Profitability highest when Stena Bulk is hottest in the frozen Baltic
With the record cold December winter taking an early stranglehold on the Baltic Sea, Stena Bulk’s profile as the market’s safest and most reliable tanker shipping company has become even more distinct and profitable.
“Right now we are the largest independent ship owner with ice-strengthened tonnage. Eight of the 12 largest tankers we have in service have the highest ice class, IA. Our customers know that we know more about shipping in icy waters than anybody else”, says Ulf G. Ryder, Stena Bulk’s CEO and President.
The record cold December weather put additional pressure on oil transportation in the Baltic:
• The demand for oil is increasing. In the OECD countries, an extra million barrels of oil per day are consumed during a cold winter.
• The weather and the ice situation are causing disruptions and delays in tanker traffic. For example, ice coverage in the Baltic at the beginning of January 2011 is already more extensive than it was in February 2010.
In this situation, Stena Bulk’s combination of outstanding expertise and first class tonnage is literally worth its weight in black gold to the oil companies and the charterers.
With experts in shipping in icy waters in both Gothenburg and the strategically located office in Helsinki, Stena Bulk is in a perfect position. Additionally, the company’s ice-classed fleet is both young and modern.
Exceptional earnings capacity
When ordering all the new tankers, the focus has been on safety and reliability. Today, Stena Bulk has a total of 12 tankers in the Baltic. Nine of them are classed for shipping in icy waters and eight have the highest ice class, 1A. This means that they are approved for difficult conditions with more than 50 centimetre thick ice.
“Most of the vessels in the fleet are owned by us. On the vessels we charter, we have extra personnel on the bridge with special competence in shipping in icy waters”, says Ulf G. Ryder.
The port of Primorsk is the hub of Russian oil exports in the region. Today, Stena Bulk has a 20 per cent market share of the 100 million tons of oil transported every year across the Baltic.
“We are now seeing the result of our persistent strategy of investing in shipping in icy waters and in the Baltic. Our contract portfolio is well filled and the earnings capacity of our tankers is exceptionally high. At present a 100,000 ton Aframax earns between 70,000 and 100,000 US dollars per day. Compare this with USD 20,000 per day in warm waters and it is crystal clear where the big profits are to be found right now”, says Ulf G. Ryder.
Ulf G. Ryder, CEO and President
Stena Bulk AB
Phone: +46 31 855001
Mobile: +46 704 855001
With offices in eight countries, Stena Bulk is a leading international tanker owner. The company has a controlled fleet of about 80 tankers. Stena Bulk is part of the Stena Sphere with more than 20 000 employees and a turnover of 6.5 billion USD. www.stenabulk.com
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