Swedish tanker and ferry giant Stena AB has more than $2bn for potential acquisitions as it faces up to a tough 2017.

CEO Dan Sten Olsson said in the company's annual report that the SEK 19.1bn ($2.16bn) of available cash, unused credit facilities and financial assets provides a "good cushion" in difficult times.

And he added: "It might also be used for strategic acquisitions would the opportunity arise."

"Our strategic position is at present strong enough though to enable us to keep on operating the activities we have, without any other acquisitions than modernising our fleet of ferries."

The group posted a pre-tax profit of SEK 2.26bn for 2016, down from SEK 4.5bn the year before.

Revenue was weaker at SEK 34.8bn from SEK 36.41bn in 2015.

Stena AB controls 168 ships and has total assets of SEK 123.7bn, up from SEK 119.3bn in 2015.

The ferries of Stena Line produced profit of SEK 730m, but Stena Drilling, which includes six shuttle tankers, three rigs and four drillships, logged a loss of SEK 937m.

Shipping operations, which comprise tanker arm Stena Bulk and freight ferry operation Stena RoRo, recorded a loss of SEK 379m.

Stena AB made total investments of SEK 7bn in 2016, mainly newbuildings for Stena Bulk and Stena Line.

Economy on the up?

Surveying global conditions, Olsson said: "The world economy is doing ok and Europe has started to grow again.

"This has positively affected the volumes of passengers and freight for our ferry business, Stena Line."

He added: "Our tanker business is doing OK, but future deliveries of tonnage will saturate the market for the next two years."

Last month, the group acquired the other half of Stena Weco from Weco Shipping, giving it sole control of 65 owned or chartered medium-sized product tankers.

Olsson said: "The acquisition makes us a true leader in this field."

Its suezmax operation in partnership with Sonangol will benefit from flexible chartering of tonnage, he added.

Stena AB also manages 45 LNG and LPG carriers.

Olsson said the LNG market went through its worst phase in 2016, but is now slowly recovering.

"Offshore drilling will be our biggest headache for years to come," he added.

"Nevertheless we have entered into three new contracts for our ultra deepwater drillships."

He pointed to the fact that it has 43% of assets in non-marine activities, meaning it can rely on other income in case of a drawn-out negative period for offshore drilling.

Looking ahead, Olsson said 2017 will be a "tough year from a profit point of view."

"To run a business, though, is to live with change. With our strong base we feel secure in looking forward to our future with good confidence and long term optimism," he added.