Record profit after delivery of new and rebuilt vessels
Stena RoRo builds and charters out RoRo and RoPax vessels, and is an important link in society’s infrastructure chain by enabling efficient and sustainable freight transport. RoRo vessels carry wheeled cargo, primarily lorries, creating bridges at sea all over the world. On the RoPax vessels, load capacity is combined with all of the facilities offered by modern vessels to their passengers. Currently, around 10 vessels are chartered out to operators around the world; both to Stena Line and to external parties. Stena RoRo specialises in using technical expertise and innovation in the design and production of new vessels, as well as in the conversion of existing vessels, in order to deliver customized solutions to its customers under the “Stenability Strategy”.
Summary of 2022
With delivery of new E-Flexer vessels and sale of a rebuilt vessel, Stena RoRo recorded a record-high result for 2022 – both when it refers to the number of transactions and results.
THE FUTURE LIES IN E-FLEXERS
During the year, Stena RoRo delivered two E-Flexer ferries to Stena Line – Stena Estelle and Stena Ebba – so far the largest vessels of this type ever designed and built. A further vessel, Santoña, was delivered to the French shipping company Brittany Ferries. The E-Flexer vessels set a completely new sustainability standard in the RoPax segment. They improve cost and energy efficiency, and the engines can also be powered by different types of fuel, such as biogas, ammonia and methanol. Some of the vessels also have large battery packs installed, which enable them to operate on batteries or fuel cells inside and outside of port. Stena RoRo currently has 12 confirmed orders for E-Flexer vessels, which are being built at the CMI Jinling Shipyard in Weihai, China. Nine vessels have been delivered so far, of which three were delivered in 2022.
“There’s a great deal of interest in this type of vessel, as they can be adapted for different types of fuel. Their extensive capacity also reduces the total emissions per unit transported. My assessment is that interest will increase further in line with the new EU regulations for carbon emissions for vessels and that the future lies in E-Flexers, which are designed to meet the environmental requirements within the EU by 2050,” comments Per Westling, MD, Stena RoRo.
“Investments in these vessels are extensive at over SEK 1 billion per ferry. But this is now paying off, as deliveries are starting to be ready and they go directly into service, which results in a substantial cash flow for us. We’re also in dialogue with both Stena Line and a number of other shipping companies concerning orders for new E-Flexers, which we hope we’ll be able to land in the course of the coming year,” he continues.
STRONG CONVERSION SKILLS
According to Per Westling, Stena RoRo has developed into a major company with stable cash flows and relatively low risk, which gives the company greater opportunities and clout for the second part of the business concept, which is to buy vessels when prices fall, and then upgrade them and sell them again when prices rally. Such a deal was successful during the year when the RoPax vessel Connemara, which was purchased in 2007, was sold to a New Zealand ferry company.
“We can benefit from our strong expertise in the conversion field,” says Per Westling.
Another prestigious assignment for Stena RoRo in 2022 was to provide expertise for the procurement of new vessels for the US fleet, MARAD (United States Maritime Administration). The assignment took place in collaboration with the American Crowley Maritime Corporation shipping company, which was responsible for the execution of the transaction.
OPENING OF GLOBAL MERCY IN SENEGAL
On behalf of the Mercy Ships charity, Stena RoRo has been responsible for the design and construction of Global Mercy, the world’s largest civilian hospital vessel. The vessel was inaugurated in July 2022 with ceremonies in Dakar, Senegal. At the same time, the crew was already up and running with the vessel’s first intervention to strengthen African healthcare. Building the vessel had been in progress since 2013 and involved several European, US and Asian subcontractors. Stena RoRo has had its own international team on site at the yard in China to monitor the construction process.
SUSTAINABILITY REQUIREMENTS FOR THE SHIPYARDS
Stena RoRo has a clear process in place to ensure that the shipyards meet Stena RoRo’s sustainability requirements. Stena RoRo operates in accordance with Stena’s Code of Conduct and Stena’s Group-wide policies, and Stena RoRo also holds ISO certfication.
Stena RoRo sets requirements and evaluates new partners in a number of areas, and this always takes place before a new yard is engaged. Sustainability aspects are an integral aspect of Stena RoRo’s selection process.
Throughout the newbuilding project, Stena RoRo has a project team in place at the shipyard with instructions to evaluate and follow up on issues such as safety, the working environment and human rights. Stena RoRo’s project team continuously follows up and reports on any deviations at the shipyard.
Share of Total income
Capital employed, MSEK