Sweden’s Stena AB expects to post better annual earnings for 2023 as liquidity continues to swell.
In a trading update, the Olsson family-controlled tanker, LNG carrier and ro-ro group said preliminary data suggests operational Ebitda will be between SEK 13.9bn and SEK 14.5bn ($1.4bn), compared to SEK 12.6bn for 2022.
This “reflects the continued strong performance of the business in line with last reported results for the nine months ended 30 September,” the owner said.
“The company has a strong liquidity position,” it added.
At year-end, it could draw on reserves of SEK 21.9bn if needed.
This comprises cash on the balance sheet, existing undrawn credit facilities and investments and marketable securities.
Stena is one of the country’s largest privately owned companies of any type.
In December, the owner received a big vote of confidence from Clarksons Securities despite lower third-quarter earnings.
The investment bank believes the group remains “a great credit story”.
Only one loss in 80 years
Stena posted net profit of SEK 984m for the period, down from SEK 1.5bn in 2022.
Revenue dipped to SEK 14.4bn, against SEK 14.8bn the year before.
Clarksons Securities managing director Jonas Bito Shum said: “For several years, I have held a positive view of Stena’s creditworthiness due to what I perceive as a solid credit story.
“Throughout its more than 80-year existence, the company has incurred losses only once, and that was during the unprecedented 100-year pandemic.”
The Olsson family has consistently reinvested more than 90% of the company’s earnings in the business over the past 23 years, the analyst pointed out.
As the company looks ahead and expands its operations, Clarksons Securities is factoring in investments totalling SEK 21bn through 2026, with SEK 7.3bn allocated to newbuildings.
These include ropaxes and a drill ship that will bolster earnings stability and capacity, the investment bank said.
The group has 38 ferries servicing 17 northern European routes, plus three LNG carriers, 11 ro-ros and 65 tankers.
