Interim Report first half year

INTERIM REPORT FOR CONCORDIA MARITIME AB (publ) 1.1 - 30.6 2002 · Result after financial net SEK -86.0 (141.7) million · Large-tanker market still very weak · Freight rates for Group's VLCCs and ULCCs below breakeven · Stena Vision and Stena Victory - V-MAX tankers' time-charter contracts generate good profits and cash flow · Positive cash flow provided by operating activities · Forecast for 2002 unchanged: SEK -125 million · Concordia wins first prize for best annual report in journal Aktiespararen CONCORDIA'S BUSINESS ACTIVITIES Business concept To provide our customers with safe tanker transportation based on innovation and performance. Tonnage We are currently at a stage where our older quality vessels are gradually being sold for conversion into offshore structures for offshore storage and processing of oil. At the same time, Concordia took delivery last year of two of the world's most advanced large tankers with a concept based on double safety functions and large cargo capacity. Concordia is continuing to develop and refine this concept. SALES AND RESULT Consolidated sales amounted to SEK 402.7 (657.6) million for the first six months. The result after financial items was SEK -86.0 million (141.7). The result per share after tax was SEK -1.86 (2.97) and SEK -1.83 (2.75) after full conversion. Sales are distributed geographically over the following markets (in %): US 43 (41), UK 21 (11), Saudi Arabia 19 (25), India 5 (0), South Africa 4 (9), China 3 (0), Japan 2 (6) and others 3 (8). The distribution of net sales is based on the respective customer's domicile. The Parent Company's sales totalled SEK 9.6 (1.3) million. Intergroup invoicing accounted for SEK 9.5 (1.2) million of this amount. Large-tanker market The freight market for large-tanker tonnage continued to be very weak during the second quarter. OPEC continued to limit its production with the aim of maintaining the price level and has lost market shares to oil producers outside OPEC. This, in combination with the weak world economy, has resulted in lower demand for oil transportation from the Middle East and is the cause of the weak tanker market. The total available transport capacity in the VLCC segment remained unchanged during the period. Additional capacity in the form of newbuildings was compensated by older vessels being scrapped. In the weak market, there has been resistance to older tonnage with charterers choosing mainly modern double-hulled tonnage. FREIGHT MARKET FOR VLCCs, JANUARY, 1998 - JUNE, 2001 USD/day - Modern tonnage - - Turbine tankers [REMOVED GRAPHICS] Source: Platou V-MAX The Group's two V-MAX VLCCs, the Stena Vision and the Stena Victory, continue to operate efficiently and smoothly on the West Africa-US East Coast trade. They are signed to profitable time-charter contracts, which expire in mid-2004. VLCC and ULCC During the 6-month period, the freight rate for the Group's four VLCCs was approx. USD 6,500 (33,500) per day, including waiting days. This hardly covers daily running costs and does not contribute to depreciation and financing costs. Breakeven is approx. USD 17,000 per day. During the second quarter, the freight rate was only approx. USD 4,000 (33,500) per day. On 29 May, Concordia signed an agreement to sell the Group's two ULCCs. This was announced in a press release issued on the same day. The Stena King was delivered to her new owner on 24 June and the Stena Queen is expected to be delivered at the beginning of September. The freight rate for these two vessels during the 6-month period was about USD 9,000 per day and includes insurance indemnity for loss of revenue (so-called loss of hire insurance) as a result of the Stena King's collision at the end of March. Management and operation During the period, the fleet continued to be operated with a focus on safety and quality and the cost of ongoing ship operation remained at a low level. EQUITY Equity per share after full conversion is SEK 26.66 (32.29). The SEK/USD exchange rate on 30-06-2002 was 9.16 (10.84). LIQUIDITY AND FINANCING The Group's disposable liquid funds, including unutilised credit facilities, amounted to SEK 189.4 (254.8) million on 30-06-2002 while the corresponding figure on 31-12-20001 was SEK 381.4 (724.5) million. The Group's existing fleet is financed via a credit facility of originally USD 165 million raised during the spring of 1999. This credit facility is amortised on an ongoing basis and amounted to USD 112 (148) million at the end of the period. The corresponding amount on 31-12-2001 was USD 137 million. The Parent Company's disposable liquid funds amounted to SEK 12.7 (8.9) million, while the corresponding figure on 31-12-2001 was SEK 7.0 (10.9) million. Convertible debenture loan The loan, which had run since April, 1995, and carried 7% interest, fell due on 30 April, 2002. Only SEK 1.9 million remained of the original loan amount of SEK 275.4 million. A total of SEK 273.5 million has thus been added to the company in the form of equity since 1995 as a result of conversion. INVESTMENTS No investments were made during the period. RELATED COMPANY TRANSACTIONS AND CHARTER COOPERATION WITH STENA BULK The joint charter business between Concordia and Stena Bulk consists of a multi-year freight contract, which is roughly equivalent to the employment of one VLCC. During the period, the freight contract generated a surplus of SEK 5.1 million for Concordia. Concordia's four VLCCs and Stena's VLCC Stena Conductor were operated in a pool where the profit was divided equally per vessel until the middle of May, when the Stena Conductor was withdrawn from the pool following her sale. Cooperation with other departments at Stena, such as Marketing, Technology, Finance, Bunker and Insurance, remains unchanged. Concordia's wholly-owned subsidiary Universe Tankships provides ship management for one of Stena's large tankers. Stena's subsidiary Northern Marine Management was responsible for the management of the Stena King and Stena Queen until they were sold. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/15/20020815BIT01230/wkr0001.doc The Full Report http://www.waymaker.net/bitonline/2002/08/15/20020815BIT01230/wkr0002.pdf The Full Report

About Us

Concordia Maritime is an international shipping company. Our focus is on the cost-efficient and safe transportation of refined petroleum products and edible oils. The series B-share has been listed on Nasdaq Stockholm since 1984. www.concordiamaritime.com

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