Annual Report 2018 1865 – 2018 HSC Gotlandia II HSC Gotlandia M/S Gotland M/S Visby M/S Visborg M/S Gute M/T Gotland Marieann M/T Gotland Carolina M/T Alice M/T Gotland Sofia M/S Thjelvar M/T Wisby Atlantic M/T Ami M/S Cielo di Tocopilla M/T Wisby Pacific M/T Gotland Aliya M/S Cielo di Jari Vessel positions 28 March 2019 (also page 43) Annual Report 2018 www.gotlandsbolaget.se/en – www.gotlandtankers.se/en Contents Letter to Shareholders .........................................4 The financial year in brief .....................................5 Business concept and vision ............................6–7 Environment ....................................................8–9 Staff and employees .................................... 10–11 www.destinationgotland.se/en The Gotland service ..................................... 12–13 Companies and businesses ......................... 14–15 The share and development ......................... 16–17 Board of Directors’ report ............................. 18–19 The business in brief – Group .............................20 Income statement 2018 .....................................21 Balance sheet as at 31 December 2018........ 22–23 www.gotlandsresor.se Statement of changes in equity .........................24 Cash flow statements ........................................25 Accounting and valuation policies................26–27 Notes to the consolidated and Parent Company financial statements .........28–35 Audit Report .................................................36–37 Vessel Gallery ..............................................38–41 www.srvab.com Board of Directors ..............................................42 The annual report is also available on our website: www.gotlandsbolaget.se The AGM is scheduled to be held in the Congress Hall at Wisby Strand on 4 June 2019 at 11am. Rederi AB Gotland, Visby. Design: Kusinerna Kommunikation. Cover photo: Karl Melander. Printed by: iVisby Tryckeri. Visby 2019. www.skgb.se REDERI AB GOTLAND » ANNUAL REPORT 2018 » 3 PHOTO KARL MELANDER Håkan Johansson, CEO (shareholding 100 shares) and Ann-Marie Åström, Chairman of the Board (shareholding see page 17). Letter to Shareholders Development of improved slightly. The four ice-classed Environmental impact in focus the Gotland service product tankers have been chartered Destination Gotland released its first During the year, we strengthened the out on time charter, instead of the previ- sustainability report in 2018, and our Gotland service by expanding the capac- ous deployment in the Hafnia MR pool, aim has become even clearer in terms ity offering, which also resulted in which provides more stable revenues of being able to operate climate-neu- higher volumes for passengers, passen- and the possibility of an increase provid- tral ferry services. A new vessel with ger cars and, in particular, freight. To ing the market improves. In addition to a new fuel provides lower emissions but achieve this, in addition to the regular weak market, the costs for operating the the continuous improvements that are ferries, M/S Gute was put into summer vessels have been higher than expected, always being implemented for our day to service in order to offer more space on and changes have been introduced to day services are equally important. the car decks and to facilitate the trans- bring down costs in the future. port of more passenger cars on the other Our most important asset ferries. As the new vessel M/S Visborg Our core business With the new ferries, the value of the was introduced into service in March is most important company's assets is rising substantially 2019, the capacity on the car decks grew As part of our initiative to strengthen and the balance sheet total is increas- for the days with highest demand by up our core business, we will be handing ing in a unique way being a shipping to 20 per cent, which our customers will over the assignment to operate the Wax- company of our size. The unique fac- appreciate when many people want to holm companies fleet for Stockholm tor is the initiative aimed at continuing travel. County Council in 2019 to the Blidösund to expand Gotland in a sustainable way company that won the tender which was without any adverse climate impact. In A weak market signed in 2018. After a turbulent start to this expansion, the value of our most In product tankers, the weak mar- our assignment for the archipelago ser- important asset, our employees who are ket from the previous year contin- vices, the past few years have worked constantly striving to improve our busi- ued in 2018. An oversupply of vessels out well. A crucial factor for the turn- ness, also rises. A big thank you for your has produced a lower degree of utilisa- around has been the employees in the efforts over the course of the year! tion than needed to improve earnings. Skärgårdsbolaget who provide reliability However, the beginning of 2019 looks and loyalty to our customers. Ann-Marie Åström, Chairman more encouraging and earnings have Håkan Johansson, CEO 4 « ANNUAL REPORT 2018 « REDERI AB GOTLAND The financial M/S Visborg year in brief Naming ceremony in Nansha (Guangzhou), China 8 December 2018. The picture shows shipowner Eric D. Nilsson with Mrs Marieann, godmother Siv Olofsson, Captain Mats Thor, Chairman of the Board Ann-Marie Åström, Vice Chairman Björn Nilsson, the shipyard management at GSI and ambassadors for both China and Sweden. The long-awaited LNG ferry, M/S Vis- at Hong Kong, Singapore, Durban in Rederi AB Gotland and Destination borg, was delivered during the financial South Africa and the Canary Islands, she Gotland AB. year. The vessel, which was built at the arrived in Sweden on 23 January 2019. Ahead of Visborg's première sail- GSI shipyard in China, was delivered to The first Swedish port to be entered, ing as part of the Gotland service, from the company in December 2018. Just a however, was not her home port, but the Visby to Nynäshamn on 28 March few days before the delivery, the ship was vessel first docked at Oresund Drydocks 2019, the vessel was showcased in Visby named on site in China by godmother in Landskrona to be fitted out for its start and Stockholm. Many people took the Siv Olofsson. Siv has been working in the Gotland service. On 14 March, opportunity to visit the vessel on both closely with the board and management Visborg arrived at her home port, Visby occasions; in Visby, around 7,000 visi- at Rederi AB Gotland over 40 years. and was welcomed by shipowner Eric D. tors turned up, while some 8,000 people The vessel then began its one month- Nilsson with Mrs Marieann and a large attended the viewing in Stockholm. long journey home from Guangzhou delegation consisting of the godmother on 18 December 2018, and after calling as well as staff and management from REDERI AB GOTLAND » ANNUAL REPORT 2018 » 5 Business concept and vision With development in the blood Rederi AB Gotland is a Gotlandic com- ral part of Gotland's society lies behind pany that has been operating since the relentless development of our life- 1865 and is designed to create the blood, the maritime transport system to opportunity for development on Got- and from the island, in order to operate land. The company was formed by a ferry services in the long term without group of people who, in a true Gotlan- causing environmentally harmful emis- dic spirit, took matters into their own sions.” hands by creating a dependable net- We are essentially here to serve Got- work of connections between the island land. For the people of Gotland, for the and the outside world. The same basic entrepreneurs and companies who concept endures today more than 150 want to establish themselves on Got- years later, and is incorporated into land and for everyone who wants to our business concept: “Being a natu- come here and discover everything the 6 « ANNUAL REPORT 2018 « REDERI AB GOTLAND PHOTO OLOF SEGERBERG OLOF PHOTO island has to offer. It is with great joy year in which we present our climate levels. The start of services for our new and pride that we can state that two- impact findings and outline our con- LNG vessel in the Gotland service sees a thirds of our Shareholders reside on tinuous improvement work that we are modern and improved workplace for our Gotland. The latest AGM attracted some carrying out in order for us to achieve staff, while the technology shift paves 1,000 Shareholders who came in person our ultimate goal of climate-neutral the way for a gradual replacement of to ensure that we look after their inter- maritime traffic. The report also fea- natural gas with renewable biogas as ests in the best possible way. tures a social dimension in which we fuel. It also gives us the capacity we Looking to the future, it is all about address staff issues, the working envi- need to continue to complete the mis- us in general and for society as a whole ronment, gender equality and safety sion that has been handed down within to combine growth with responsibility and describe all the measures we take Rederi AB Gotland since its inception: when it comes to social and ecological to improve in these areas as well. to continue developing Gotland. sustainability. Consequently, we pre- Our investment in new ferry tonnage pare a special sustainability report each represents a major step forward on all REDERI AB GOTLAND » ANNUAL REPORT 2018 » 7 Environment On the way to climate- neutral services on the Baltic Sea As a Gotlandic company, it is a matter a minor portion of the energy require- LNG ferry. When we wash the car decks, of course for us to protect the Baltic Sea ment right from the start, and can then any harmful substances from vehicles and the unique nature we have on our be gradually expanded. are also taken care of and recycled. island. Combined with an awareness of But new, exciting technology is just On board the vessels we serve locally the climate challenges we are facing at a one of several ways of addressing the produced food that comes from the global level, this encourages us to focus sustainability challenge.