CONCORDIA MARITIME - ANNUAL GENERAL MEETING 2020
STRONG FINISH IN 2019, STRONG FIRST QUARTER 2020, GOOD START TO Q2 BUT DIFFICULT TO ESTIMATE REMAINDER OF 2020
The Coronavirus had already put its mark on Concordia Maritime's annual general meeting when shareholders were asked a few weeks in advance to consider voting via proxy and early voting. Food and drink were not served, only a few people attended instead of the usual around 100 people, and speeches from both the CEO and the CFO were published on the website instead of being given at the meeting. CEO Kim Ullman noted that 2019 ended with well-functioning operations in a strong market – a market that in the first months of 2020, with the pandemic and falling oil prices, completely changed character.
The meeting resolved, in accordance with the nomination committee’s proposal, to re-elect all six ordinary board members, to appoint Carl-Johan Hagman as chairman of the board and that no dividends would be paid for the 2019 financial year.
In his speech, CEO Kim Ullman described the market for the first three quarters of 2019 as weak, while the last quarter was marked by a sharp rise. With a smoothly functioning organisation, good cost control and participation in Stena’s well-managed ship pools, senior management felt relatively satisfied despite a challenging year for the tanker market.
CEO Kim Ullman's (left) and CFO Ola Helgesson's (right)
CFO Ola Helgesson also described 2019 as a tough year with a strong close. Concordia’s share rose by about 20% during the year, from SEK 12.20 SEK 14.60. Ola Helgesson also presented the company’s work with sustainability. When it comes to environmental responsibility, Concordia Maritime is prioritising reduction of bunker consumption. In 2019, it was reduced by 0.23 tonnes per day at sea for vessels, which entails that CO2 emissions decreased by 2,000 tonnes.
Kim Ullman concluded by describing the very special beginning of 2020 with Covid-19 and falling oil prices, and how this has, and will, affect the market. Kim Ullman believes that a strong Q1 will be followed by a relatively strong Q2. Overproduction of oil and low prices have led to a major need for storage of oil – both on land and on tankers. The low net growth of tankers is likely to continue. Q3 is predicted to be weaker, with possible recovery in Q4. But all forecasts are characterised by considerable uncertainty.
