FINANCING OF NINE VESSELS BEING BUILT IN CHINA
The financing of the nine new vessels currently being built in China, ordered by various Stena business units, was one of the tasks on which Stena Finance’s efforts were focused in 2019. Peter Claesson, Managing Director of Stena Finance, describes 2019 as a good year in terms of returns.
Stena Finance’s main task is to manage the Stena AB Group’s financing and liquidity planning in both the short and long term. Stena Finance manages the operational business units’ financial risks in the interest rate, currency and oil markets, and also manages the Group’s financial investments. Another important role is to serve as a resource for the operational units on the identification, analysis and achievement of new business deals.
Stena is a capital-intensive company with several business units that operate in markets subject to a risk of sudden volatility. ”To counter these cyclical fluctuations, Stena requires strong liquidity. Our policy is to be able to handle cyclical financial strains for at least a three-year period,” says Peter Claesson.
The past year was characterised by a strong upturn on global stock markets, despite political unrest and a trade war. For Stena Finance, this entailed an increase of no less than 15 per cent in the return on invested capital. ”We live in a troubled world with a tense situation with regards to the Covid-19 outbreak. Our strategy is to spread risk by balancing equities holdings in relation to holdings of bonds and interest-bearing securities, in order to safeguard capital and high liquidity,” comments Peter Claesson.
FINANCING OF NEW VESSELS
The focus during the year included financing the newbuilding programme for nine vessels, ordered from a Chinese yard by various Stena business units. ”The financing of four of these was already in place, but there were five still to be financed, and we devoted a lot a of work to this during the year. Investment in each and every one of these vessels is an extensive investment. ”Now that this is in place, we’re looking ahead and during the next year we will work on the refinancing of a number of vessels. 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.