Swedish shipowning group Stena AB has added SEK 10.7bn ($1.2bn) to its liquidity through a new bank loan as losses grow due to Covid-19.
The ferry, tanker, LNG carrier and drillship company said the new revolving credit facility was signed with a bank consortium, whose members it did not name.
Of the total, SEK 8bn is guaranteed by Swedish export credit agency EKN.
The liquidity position "remains strong", the group said, with SEK 20.9bn available.
As of 30 June, total cash and marketable securities including short-term investments, amounted to SEK 6.45bn, down from SEK 10.2bn at the end of 2019.
Stena AB has remaining capital expenditure commitment for newbuildings of SEK 4.8bn. Of this, SEK 1.1bn is due in 2020.
"Stena intends to finance the remainder of this unpaid balance, together with additional expenses and financing costs, with cash from operations, existing revolving credit facilities, new capital lease agreements, new bank loans and other financing arrangements," the company said.
Stena AB also said it believes that, based on current levels of operating performance and anticipated market conditions, it will have enough cash to repay debt instalments and to cover the capital expenses bill.
Loss mounts over first six months
The company's net loss in the second quarter was SEK 647m, against profit of SEK 283m a year ago
Revenue dropped to SEK 8.1bn from SEK 9.3bn, with ferry operations bringing in SEK 2.1bn versus SEK 3.6bn in 2019.
The six-month loss grew to SEK 2.6bn as a result.
Ropax unit Stena Line experienced a "significant drop in [the] number of passengers [and] cars, and decreasing freight volumes as a consequence of the outbreak of Covid-19," the parent company said.
However, Stena AB added: "Freight volumes have improved significantly during the second quarter compared to the first quarter."
Drilling operations suffered from lower earnings due to fewer operating days, but "several new drilling contracts have been signed during the second and third quarter 2020".
During August, the company said it had signed new charters for its drillships Stena Forth (95,000 dwt, built 2009) and the 54,000-dwt Stena IceMAX (built 2012), starting in 2021.
These last between 40 and 180 days. Rates were not disclosed.
The tanker fleet enjoyed stronger rates to "significantly increase" Ebitda, and the LNG carriers also saw rates rise, Stena AB said.
"The consequences of the outbreak of Covid-19 on the Stena AB Group is at this stage still evolving," the group said.
"There has been a negative financial impact on the Stena AB Group as from mid-March. Given the uncertain situation, it is not currently possible to predict the full potential impact on the Stena AB Group."
