Interim report January 1 - June 30, 2000

Interim report January 1 - June 30, 2000 Stena Line is an international transport and travel service company and one of the world's largest ferry operators. The route network comprises, as of June 30, 12 strategically located routes in Scandinavia and around the UK. In addition the Company has interests in three ferry routes through its ownership in P&O Stena Line and its collaboration with another ferry operator. Highlights of the first six months, 2000 * Average ticket rates rose 25% in Scandinavia and 4% in the UK. Freight rates increased by 9% in Scandinavia and declined 4% in the UK. * Volumes rose 4% for freight and declined 3% and 15% for private cars and passengers respectively. * Average retail spending per passenger declined 43% in Scandinavia and 60% in the UK. * Revenue decreased by SEK 582 million to SEK 2 813 million from SEK 3 395 million. * EBITDA declined by SEK 231 million to SEK 33 million from SEK 264 million. * Income from operations declined to -SEK 324 million from SEK 26 million. Income from operations includes Stena Line´s share of P&O Stena Line´s income of -SEK 43 million. No dividends were received from P&O Stena Line. * The loss before income taxes was SEK 577 million compared to a loss of SEK 233 million in 1999. * The acquisition of Scandlines AB was completed on July 1, 2000. Results, April-June 2000 (Comparisons are with the same period in 1999, unless otherwise indicated) Revenue Revenue declined by SEK 423 million or 20%, to SEK 1,671 million compared to SEK 2,094 million for the same period in 1999. The decrease was mainly due to a reduction in onboard sales and lower passenger volumes, particularly in Scandinavia, as a result of the abolition of tax and duty free retail sales and the operational changes. Exchange rate fluctuations had a negative impact of SEK 27 million. Revenue in Scandinavia declined by SEK 237 million to SEK 764 million compared to SEK 1,001 million for the same period in 1999. Revenue in the UK decreased by SEK 186 million to SEK 907 million compared to SEK 1,093 million in 1999. Freight/Port revenue increased by SEK 5 million to SEK 516 million from SEK 511 million in 1999. Average freight rates rose 8% in Scandinavia and declined 6% in the UK. Freight volumes remained unchanged in Scandinavia and increased by 8% in the UK. Total onboard revenue declined by SEK 368 million to SEK 409 million from SEK 777 million in 1999. Average retail spending per passenger fell to SEK 160 from SEK 279 in Scandinavia and to SEK 55 from SEK 147 in the UK. Travel revenue (mainly passenger and private car tickets) declined by SEK 58 million to SEK 747 million from SEK 805 million in 1999. Average passenger ticket rates increased by 24% in Scandinavia, due to a combination of increased prices and a change in passenger mix. Average ticket rates in the UK increased by 5%. Private car volumes declined 9% in Scandinavia and 2% in the UK. Passenger volumes declined by 27% in Scandinavia and 9% in the UK. The reduction in passenger volumes in Scandinavia was a result of the abolition of tax and duty free retail sales and the operational changes. Operating expenses Operating expenses declined by SEK 225 million to SEK 1,547 million from SEK 1,772 million. This was primarily a result of the reduction in retail goods sold following the abolition of tax and duty free retail sales within the EU and the operational changes in Scandinavia. The cost savings were partly offset by higher oil costs of SEK 21 million due to increased oil prices. Exchange rate fluctuations had a positive impact of SEK 27 million. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/24/20000824BIT01060/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/24/20000824BIT01060/bit0002.pdf The full report