Termination of equity hedge
Today, Concordia Maritime has terminated the equity hedge that has been in place since 2005 and which currently amounts to USD 135 million, equivalent to approx. 50% of equity.
The decision will not have any impact on the income statement.
Concordia Maritime’s functional currency is USD, i.e. the major part of its revenues, costs and the balance sheet are denominated in USD. This means that changes in the SEK/USD exchange rate affect both the result and equity. A stronger USD increases equity while a weaker USD reduces equity. An equity hedge reduces the effect of this type of change in exchange rates. There will now be no hedge against exchange rate fluctuations.
Concordia Maritime AB (publ)
For more information, please contact:
Hans Norén
President
Phone: +46 31 855101
Mobile: +46 704 855101