Stena Finance

Financial stability after intensive work

Stena Finance’s main task is to manage the Stena Group’s financing and liquidity planning in both the short and long term. Stena Finance manages the operational business units’ financial risks in the fixed-income, currency and oil markets, and also manages the Group’s financial investments. Another important role is to serve as a resource in the identification, analysis and development of new business. Stena is a capital-intensive company with several business areas that operate in markets subject to the risk of sudden fluctuations, which was highlighted in conjunction with the outbreak of the pandemic in early 2020, and the extensive effects on both ferry traffic and oil operations.

Summary of 2021

The measures taken by Stena Finance in 2020 to ensure financial stability when the pandemic severely affected several of Stena’s activities paid off during the past year. “We had a rather stable year as the balance sheet could be strengthened by such measures as divestment of the foreign property portfolio,” comments Peter Claesson, Director of Finance.

Strengthened finances in 2021

Peter Claesson describes 2021 as a year of strengthening the balance sheet.

“The measures we took in 2020 to achieve financial stability in connection with the challenges faced by the Group have yielded results. At the same time, 2021 saw better results for the business units that did not do so well in the previous year, i.e. Stena Line and Stena Drilling. On the other hand, the tanker market performed weakly.”

“Our financial strategy to focus on high liquidity has proved its worth,” he says.

The balance sheet was also strengthened by divestment of the foreign property portfolio and Stena’s victory in a long-standing dispute concerning the order of an oil drilling rig.

Increased focus on sustainability

According to Peter Claesson, Stena Finance is facing increasing interest from the financial market with qualified issues concerning the Group’s sustainability work and reporting in this area.

“We take these issues very seriously. Extensive efforts to contribute to sustainable development are underway in all business units, from trials with new fuels and electricity-based shipping operations to developing sustainable urban districts. In view of this increased interest, we will strengthen and develop our communication in this area,” he comments.

FINANCING OF NEWBUILDINGS

One of Stena Finance’s tasks is to manage the financing of the vessels ordered by different business units within Stena in recent years. Each of these requires a substantial investment. In 2022, Stena Finance will continue to work on financing the last three vessel orders, placed in 2021.

“As always, the focus is on high liquidity, positive cash flows and the ongoing work of achieving the best possible return on our financial assets,” says Peter Claesson.