The result after tax for the period January–September, 2015 amounted to SEK124.5 mill. EBITDA for the period was SEK289.7 mill, corresponding to $34.4 mill.
The strong tanker market continued into the early part of the third quarter, but fell back slightly in August and September. After several strong quarters, we are now seeing a certain seasonal slowdown, just as previously predicted, the company said.
However, the decline comes from high levels and we do not believe that it will be as deep or prolonged as in recent years. The market in the crude oil segment has already recovered and we expect a similar trend for the product tanker segment during the current quarter. Such a strong market during the third quarter is uncharacteristic and must be seen as a sign of a good balance between supply and demand, Concordia said.
A contract with one of the world’s largest oil and gas companies was renewed during 3Q15. This contract was extended by 12 months for two vessels and now also includes an additional vessel for six months.
This client had a specific transport need for which the large load capacity of the P-MAX tankers was well suited.
Immediately after the end of 3Q15, in early October, Concordia took delivery of ‘Stena Important’, the second of two IMOIIMAX tankers.
The IMOIIMAX vessels represent the next step in the evolution of the fleet. Concordia’s long-term aim is to continue to progressively expand the fleet. One of the targets is for the company’s operations to generate a return over time that allows annual fleet growth of at least 10% over a business cycle.
“Our basic view of the market is unchanged. This means that we expect a strong conclusion to 2015 and a strong start to 2016. Based on a well functioning operation and a balanced contract portfolio, we consider ourselves well positioned to take advantage of the market situation,” the company said in its 3Q15 results presentation.