Annual report 2006

Profit after financial items for the financial year from 1 May to 31 December 2006 was SEK 271 million, compared with SEK 269 million the previous year. Given that the accounting period covers just eight months and that this figure includes the reversal of a SEK 108 million provision in respect of the dispute with the National Public Transport Agency, this pro- fit is considered satisfactory. One important reason for this profit was a very good market for product tankers during the period.

The company has expanded its product tanker newbuilding programme in China to include a fourth vessel. The company’s partner A/S Dampskibsselskabet TORM has also ordered six vessels of the same type, known as the Gotland class, and other parties have ordered a further two vessels of this type.

The number of passengers on the Gotland service increased by 0.9 per cent last year, which means that they have now grown for nine years in a row, and it is time to review the fleet in order to avoid shortages of capacity. The delivery of the new high- speed ferry HSC Gotlandia II is part of the company’s efforts to keep pace with developments – or indeed stay one step ahead – in order to meet the needs of the service and its users.

In February 2007 the arbitration tribunal announced its ruling on the dispute between Destination Gotland AB and the National Public Transport Agency. The tribunal found in favour of Destination Gotland on all main counts. This means that the company’s interpretation of the agreement is correct, and that it will continue to apply for the remaining two years of the period of agreement.

At the end of 2006 the National Public Transport Agency began a second tender procedure for the Gotland service after 2008. Rederi AB Gotland has submitted a tender for the service through its subsidiary Destination Gotland AB. The key to the decision to submit a tender was the government’s decision that a Swedish shipping company operating the Gotland service would be eligible for shipping aid. The tender is based on the current concept of high-speed ferries. For the company’s part, we are prepared both to continue and to enhance the existing concept.

Finally we would like to extend our thanks to employees for their hard work during the year.