Concordia Maritime

Concordia Maritime is an international tanker shipping company. We focus on safe, sustainable and reliable transportation of refined oil products, chemicals and vegetable oils. The Company's B shares were first listed on Nasdaq Stockholm in 1984. Concordia Maritime's fleet consists of ten P-MAX product tankers, two newly built IMOIIMAX chemical and product tankers, and one suezmax tanker. Concordia Maritime's operations are conducted in close cooperation with several of the companies in the Stena Sphere. The partnerships give access to world-leading expertise in all areas of shipping – from shipbuilding and manning to technical operation, chartering and commercial operation. Organisationally, Concordia Maritime consists of a shore-based organisation and a seagoing organisation. The shore-based organisation consisted of a total of 6 persons in 2017. The seagoing organisation is considerably larger. The number of temporary seagoing employees at the end of Q2 2017 was 468. Concordia Maritime's overall goal is to ensure a level of profitability that generates a good return for shareholders and allows continuous investment in existing and new tonnage. Operations are conducted with the utmost care for people and the environment. Tanker shipping is both volatile and cyclical in nature. In order to bridge periods of weak markets, there are rigorous requirements for financial sustainability and a business model that can be adapted in response to a specific market situation. Trade in vessels, both purchases and sales, is a key element of every shipping company's operations. The right timing of purchases and sales of vessels is crucial to long-term financial growth. For Concordia Maritime, this means that the fleet size may vary over time. For this reason, annual growth in the fleet is not an overall objective in itself. However, the aim is for operations to generate a return over time that enables a fleet growth of 10 percent over a business cycle. Our vision: To always be the preferred carrier and business partner within tanker transportation. Our business concept: To create value for customers and shareholders by providing safe, sustainable and reliable tanker transportation based on innovation and performance. To make timely investments in vessels and gain financially from fluctuations in their values. Daily ship operation Income from daily operation is mainly derived from compensation for contracting either through the spot market or time charters. Freight rate levels for spot charters are completely variable and based on supply and demand at any given time. With time charters, on the other hand, income consists of a pre-agreed time charter rate that applies throughout the negotiated charter period. The rate is determined by the market situation at the contract's inception and the contract length. The principal costs for a shipping company are voyage costs (mainly fuel and port dues), daily costs (mainly crew, insurance and maintenance) and capital costs. Purchases and sales of vessels Tanker shipping is capital intensive in nature, with high values attached to the vessels themselves. The prices of both new and second-hand tonnage vary according to the market and the ship's condition. The ability to optimise the timing of purchases and sales is therefore critical to the overall profitability of the business.