised by a long-term perspective and commitment.
Stena Sessan is the principal owner of the pharmaceutical company Meda, the industrial
­enterprise Beijer Electronics and Concordia Maritime, and also runs a small shipping business.
Stena Sessan’s investment philosophy is to monitor and
develop the companies through long-term and committed
ownership of a diversified portfolio of assets. The company
also owns 50% of two shuttle tankers, Stena Sirita and Stena
Spirit, together with a Canadian shipping company. Overall,
the investments have been successful. During the last year,
the net asset value has increased to just over SEK 8 billion.
Meda acquired the Italian pharmaceutical company Rottapharm during the year. When the acquisition was conducted,
it was the largest acquisition by a Swedish company since
2009. With this acquisition, Meda has developed into Europe’s
largest specialty pharmaceutical company, with a market
capitalisation of just under SEK 40 billion.
58
STENA AB 2014
The purpose of the transaction was to take advantage of
synergies valued at just under SEK 1 billion, while the enabling
the company to develop its product portfolio and gain access
to new markets.
Beijer Electronics divested its US automotive business during
the year. The sale is in line with its strategy to invest more
resources in the global core business. The company has also
decided to expand the Industrial Data Communication business
area, with major investments in R & D and the international
sales force over the next three years.
Concordia Maritime is described on pages 54–55 of the
Annual Review.
Subsidiaries
Associated companies
Vessels
Concordia Maritime AB (publ) is an
international tanker shipping company focused on cost-effective and
safe transportation of refined petroleum products and vegetable oils.
Beijer Electronics AB (publ) is an expansive technology company specialising
in industrial automation and data communication, which markets competitive
products and solutions.
MEDA AB (publ) is a leading international pharmaceutical company. Meda’s
products are sold in 120 countries
around the world and it has its own
organisations in over 50 countries.
Revenue: MSEK 531
CEO: Kim Ullman
Number of employees: 410
Stena Sessan’s holding: 52.3%
Revenue: MSEK 1,401
CEO: Anna Belfrage
Number of employees: 760
Stena Sessan’s holding: 29.8%
Revenue: MSEK 15,352
CEO: Jörg-Thomas Dierks
Number of employees: approx. 4,600
Stena Sessan’s holding: 20.7%
www.concordiamaritime.com
www.beijerelectronics.se
www.meda.se
Stena Spirit
Shuttle tanker1)
Stena Sirita
Shuttle tanker1)
1) 50%-owned
Through the acquisition of Rottapharm in 2014, Meda has gained access
to a portfolio of strong brands in the area of clinically proven personal
care products (Cx). These are non-prescription products that doctors
and pharmacists recommend to consumers, and represent a stable and
profitable segment.
MARTIN SVALSTEDT > VD
Stena Sessan’s main business is to develop our existing
portfolio companies and also to evaluate new investment opportunities. Through long-term ownership
and financial strength, coupled with business expertise, we contribute to growth and value creation in
our portfolio companies.
STENA AB 2014
59
STENA SPHERE > ORGANISATION
STENA AB BOARD
Dan Sten Olsson
CEO
Lennart Jeansson
Chairman
Lars Westerberg
Anne-Marie Pouteaux
Gunnar Brock
Christian Caspar
Mia Brunell Livfors
William Olsson
Deputy
Mahmoud Sifaf
Employee representative
Jörgen Lorén
Employee representative
Pia Carlsson
Employee representative, deputy
AUDITORS
Peter Clemedtson Authorised Public Accountant
Johan Rippe Authorised Public Accountant
60
STENA AB 2014
SPHERE ADVISORY BOARD
Samir Brikho
Peter Claesson
Carl-Johan Hagman
Michael F. Hassing
Roger Holtback
Staffan Hultgren
Lennart Jeansson
Ray Miles
Dan Sten Olsson
Eivind Reiten
THE STENA SPHERE ADVISORY BOARD ADVISES ON
 keeping the Sphere together and ensuring value creation
 the consequences of change and its implementation
 management issues and support for the CEO
 evaluating established goals and performance
 balancing risks against opportunities in a short-, medium- and long-term perspective
STENA AB 2014
61
STENA SPHERE > ORGANISATION
COORDINATION GROUP
Christel Armstrong Darvik
Peter Claesson
Carl-Johan Hagman
Staffan Hultgren
Anders Jansson
Dan Sten Olsson
Martin Svalstedt
Tom Welo
Eva Hansdotter
THE STENA SPHERE COORDINATION GROUP REPRESENTS THE MANAGEMENT OF EACH BUSINESS AREA, AND
 is responsible for the Sphere’s strategic development
 supports the appreciation of the Sphere’s value
 evaluates major investment/divestment proposals from the business areas
 provides information on important events
 ensures the Sphere’s development through cross-fertilisation
 maintains and develops the Sphere’s shared values
62
STENA AB 2014
STENA AB 2014
63
STENA AB > FINANCIAL STATEMENTS
THE FINANCIAL YEAR
IN SUMMARY
The year in summary
• Another year of high operational performance in all
­business areas.
• Continuing operational growth.
– Total income was SEK 33.6 billion, compared with
SEK 30.2 billion in 2013.
– Consolidated EBITDA (operating income before depreciation and amortisation), net of investment property valuations and sales of assets, was the highest ever, at SEK 9.3
billion, an increase of 21% compared with 2013.
– The increase in EBITDA was largely due to improved
­performances by all business areas compared with 2013,
in particular Drilling, Ferry operations and Shipping.
– Income before tax amounted to SEK 2.8 billion, compared
with SEK 2.1 billion in 2013. The figures include net gains
on the sale of assets of MSEK 212 and MSEK 76, respectively.
• Healthy balance sheet with an equity/assets ratio of 31% as
of 31 December 2013.
• Ferry operations showed an improved EBITDA, excluding
restructuring expenses of MSEK 314, compared with 2013.
This was achieved through strategic acquisitions, tonnage
changes and continuing improvements in current operations.
The focus during the year was to increase the revenues on
our routes while continuing to review the business and
­implement cost improvement measures.
• Stena Drilling had another strong year, showing improved
results compared with the previous year and an average
­commercial utilisation rate of just over 98%.
•Stena Bulk showed a marked improvement in its results
­compared with 2013, largely due to a stronger tanker market.
The LNG segment generated good earnings in 2014 as a
result of strong contracts and high utilisation of the fleet.
•Stena RoRo continued its high utilisation and was also
engaged in chartering out or selling vessels no longer
employed in Stena Line’s operations.
•Stena Property continued to show profitability, with a very
high occupancy rate which averaged 94%.
64
STENA AB 2014
•Stena Adactum had another successful year for all of the
portfolio companies, with results in line with the previous
year. The portfolio companies continued to grow in the
emerging markets, notably in Asia.
•The Group’s liquidity was strong during the year and the
maturity profile of our credit facilities was extended.
Significant business events
Ferry operations
In January 2014, the RoPax vessel Stena Superfast X (formerly
Dieppe Seaways) was acquired. The vessel is a sister ship to
Stena Superfast VII and Stena Superfast VIII.
In April 2014, Stena Line acquired the Rosslare (Ireland) –
Cherbourg (France) business. The route will help to develop
Stena Line’s route network and strengthen its strategic position in Ireland.
Stena Line continued its efforts to improve profitability by
optimising tonnage during the year.
The successful floating border shop concept was introduced
on the Scandinavian routes in 2014. The concept has been
much appreciated by our travellers.
Offshore drilling
On 21 November, Statoil cancelled the three-year charter for
the drillship Stena Carron. Stena has received compensation of
MUSD 276 for the remaining contract period.
In December 2014, our contract for Stena Forth was renegotiated with Hess. The new contract runs until Q2 2017, with
an option for a further one-year extension.
Bulk
At the beginning of the year, Golden Stena Weco, a joint
­venture between Stena Weco and Golden Agri-Resources,
took delivery of the five vessels purchased in 2013.
The Rio de Janeiro office was closed down during the year
in response to fewer shipments from customers in Brazil.
In December 2014, Stena Bulk divested its 35% ownership
interest in Paradise Tankers, covering co-ownership of three
Panamax vessels. In connection with the transaction, Stena
Bulk acquired one of the tankers.
RoRo
In spring, the RoPax vessel Etretat was delivered to French
ferry operator Brittany Ferries on a new bareboat charter.
The RoPax vessel Stena Egeria was completed at a Chinese
shipyard and delivered to Bohai Sea Ferries during June for
employment on a service linking China and Korea.
The RoPax vessels Partenope and Trinacria had their periods
of employment with the existing customer extended until April
2015.
In late autumn 2014, a new agreement was signed with
Interislander of New Zealand, under which the RoPax vessel
Stena Alegra will undergo an extensive upgrade and refur­
bishment prior to the commencement of a five-year bareboat
charter. The vessel will be delivered in the second quarter of
2015.
New charters for Stena Foreteller, Stena Forecaster and
Stena Forerunner were signed in December 2014.
Other shipping
In July 2014, it was decided to discontinue the route between
Sokcho in South Korea and Zarubino and Vladivostok in Russia.
Adactum
Stena Adactum had another successful year and continued to
develop and expand its business areas.
Property
A property in London was sold for MGBP 41 in July and a
property in Stockholm was sold for MSEK 245 in November.
In 2014, Stena Fastigheter completed 80 apartments in
Ängby Park, Stockholm, and in central Malmö. In addition,
construction of 322 apartments was also initiated in Stockholm and Lund.
In 2014, Stena Fastigheter signed an agreement to purchase
a commercial property under construction in Gothenburg for
MSEK 868. The property, which comprises office space of
25,000 m2, is leased to SCA on a long-term contract. The
building is expected to be completed in late 2016/early2017.
The occupancy rate in 2014 was high, averaging 94%. In
Sweden, the occupancy rate for residential properties was
about 99% and for commercial properties about 90%. The
average occupancy rate abroad was about 77% due to a weak
Dutch market.
Finance
A ten-year bond of MUSD 600 was issued in January 2014.
The purpose of the transaction was to extend our maturity
profile and repay the principal amount outstanding under the
existing credit facility.
In February 2014, an additional ten-year bond issue of
MUSD 350 was implemented and MUSD 650 was issued in
a Term Loan B, which is a seven-year loan with a low rate of
amortisation. Collateral for both the bond and the loan
­consists of the units Stena DrillMAX and Stena Carron. The
purpose of this transaction was to extend the existing amortisation profile and release more liquidity.
The financing for the semi-submersible rig Stena MidMAX
was completed in July 2014.
Subsequent events
On 9 January 2015, Stena AB Group and Scandlines signed a
contract for the sale of the Helsingborg–Helsingør ferry route
to a European infrastructure fund managed by First State
Investments. Helsingborg–Helsingør had been jointly operated
(50-50 ownership) by Stena AB Group and Scandlines. First
State European Diversified Infrastructure Fund FCP-SIF took
over the route at the end of January 2015. The sale includes
the five vessels operating on the route. The sale generated a
capital gain of about SEK 1.6 billion for Stena AB Group, and
this will be recognised in the first quarter of 2015.
In January 2015, an agreement was signed for the sale of
Stena Feronia for MEUR 23. The vessel will be delivered in late
March/early April.
In February, Marine Atlantic exercised its purchase option
for the Stena vessels Highlanders and Blue Puttees, amounting
to MEUR 69 for each vessel, with deliveries scheduled for
December 2015 and February 2016.
In February, a property in London was sold for MGBP 19.
In February 2015, the newly built IMOIIMAX vessel Stena
Impression was delivered from the Samsung shipyard in South
Korea.
In February 2015, the vessel Stena Calypso, was sold for
MSEK 9.6 through a lease-purchase agreement.
The route between Holyhead and Dun Laoghaire was
­discontinued in February 2015.
Properties in Göteborg were sold for MSEK 925 in March
2015.
At the end of March, Stena Adactum signed an agreement
to sell the Mediatec companies. The buyer is the company
NEP, which operates in the same industry. The transfer is
expected to take place during May.
STENA AB 2014
65
STENA AB > FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
1 January–31 December
2013
MSEK
2014
MSEK
Revenues
Ferry operations
11,164
12,196
Drilling
7,146
8,425
Shipping
2,568
3,041
Property
2,564
2,566
Adactum
6,453
6,696
Other
Total revenues
Net gain on sale of assets
Total other income
Changes in fair value of investment properties
Total revenue
REVENUES AND
INCOME BEFORE TAX
MSEK
3,200
MSEK
32,000
45
65
29,940
32,989
2,400
24,000
76
212
1,600
16,000
800
8,000
76
212
224
362
30,240
33,563
0
0
11
10
Direct operating expenses
(8,520)
(9,075)
Drilling
(3,036)
(3,496)
(1,553)
Shipping
(1,503)
Property
(847)
(835)
Adactum
(4,338)
(4,538)
(8)
(8)
Total direct operating expenses
13
14
Income before tax
Ferry operations
Group-wide expenses
12
(18,252)
(19,505)
Gross profit
11,988
14,058
Selling and administrative expenses
(3,965)
(4,201)
Depreciation and amortisation
(4,136)
(4,992)
3,887
4,865
(1,739)
(2,066)
Income before tax
2,148
2,799
Income taxes
(238)
(408)
Net income
1,910
2,391
1,914
2,401
Revenues
EBITDA
excluding asset sales
MSEK
10,000
7,500
Income from operations
Financial net
5,000
2,500
0
10
11
12
13
14
Net income attributable to:
Equity holders of the Parent Company
Non-controlling interests
Net income
(4)
(10)
1,910
2,391
29,940
32,957
Profit and loss for Stena AB Group according to internal reporting1)
Total revenue
Net gain on sale of assets
Total revenue
EBITDA
Depreciation and amortisation
Income from operations
Financial net
Income before tax
119
249
30,059
33,206
7,653
9,258
(4,309)
(5,150)
3,344
4,108
(1,739)
(2,055)
1,605
2,053
1) Excluding adjustment for investment properties according to IAS 40
STENA AB 2014
67
STENA AB > FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
31 December
2013
MSEK
2014
MSEK
4,155
4,278
Assets
EQUITY AND
DEFERRED TAXES
Total intangible assets
Tangible fixed assets
Vessels
MSEK
50,000
40,956
46,141
Construction in progress
2,450
3,944
Equipment
3,930
4,270
Land and buildings
962
1,111
3,261
3,689
Total tangible fixed assets
51,559
59,155
Investment property
27,831
29,367
Investments accounted for using equity method
1,473
1,434
Investments in SPEs
4,311
8,112
TOTAL ASSETS
Other securities held as non-current assets
4,243
4,847
MSEK
160,000
Other non-current assets
40,000
Ports
30,000
20,000
10,000
0
10
11
12
13
14
Financial fixed assets
Surplus in funded pension plans
120,000
160
163
3,205
5,222
Total financial fixed assets
13,392
19,778
Total non-current assets
96,937
112,578
80,000
Current assets
40,000
0
10
11
12
13
14
Short-term investments
1,694
1,248
Cash and cash equivalents
2,053
3,506
Other current assets
Total current assets
Total assets
7,528
8,485
11,275
13,239
108,212
125,817
Balance sheet for Group according to internal reporting1)
Assets
Intangible assets
3,934
4,024
19,213
19,686
Other tangible fixed assets
51,602
59,442
Total tangible fixed assets
74,749
83,152
Investment property
Total financial fixed assets
13,140
19,767
Total non-current assets
87,889
102,919
Total current assets
11,433
13,371
Total assets
99,322
116,290
1) Excluding adjustment for investment properties according to IAS 40
68
STENA AB 2014
31 December
2013
MSEK
2014
MSEK
35,274
38,978
Equity and liabilities
Total equity
Non-current liabilities
3,940
3,860
Pensions and similar commitments
Deferred tax liabilities
649
668
Other provisions
707
667
45,287
43,290
Liabilities to credit institutions
Liabilities in SPEs
3,944
7,540
Senior notes
5,324
13,093
Capitalised lease obligations
642
553
Other non-current liabilities
722
3,946
61,215
73,617
4,616
2,998
Total non-current liabilities
Current liabilities
Liabilities to credit institutions
Cash and cash equivalents
Other current assets
Total current liabilities
Total equity and liabilities
231
233
6,876
9,991
11,723
13,222
108,212
125,817
29,137
32,887
Balance sheet for Group according to internal reporting1)
Equity and liabilities
Total equity
Deferred tax liabilities
2,149
1,987
Other non-current liabilities
56,422
68,280
Total non-current liabilities
58,571
70,267
Total current liabilities
11,614
13,137
Total equity and liabilities
99,322
116,290
1) Excluding adjustment for investment properties according to IAS 40
STENA AB 2014
69
STENA AB > FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
1 January–31 December
2013
MSEK
2014
MSEK
Net income
1,910
2,391
Adjustment for non-cash items
4,030
4,547
Cash flow from operating activities
before changes in working capital
5,940
6,938
Operating activities
Changes in working capital
Cash flow from operating activities
(923)
2,660
5,017
9,598
(147)
(156)
Investing activities
Investments in intangible assets
Proceeds from sale of tangible fixed assets
Investments in tangible fixed assets
Acquisition of subsidiary, net of acquired cash
534
734
(7,022)
(5,696)
(13)
(27)
7,505
5,375
(5,084)
(8,059)
(392)
(658)
Decrease in other non-current assets
12
168
Other investments
24
6
(4,583)
(8,313)
Proceeds from sale of securities
Investments in securities
Increase in other non-current assets
Cash flow from investing activities
Financing activities
Proceeds from issuance of debt
3,676
15,668
(4,946)
(8,535)
Net change in borrowings on line-of-credit agreements
1,228
(6,621)
Principal payments on capitalised lease obligations
(238)
(249)
Principal payments on debt
Net change in restricted cash accounts
484
510
(189)
(220)
Other financing activities
(34)
(518)
Cash flow from financing activities
(19)
35
Dividends paid
Effect of exchange rate differences on cash and cash equivalents
Net change in cash and cash equivalents
70
STENA AB 2014
57
133
472
1,453
Cash and cash equivalents at beginning of year
1,581
2,053
Cash and cash equivalents at end of year
2,053
3,506
GROUP SUMMARY
MSEK
Total revenue
2010
2011
2012
2013
2014
27,150
27,968
27,388
30,240
33,563
EBITDA, excluding assets sales
7,073
6,512
7,060
7,947
9,646
Income from operations
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 associated companies’ results
Income before tax
Vessels
28,753
34,185
40,708
40,956
46,141
Investment property
24,148
25,753
26,658
27,831
29,367
Other non-current assets
37,070
29,842
27,494
26,412
28,150
Cash and cash equivalents and 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
Equity including deferred tax liabilities
Other provisions
Other non-current liabilities
Current liabilities
Total assets
Cash flow from operating activities
5,065
4,895
5,034
5,017
9,598
Cash flow from investing activities
(9,681)
(5,579)
(11,553)
(4,583)
(8,313)
Cash flow from financing activities
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
Net change in cash and cash equivalents
Number of employees, average
Number of vessels1)
1) Including owned and chartered vessels
STENA AB 2014
71
WWW.STENA.COM
STENA AB (PUBL)
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
BALLINGSLÖV
INTERNATIONAL AB (PUBL)
STENA RORO AB
Jungmansgatan 12
SE-211 19 Malmö
Telephone +46 (0)40 627 08 00
www.ballingslovinternational.com
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
www.stenaroro.com
INTERNATIONAL COMPANIES
LUXEMBOURG
STENA TEKNIK
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
AB STENA FINANS
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
STENA ADACTUM AB
Rosenlundsgatan 3
Box 7123
SE-402 33 Göteborg
Telephone +46 (0)31 85 50 00
www.stenaadactum.com
S-INVEST TRADING AB
Box 36056
SE-400 13 Göteborg
Telephone +46 (0)31 755 73 00
www.blomsterlandet.se
ENVAC AB
Group Head Office
Fleminggatan 7
SE-112 26 Stockholm
Telephone +46 (0)8 785 00 10
www.envac.net
STENA RENEWABLE AB
Stena Renewable Energy AB
Box 7123
SE-402 33 Göteborg
Telephone +46 (0)31 85 50 00
www.stenarenewable.com
Stena International S.A.
26b, Boulevard Royal
LU-2449 Luxembourg
Telephone +352 26 48 67 00
NETHERLANDS
Stena Holland B V
Burgemeester Haspelslaan 61
NL-1181 NB Amstelveen
Telephone +31 20 426 16 16
SWITZERLAND
Stena (Switzerland) AG
Bahnhofplatz
CH-6300 Zug
Telephone +41 41 728 81 21
UNITED KINGDOM
Stena (UK) Ltd
45 Albemarle Street
GB-London W1S 4JL
Telephone +44 20 74 09 01 24
CHINA
Stena Rederi AB Beijing
Representative Office
66 Fen Xiang, 100081 Xin Xiang
Beijing 100081
P R China
Telephone +86 10 8447 6572
CYPRUS
Stena Holding (Cyprus) Ltd
Lophitis Business Centre II
28 October street
4th floor, office no. 401
CY-3035 Limassol
Telephone +357 25 871 207
HUNGARY
STENA BULK
Stena Hungary
Ady Endre utca 15
H-2724 Ujlengyel
Telephone +36 29 385 676
SWEDEN
Stena Hungary
Dohány utca 12, 2nd Floor
H-1074 Budapest
Telephone +36 13 28 69 51
SOUTH KOREA
Stena Korea Ltd
2 nd fl. Alpha Bldg,
44 Teheran-ro 8-gil
Gangnam-gu
Seoul 135-935
STENA DRILLING
UNITED KINGDOM
Stena Drilling Ltd
Ullevi House
Greenbank Crescent
East Tullos
GB-Aberdeen AB12 3BG
Telephone +44 1224 40 11 80
www.stena-drilling.com
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
www.concordiamaritime.com
72
STENA AB 2014
US
Stena Bulk LLC
2727 Allen Parkway,
Suite 760
US-Houston, TX 77019
Telephone +1 713 874 5960
SINGAPORE
Stena Bulk AB
Singapore Branch
6 Temasek Boulevard,
Unit 44-01
Suntec Tower 4
SG-Singapore 038986
Telephone +65 6336 5953
DENMARK
NORWAY
Stena Weco A/S
Rungsted Strandvej 113
DK-2960 Rungsted Kyst
Telephone +45 45 177 700
Stena Drilling AS
Kjøpmannsgata 24 C
Postbox 194
NO-7501 Stjørdal
Telephone +47 74 84 03 70
NORTHERN MARINE
GROUP
UNITED KINGDOM
US
Stena Drilling
– Marketing office
2727 Allen Parkway
14th floor
US-Houston, TX 77019
Telephone +1 713 973 77 11
OTHER COMPANIES IN THE STENA SPHERE
CONCORDIA MARITIME
AB (PUBL)
Stena Bulk AB
Masthuggskajen
SE-405 19 Göteborg
Telephone +46 (0)31 85 50 00
www.stenabulk.com
STENA METALL AB
STENA SESSAN AB
Fiskhamnsgatan 8
Box 4088
SE-400 40 Göteborg
Telephone +46 (0)10 445 00 00
www.stenametall.com
Rosenlundsgatan 3
Box 2181
SE-403 13 Göteborg
Telephone +46 (0)31 85 50 00
www.stenasessan.se
Northern Marine
Management Ltd
Alba House
2 Central Avenue
GB-Clydebank, G81 2QR
Telephone +44 141 876 3000
www.nmm-stena.com
Northern Marine
Ferries Ltd
6 Murdoch Drive,
Clydebank Business Park
GB-Clydebank, G81 2QQ
Telephone: +44 141 876 3200
RUSSIA
Northern Marine Management
USA LLC
2727 Allen Parkway
Suite 760
US-Houston, TX 77019
Telephone +1 713 874 6100
Stena Marine Management LLC
Italyanskaya str 6/4, office 8,
St. Petersburg
Telephone +7 812 570 0546
AUSTRALIA
Northern Marine Australia Pty
14 Kearns Crescent
Applecross
AU-Perth, WA 6153
Telephone: +61 8 9317 9019
PHILIPPINES
Northern Marine
Management (Manila)
c/o Philippines Transmarine
Carriers Inc.
First Maritime Place
7458 Bagtican Street
San Antonio Village
PH-1203 Makati City
Telephone +632 898 1111
INDIA
Northern Marine
Management (India) Pvt Ltd
301/302, Delphi, ‘B’ Wing
Orchard Avenue
Hiranandani Business Park
Powai
IN-Mumbai – 400 076
Telephone +91 22 6751 5200
SINGAPORE
Stena Marine Singapore Pte Ltd
78 Shenton Way #12–01
Singapore 079120
Telephone +65 6323 2066
CHINA
Stena Marine Shanghai Co Ltd
Room 2906, United Plaza
1468 West Nanjing Road
Jingan District,
CN-Shanghai 200040
P R China
Telephone: +86 21 6230 6773
STENA PROPERTY
SWEDEN
Stena Fastigheter AB
Stena ­Fastigheter Göteborg AB
Box 31157
SE-400 32 Göteborg
Telephone +46 (0)75 241 50 00
www.stenafastigheter.se
Stena Fastigheter
Malmö AB
Stortorget 9
SE-211 22 Malmö
Telephone +46 (0)75 241 50 00
Stena Fastigheter
Stockholm AB
Box 16144
SE-103 23 Stockholm
Telephone +46 (0)75 241 50 00
NETHERLANDS
Stena Realty BV
Burgemeester Haspelslaan 61
NL-1181 NB Amstelveen
Telephone +31 20 426 16 16
www.stenarealty.com
FRANCE
Stena Bureaux SARL
WTC – Les Crêtes
Sophia Antipolis/Nice/ Côte d’Azur
1300 Route des Crêtes
Parc de Sophia – Antipolis
FR-06560 Valbonne
Telephone +33 (0) 4 93 95 89 96
www.stenarealty.com
STENA LINE
SWEDEN
UNITED KINGDOM
Stena Line
Stena House,
Station Approach
Holyhead, Gwynedd
GB-Wales LL65 1DQ
Telephone +44 1407 60 66 66
Stena Line Scandinavia AB
Danmarksterminalen
SE-405 19 Göteborg
Telephone +46 (0)31 85 80 00
www.stenaline.com
Stena Line Limited
Suite 4, First Floor
Pluto House
19-33 Station Road
Ashford, Kent
UK, TN23 1PP
Telephone +44 1233 64 86 28
Stena Line Travel Group AB
Bredgatan 5
Box 1324
SE-251 13 Helsingborg
Telephone +46 (0)42 37 85 00
Stena Line Onboard Services AB
Galoppgatan 4
SE-213 77 Malmö
Stena Line
The Ferry Terminal 4
West Bank Road
GB-Belfast BT3 9JL
Northern Ireland
Telephone +46 (0)31 85 89 50
DENMARK
Stena Line Denmark A/S
Box 723
DK-9900 Frederikshavn
Telephone +45 96 20 02 00
Telephone +44 28 90 88 40 40
IRELAND
Stena Line
Alexandra Road
Dublin Port
Dublin 1
Telephone +353 1 855 32 77
NORWAY
Stena Line Norge AS
Akershusstranda 53
Postboks 764, Sentrum
NO-0106 Oslo
Telephone +47 02010
LATVIA
Stena Line
4a Gredu Street
LV-1019 Riga
POLAND
Stena Line Polska SP
Terminal Promowy
ul.Kwiatkowskiego 60
PL-81-156 Gdynia
Telephone +48 58 660 92 00
NETHERLANDS
Stena Line BV
Stationsweg 10
P.O.Box 2
NL-3150 AA Hoek van Holland
Telephone +31 174 38 93 33
GERMANY
Stena Line GmbH & Co. KG
Zum Fährterminal 1
Überseehafen
DE-18147 Rostock
Telephone +49 (0)381 20 35 54 55
Solberg.
Photos and images: Katja Andersson, Dan Ljungsvik,
Peter Mild, Per-Anders Hurtigh, Johan Palmborg et al.
Printing: Falk Graphic.
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DIC
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US
3041 0165
PRINTED MATTER
Care
Innovation
Performance
Stena AB (publ)
SE-405 19 Göteborg, Sweden
Telephone +46 (0)31 85 50 00
www.stena.com