Stena Line Ab News

Rolls-Royce said it has signed a deal with Swedish ferry company Stena Line AB to collaborate in the development of its first intelligent awareness system. Intelligent awareness systems will make vessels safer, easier and more efficient to operate by providing crew with an enhanced understanding of their vessel’s surroundings, according to Rolls-Royce. This will be achieved by fusing data from a range of sensors with information from existing ship systems; such as Automatic Identification System (AIS) and radar. Data from other sources, including global databases, will also have a role.

GE Marine Engines has been supplying integrated propulsion systems for a variety of commercial and military marine customers for more than 25 years. GE's complete line of aeroderivative gas turbines includes the LM500 (6,000 hp), LM1600 (20,000 hp), the LM2500 (33,600 hp), the LM2500+ (40,500 hp) and the LM6000 (57,330 hp). For instance, the first gas turbine-powered fast ferry in Greece entered service in the summer of 2001. This Corsaire 14000-class monohull is powered by two GE LM2500+ gas turbines in a combined diesel and gas turbine (CODAG) arrangement with two diesel engines. The ship was built for operator Maritime Company of Levos (NEL), Piraeus, Greece, by Alstom Leroux Naval Shipyard in France.

The chairman of Swedish international shipping operator Stena Line AB told press he can imagine selling the loss-making ferry group. However, said Dan Sten Olsson, "it has to be a serious buyer who is not just out to shop up the company." Stena Line - which also operates the English Channel with British shipping operator P&O under the P&O Stena Line company - posted a loss after financial items of $57.15 million for 1999. The group has cut costs to meet changes following the end of tax-free shopping in Europe. Olsson said he expected the loss-making group to break even in 2001. He said there were several buyers who may be interested in the Swedish group, one of the world's largest shipping operators.

Standard & Poor's lowered its long-term corporate credit rating on Sweden-based Stena AB to double-'B' from double-'B'-plus. The senior unsecured rating on Stena was also lowered, to double-'B'-minus from double-'B'. At the same time, the ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 31, 2000. The outlook is negative. The downgrade reflects Stena's increased exposure to the difficult Northern European ferry market and a weaker financial profile following completion of the acquisition of Stena Line AB. Stena Line, which is wholly owned by Stena, is one of the world's largest ferry companies, with routes in Northern and Western Europe.

GE Marine Engines announced that 36 GE LM aeroderivative gas turbines have accumulated more than 600,000 hours operating aboard 16 fast ferries. Fast ferry operators have selected our gas turbines for a variety of propulsion system configurations. This milestone further demonstrates the outstanding reliability and availability of the LM gas turbines for fast ferry applications,” said Karl Matson, general manager of GE Marine Engines. The Stena Explorer, a Highspeed Sea Service (HSS) catamaran, is the fast ferry that has operated the longest using GE gas turbines. The ship, which began operation in June 1996, is still in service today.

GE Marine Engines announced that 36 GE LM aeroderivative gas turbines have accumulated more than 600,000 hours operating aboard 16 fast ferries. "Fast ferry operators have selected our gas turbines for a variety of propulsion system configurations. This milestone further demonstrates the outstanding reliability and availability of the LM gas turbines for fast ferry applications," said Karl Matson, general manager of GE Marine Engines. The Stena Explorer, a Highspeed Sea Service (HSS) catamaran, is the fast ferry that has operated the longest using GE gas turbines. The ship, which began operation in June 1996, is still in service today.

Moody's Investors Service today confirmed the Ba3 rating for senior notes of Stena AB ("Stena") and changed the outlook for its ratings to negative from stable. The Ba3 rating reflects the company's increased exposure to the European ferry industry and higher financial risk as a result of the acquisition of a 100 percent ownership in Stena Line AB. At the same time, Moody's confirmed Stena's Ba2 senior implied rating, and also Stena International BV's senior secured bank loan rating of Ba1. The negative outlook for the ratings reflects Moody's concerns that Stena may not be able to substantially improve the performance of its ferry operations near term. With that, Moody's concludes the review of Stena's ratings for possible downgrade it initiated on November 1, 2000.

The European Commission granted P&O and Stena Line a six-year exemption from competition rules to operate a cross-Channel ferry service for passengers and freight. "The Commission's recent investigation has not revealed any valid market changes which could justify forcing P&0 of Britain and Stena Line, a subsidiary of Sweden's Stena Line AB, to undo their alliance," it said. The new exemption period, which expires on March 7, 2007, will permit P&0 Stena Line to continue competing with Eurotunnel, Sea France, Hoverspeed and NorfolkLine, the Commission said. The new exemption replaces a three-year exemption that expired March 10. The old exemption, while granted in 1999, had been retroactive to 1998. - (Reuters)

With the loss of duty-free sales in Europe from July 1, Swedish ferry operator Stena Line AB has already seen a drop in on-board retailing and slashed 660 jobs. On Thursday, Stena Line posted a pre-tax loss of $27.9 million for the first six months of 1999 versus a loss of $63.5 million in the 1998 period.

The chief executive of Swedish ferry operator Stena Line AB shrugged off fears of losing sea travelers as fares rise and more bridges and tunnels are built, saying that he was still optimistic about the future. With the loss of duty-free sales in Europe since July 1, Stena has already seen a drop in on-board retailing and slashed 660 jobs. To add to its woes, a bridge connecting Sweden and Denmark is being built, reducing a potential market for Stena. "We've taken a lot of the pain already to adjust to the abolition of duty-free," said Stena CEO Bo Severed. "I'm not satisfied with the results level, and we need to improve on that. ... Stena Line posted a pre-tax loss of $27.9 million for the first six months of 1999 versus a loss of $63.5 million in the 1998 period.

Standard & Poor's placed its single-'B'-plus long-term corporate credit ratings, and its single-'B' senior unsecured debt ratings on Stena Line AB on CreditWatch with negative implications. The CreditWatch placement follows the company's announcement of weaker-than-expected earnings for the first nine months of the year, and the announcement that Stena Line has acquired Scandlines AB (a ferry company operating five routes linking Sweden, Denmark, and Germany) for $67 million in cash. Stena Line, one of the world's largest ferry companies, operates 25 vessels on 12 routes in Northern and Western Europe. It also owns a 40 percent interest in P&O Stena Line.