Focus on sustainability and innovation in
a challenging year
With a fleet of 80 owned, managed and controlled tankers in global traffic, Stena Bulk is one of the world’s leading tanker operators. The business idea is to offer secure, innovative and cost-effective marine transportation of crude oil, refined oil products, chemicals and LNG (Liquefied Natural Gas). The strategy is to adopt a holistic perspective, from development and construction to technical operation, with the crewing and chartering of first-class tankers and LNG vessels.
Summary of 2021
In a year characterised by the transformation in the energy sector, Stena Bulk focused on development within sustainability and the technology of the future. Among other things, the company plays a driving role in the development of methanol-powered tankers.
A changing energy industry
Stena Bulk is strongly affected by the fundamental changes taking place in the energy industry. Large parts of the year were characterised by the lowest demand for oil ever experienced by the industry since the 1970s, combined with a surplus of tonnage. The phasing-out of older tonnage as expected by the market did not take place, while new tankers were launched in the market. This also affected Stena Bulk, which reported a loss for the year.
“We hope and trust that we’ve weathered the worst of the storm and that 2022 will be a better year for the industry and for ourselves,” comments Erik Hånell, MD of Stena Bulk.
“The most positive thing during the year was that we made several advances in the transition to the sustainable technology of the future. We’re convinced that investment in the development of energy-efficient propulsion of the vessels, and to explore new low-carbon fuels is the right commercial decision to future-proof our fleet,” says Erik Hånell.
The transformation of the energy industry presents not only challenges, but also new opportunities. Stena Bulk works actively with business development to meet demand and provide the world with the energy and liquid raw materials of the future. This work is taking place against the backdrop of a changing market, where the company sees collaboration and partnership with major customers as a key to success. In 2021, Stena Bulk saw a strongly expanding market and increased demand for natural gas.
“As with all major changes, the change the energy industry is facing will present major opportunities. But we don’t know exactly what these opportunities will look like, so it’s important for us to have the right organisation, the right mindset and the right partners to be prepared to act and invest when the time is right,” says Peter Björkborg, Sustainability and Transformation Manager at Stena Bulk.
AN AMBITIOUS SUSTAINABILITY STRATEGY
During the year, Stena Bulk drew up an ambitious roadmap to address the major sustainability challenges and to transform them into new opportunities. Stena Bulk’s goals are:
- All newbuildings must be climate neutral by 2030
- To have carbon-neutral operations by 2040
- To be a “net-zero business” by 2050, whereby everything the company transports must be climate neutral.
The roadmap also includes three focus areas that are integrated into both the company’s strategic direction and day-to-day operations, and that are drawn up in line with the UN Sustainable Development Goals. These are:
- A safe and attractive workplace
- Energy and raw materials for a growing world
- A minimised ecological footprint
Sustainability focus during the year
In 2021, Stena Bulk focused on the environmental area, with a number of investments within technology development, development of propulsion with methanol, carbon storage on board vessels, and the implementation of biofuels in day-to-day operations.
Prior to COP26, Stena Bulk also joined forces with other industry leaders within the framework of the Global Maritime Forum’s Call to Action for Shipping Decarbonisation.
Safety is a constant focus within the company. Ongoing safety activities are conducted together with Northern Marine Group, which is responsible for crews and operations on board. During the year, Stena Bulk also signed the Neptune Declaration, which aims to safeguard the welfare of crews on board.
In the environmental area, Stena Bulk focuses on energy and fuel efficiency in day-to-day operations. As of 2020, Stena Bulk reports EEOI (Energy Efficiency Operational Indicator) for its vessels. This is a good measure of the vessels’ energy efficiency, as it ensures comparability between years, even if the size of the business changes. EEOI for the MR segment, which concerns smaller vessels, the result for the year improved and Stena Bulk achieved its targets. For the Suezmax segment, the larger vessels, EEOI is at a similar level as last year.
In 2021, Stena Bulk also reduced its fuel consumption and exceeded its target of reducing its consumption by 0.3 tonnes/day/vessel.
Share of Total income
Capital employed, MSEK