Interim Report 1 January–30 June 2007
Broström AB (publ) – Reg. no. 556005-1467
• Volatile freight market during first half of the year
- European traffic showed a continued stable trend during the second quarter, but with a seasonal decline towards the end of the period.
- Asian traffic was characterised by continued favourable development during the second quarter.
- Atlantic traffic developed well during the second quarter.
• Profit after net financial items for Q2 SEK 247 m (65). This includes SEK 107 m (9) of capital gains related to sales of vessels and operations and dissolution of negative goodwill.
- Net sales were SEK 915 m (769, of which 23 pertains to sold subsidiaries).
- Profit after tax was SEK 236 m (61).
- Earnings per share were SEK 3.60 (0.93).
• Profit after net financial items for the first six months SEK 419 m (375). This includes SEK 109 m (99) of capital gains related to sales of vessels and operations and dissolution of negative goodwill.
- Net sales were SEK 1,841 m (1,734, of which 96 pertains to sold subsidiaries).
- Profit after tax was SEK 386 m (317).
- Earnings per share were SEK 5.86 (4.80).
- Return on capital employed was 15.5% (13.4).
• Cash flow and disposable liquidity for the first six months
- Cash flow per share was SEK 8.75 (5.94).
- Disposable liquidity amounted to SEK 1,299 m (1,110 on 31 December 2006).
- The dividend payout was SEK 258 m.
• Strategic acquisition in Asia
- Acquisition of Petroships Group, which operates a fleet of nine small and intermediate product tankers in Southeast Asia.
• Substantial surplus value of fleet, newbuilding contracts and call options on vessels
- Fleet valuations have continued to increase adding to the overvalue of approximately SEK 2.5 billion as per 31 December 2006.
• Outlook
The spot market during the start of the third quarter of 2007 in Broström’s market segment was characterised by a downturn. However, structural changes in the market and widening regional imbalances are resulting in a continued greater need for transport in Broström's segment. Investments and acquisitions carried out in 2006 and 2007 are having an increasingly positive impact on earnings. The outlook for 2007 as a whole continues to be positive and Broström’s strategic position has been further strengthened for 2008 and onwards.