UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the Month of ~~May~~August, 2011

Commission File Number: 33-99284

STENA AB (PUBL)

(Translation of registrant's name into English)

MASTHUGGSKAJEN, SE-405 19 GOTHENBURG, SWEDEN

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ~~........................~~ ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ~~.......................~~ ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of 1934:

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). ~~........................~~ _________

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 27, 2011	By:
Date: August 29, 2011	By:
	STENA AB (PUBL.)
	/s/ Staffan Hultgren
	Name:	Staffan Hultgren
	Title:	Vice President & Deputy CEO and Principal Financial Officer

Stena AB and Consolidated Subsidiaries

Forward-looking statements

This Form 6-K includes statements that are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Some of these statements can be identified as “forward-looking statements” by terms and phrases such as "anticipate," "should," "likely," "foresee," "believe," "estimate," "expect," "intend," "continue," "could," "may," "project," "plan," "predict," "will" and similar expressions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which we operate and include references to assumptions that relate to ~~the~~our future prospects, developments and business strategies. Such statements reflect the current views and assumptions with respect to future events and are subject to risks and uncertainties.

Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Factors that could cause the actual results to differ materially from those expressed or implied in such forward-looking statements, include, but are not limited to:

- changes in general economic and business conditions and markets; - changes in laws and regulations; - changes in International Financial Reporting Standards, IFRS; - changes in currency exchange rates and interest rates; - risks incident to vessel and drilling rig operations, including discharge of pollutants; - introduction of competing products and services by other companies; - changes in trading or travel patterns; - increases in costs of operations or the inability to meet efficiency or cost reduction objectives; - changes in our business strategy; and - other risk factors listed in the reports we furnish to or fil with the Securities and Exchange Commission from time to time.

-	changes in laws and regulations;

-	changes in International Financial Reporting Standards, IFRS;

-	changes in currency exchange rates and interest rates;

-	risks incident to vessel and drilling rig operations, including discharge of pollutants;

-	introduction of competing products and services by other companies;

-	changes in trading or travel patterns;

-	increases in costs of operations or the inability to meet efficiency or cost reduction objectives;

-	changes in our business strategy; and

-	other risk factors listed in the reports we furnish to or file with the Securities and Exchange Commission from time to time.

We do not intend, and undertake no obligation, to revise the forward-looking statements included in this Form 6-K to reflect any future events or circumstances. Our actual results, performance or achievements could differ materially from the results expressed or implied by these forward-looking statements.

Table of Contents	~~Page~~	Page
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Condensed Consolidated Income Statements for the three month periods ended March 31, 2010, and March 31, 2011	3
Condensed Consolidated Income Statements for the three month periods ended June 30, 2010, and June 30, 2011		3
Consolidated Statements of Comprehensive Income for the three month periods ended March 31, 2010 and March 31, 2011	4
Condensed Consolidated Income Statements for the six month periods ended June 30, 2010, and June 30, 2011		4
Condensed Consolidated Balance Sheets as of December 31, 2010 and March 31, 2011	5
Consolidated Statements of Comprehensive Income for the six month periods ended June 30, 2010 and June 30, 2011		5
Consolidated Statements of Changes in Shareholders’ Equity for the three month periods ended March 31, 2010 and March 31, 2011	6
Condensed Consolidated Balance Sheets as of December 31, 2010 and June 30, 2011		6
Condensed Consolidated Statements of Cash Flow for the three month periods ended March 31, 2010, and March 31, 2011	7
Consolidated Statements of Changes in Shareholders’ Equity for the six month periods ended June 30, 2010 and June 30, 2011		7
Notes to Condensed Consolidated Financial Statements	8-9
Condensed Consolidated Statements of Cash Flow for the six month periods ended June 30, 2010, and June 30, 2011		8
OPERATING AND FINANCIAL REVIEW	10-17
Notes to Condensed Consolidated Financial Statements		9 - 10
OTHER FINANCIAL INFORMATION – RESTRICTED GROUP	18 – 22
OPERATING AND FINANCIAL REVIEW		11 - 22
OTHER FINANCIAL INFORMATION – RESTRICTED GROUP		23- 27

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Income Statements (unaudited)

		~~Three month period ended~~			Three month period ended
	March 31, 2010		March 31, 2011
		June 30, 2010						June 30, 2011
		~~SEK~~	~~SEK~~	$	SEK			SEK			$
		(in millions)
Revenues:
Ferry operations		~~1,651~~	~~1,712~~	~~270~~		2,462			2,456			387
Drilling		~~1,838~~	~~1,898~~	~~299~~		1,938			1,751			276
Shipping		~~627~~	~~842~~	~~133~~		733			660			104
Property		~~598~~	~~579~~	91		594			594			94
New Businesses		~~1,025~~	~~996~~	~~157~~		1,370			1,398			221
Other		-	4	1		5			0			0
Total revenues		~~5,739~~	~~6,031~~	~~951~~		7,102			6,859			1,082
Net valuation on investment properties		22	50	8		152			(3	)		(1	)
Net gain on sales of assets		4	-	-		-			24			4
Total other income		26	50	8		152			21			3
Direct operating expenses:
Ferry operations		~~(1,469)~~	~~(1,506)~~	~~(237)~~		(1,784	)		(1,792	)		(283	)
Drilling		~~(664)~~	~~(719)~~	~~(113)~~		(641	)		(742	)		(117	)
Shipping		~~(550)~~	~~(676)~~	~~(107)~~		(627	)		(519	)		(82	)
Property		~~(270)~~	~~(253)~~	~~(40)~~		(192	)		(192	)		(30	)
New Businesses		(764)	(721)	(114)
New Businesses, Adactum						(956	)		(984	)		(155	)
Other		~~(1)~~	-	-		-			(1	)		(0	)
Total direct operating expenses		~~(3,718)~~	~~(3,875)~~	~~(611)~~		(4,200	)		(4,230	)		(667	)
Selling and administrative expenses		~~(782)~~	~~(846)~~	~~(133)~~		(814	)		(806	)		(127	)
Depreciation and amortization		~~(875)~~	~~(854)~~	~~(135)~~		(915	)		(861	)		(136	)
Total operating expenses		~~(5,375)~~	~~(5,575)~~	~~(879)~~		(5,929	)		(5,897	)		(930	)
Income from operations		~~390~~	~~506~~	80		1,325			983			155
Financial income and expense:
Share of affiliated companies results		(13)	(1)	0
Share of affiliated companies’ results						21			16			3
Dividends received		7	3	0		22			34			5
Gain (loss) on securities, net		13	~~197~~	31		(166	)		(5	)		(1	)
Interest income		~~104~~	~~145~~	23		128			93			15
Interest expense		~~(439)~~	~~(439)~~	~~(69)~~		(480	)		(471	)		(74	)
Foreign exchange gains, net		43	16	3
Foreign exchange gains/(losses), net						34			(16	)		(3	)
Other financial expense, net		~~(38)~~	~~(66)~~	~~(11)~~		(132	)		(123	)		(19	)
Total financial income and expense		~~(323)~~	~~(145)~~	~~(23)~~		(573	)		(472	)		(74	)
Income before taxes		67	~~361~~	57		752			511			81
Income taxes		~~(27)~~	~~(5)~~	~~(1)~~		(76	)		(66	)		(10	)
Net income		40	~~356~~	56		676			445			71
Earnings attributable to:
Equity holders of the Parent Company		48	~~359~~	56		679			429			68
Non-controlling interest		~~(8)~~	3	0		(3	)		16			3
Net Income		40	~~356~~	56		676			445			71

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

Condensed Consolidated ~~Statements of Comprehensive~~ Income Statements (unaudited)

	Three months period ended March 31,
		Six month period ended
		2010	2011	2011
		June 30, 2010			June 30, 2011
		SEK	~~SEK~~	$	SEK			$
		(in millions)
Result for the period		40	356	56
Revenues:
Other comprehensive income
Ferry operations			4,113			4,168			658
Fair value gains on available-for-sale financial assets, net of tax		17	272	43
Drilling			3,776			3,649			576
Cash flow hedges, net of tax		(141)	391	62
Shipping			1,360			1,502			237
Currency translation differences		(402)	(952)	(151)
Property			1,192			1,173			185
Equity hedge, net of tax		35	59	9
New Businesses, Adactum			2,395			2,394			378
Total comprehensive income for the period		(452)	126	19
Other			5			4			1
Total comprehensive income attributable to:
Total revenues			12,841			12,890			2,035
- owners of the Parent company		(460)	132	20
Net valuation on investment properties			174			47			7
- Non-controlling interest		8	(6)	(1)
Net gain on sales of assets			4			24			4
		(452)	126	19
Total other income			178			71			11
Direct operating expenses:
Ferry operations			(3,253	)		(3,298	)		(520	)
Drilling			(1,305	)		(1,461	)		(231	)
Shipping			(1,177	)		(1,195	)		(189	)
Property			(462	)		(445	)		(70	)
New Businesses			(1,720	)		(1,705	)		(269	)
Other			(1	)		(1	)		(0	)
Total direct operating expenses			(7,918	)		(8,105	)		(1,279	)
Selling and administrative expenses			(1,596	)		(1,652	)		(261	)
Depreciation and amortization			(1,790	)		(1,715	)		(271	)
Total operating expenses			(11,304	)		(11,472	)		(1,811	)
Income from operations			1,715			1,489			235
Financial income and expense:
Share of affiliated companies’ results			8			15			2
Dividends received			29			37			6
Gain (loss) on securities, net			(153	)		192			30
Interest income			232			238			38
Interest expense			(919	)		(910	)		(144	)
Foreign exchange gains, net			77			0			0
Other financial expense, net			(170	)		(189	)		(30	)
Total financial income and expense			(896	)		(617	)		(98	)
Income before taxes			819			872			137
Income taxes			(103	)		(71	)		(11	)
Net income			716			801			126
Earnings attributable to:
Equity holders of the Parent Company			727			782			123
Non-controlling interest			(11	)		19			3
Net Income			716			801			126

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

~~Condensed~~ Consolidated ~~Balance~~Statements ~~Sheets~~of Comprehensive Income (unaudited)

	December 31, 2010		March 31, 2011
		Six months period ended June 30,
		SEK	SEK	$
		2010			2011			2011
ASSETS		(in millions)
		SEK			SEK			$
Noncurrent assets:
		(in millions)
Intangible assets		2,566	2,756	434
Result for the period			716			801			126
Tangible fixed assets:
Other comprehensive income
Vessels		28,753	28,194	4,445
Fair value gains on available-for-sale financial assets, net of tax			(52	)		171			27
Construction in progress		6,541	5,962	940
Cash flow hedges, net of tax			(116	)		100			16
Equipment		2,462	2,322	366
Currency translation differences			127			(657	)		(104	)
Buildings and land		841	868	137
Equity hedge, net of tax			(9	)		59			9
Ports		1,042	1,001	158
Total comprehensive income for the period			666			474			74
Total tangible fixed assets		39,639	38,347	6,046
Total comprehensive income attributable to:
Property		24,148	24,300	3,831
- owners of the Parent company			666			461			72
Financial fixed assets:
- Non-controlling interest			-			13			2
Investment in associated companies		1,205	1,200	189
			666			474			74
Investment in SPEs		6,175	5,204	820
Marketable securities		4,130	4,216	665
Other assets		4,880	5,287	834
Total financial fixed assets		16,390	15,907	2,508
Total noncurrent assets		82,743	81,310	12,819
Current assets:
Inventories		645	715	113
Trade debtors		2,754	2,931	462
Other receivables		1,116	1,356	214
Prepaid expenses and accrued income		1,888	2,031	320
Short-term investments		4,127	3,354	529
Cash and cash equivalents		1,665	2,227	351
Total current assets		12,195	12,614	1,989
Total assets		94,938	93,924	14,808

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity:
Share Capital	5	5	1
Reserves	(1,096)	(1,317)	(209)
Retained earnings	27,709	30,272	4,774
Net Income	2,566	356	56
Non-controlling interests	264	233	37
Total shareholders’ equity	29,448	29,549	4,659
Noncurrent liabilities:
Deferred income taxes	4,057	4,175	658
Pension liabilities	1,088	1,116	176
Other provisions	1,492	1,533	242
Long-term debt	38,190	37,100	5,849
Debt in SPEs	5,140	4,823	760
Senior notes	6,256	6,171	973
Capitalized lease obligations	1,644	1,574	248
Other noncurrent liabilities	946	1,079	170
Total noncurrent liabilities	58,813	57,571	9,076
Current liabilities:
Short-term debt	1,649	1,546	244
Capitalized lease obligations	225	217	34
Trade accounts payable	1,313	1,433	226
Income tax payable	130	116	18
Other current liabilities	1,024	985	156
Accrued costs and prepaid income	2,336	2,507	395
Total current liabilities	6,677	6,804	1,073
Total shareholders’ equity and liabilities	94,938	93,924	14,808

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

Condensed Consolidated ~~Statements~~Balance ofSheets ~~Changes in Shareholders’ Equity~~ (unaudited)

	Attributable to equity holders of the company
		December 31, 2010				June 30, 2011
(SEK in millions)	Share Capital	Reserves	Retained earnings incl. Net Income	Total	Non-controlling interest	Total Equity
		SEK				SEK			$
Closing balance as of December 31, 2009	5	780	28,087	28,872	311	29,183
		(in millions)
Exchange differences arising on the translation of foreign operations, net of tax		(402)		(402)		(402)
ASSETS
Change in hedging reserve, net of tax
Noncurrent assets:
- bunker hedge		(103)		(103)		(103)
Intangible assets			2,566				2,749			433
- interest swap hedge		(38)		(38)		(38)
Tangible fixed assets:
Change in fair value reserve, net of tax		17		17		17
Vessels			28,753				32,623			5,148
Change in net investment hedge, net of tax		35		35		35
Construction in progress			6,541				6,324			998
Net income recognized directly in equity		(491)		(491)		(491)
Equipment			2,462				2,243			354
Equity method			(50)	(50)		(50)
Buildings and land			841				843			133
Net income			48	48	(8)	40
Ports			1,042				986			156
Total recognized income and expense		(491)	(2)	(493)	(8)	(501)
Total tangible fixed assets			39,639				43,019			6,789
Closing balance as of March 31, 2010	5	289	28,085	28,379	303	28,682
Property			24,148				24,540			3,872
Financial fixed assets:
Investment in associated companies			1,205				1,209			191
Investment in SPEs			6,175				3,746			591
Marketable securities			4,130				4,052			639
Other assets			4,880				5,240			827
Total financial fixed assets			16,390				14,247			2,248
Total noncurrent assets			82,743				84,555			13,342
Current assets:
Inventories			645				651			103
Trade debtors			2,754				3,642			575
Other receivables			1,116				1,370			216
Prepaid expenses and accrued income			1,888				1,690			267
Short-term investments			4,127				3,266			515
Cash and cash equivalents			1,665				1,685			266
Total current assets			12,195				12,304			1,942
Total assets			94,938				96,859			15,284
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity:
Share Capital			5				5			1
Reserves			(1,096	)			(1,517	)		(239	)
Retained earnings			27,709				30,021			4,737
Net Income			2,566				782			123
Non-controlling interests			264				198			31
Total shareholders’ equity			29,448				29,489			4,653
Noncurrent liabilities:
Deferred income taxes			4,057				4,022			635
Pension liabilities			1,088				872			138
Other provisions			1,492				1,514			239
Long-term debt			38,190				40,581			6,403
Debt in SPEs			5,140				4,001			631
Senior notes			6,256				6,295			993
Capitalized lease obligations			1,644				1,543			244
Other noncurrent liabilities			946				1,135			179
Total noncurrent liabilities			58,813				59,963			9,462
Current liabilities:
Short-term debt			1,649				1,617			255
Capitalized lease obligations			225				218			34
Trade accounts payable			1,313				1,230			194
Income tax payable			130				163			26
Other current liabilities			1,024				1,259			199
Accrued costs and prepaid income			2,336				2,920			461
Total current liabilities			6,677				7,407			1,169
Total shareholders’ equity and liabilities			94,938				96,859			15,284

Closing balance as of December 31, 2010	5	(1,096)	30,275	29,184	264	29,448
Acquisition of subsidiary					(25)	(25)
Exchange differences arising on the translation of foreign operations, net of tax		(943)		(943)	(9)	(952)
Change in hedging reserve, net of tax
- bunker hedge		349		349		349
- interest swap hedge		42		42		42
Change in fair value reserve, net of tax		272		272		272
Change in net investment hedge, net of tax		59		59		59
Net income recognized directly in equity		(221)		(221)	(9)	(230)
Net income			353	353	3	356
Total recognized income and expense		(221)	353	132	(6)	126
Closing balance as of March 31, 2011	5	(1,317)	30,628	29,316	233	29,549

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

~~Condensed~~ Consolidated Statements of ~~Cash~~Changes ~~Flow~~in Shareholders’ Equity (unaudited)

		Three month period ended
		Attributable to equity holders of the company
	March 31, 2010		March 31, 2011
(SEK in millions)		Share Capital			Reserves			Retained earnings incl. Net Income			Total			Non- controlling interest			Total Equity
		SEK	SEK	$
Closing balance as of December 31, 2009			5			780			28,087			28,872			311			29,183
		(in millions)
Exchange differences arising on the translation of foreign operations, net of tax						116						116			11			127
Net cash flows from operating activities:
Change in hedging reserve, net of tax
Net income		40	356	56
- bunker hedge						(78	)					(78	)					(78	)
Adjustments to reconcile net income to net cash provided by operating activities:
- interest swap hedge						(38	)					(38	)					(38	)
Depreciation and amortization		875	854	135
Change in fair value reserve, net of tax						(52	)					(52	)					(52	)
Net valuation of investment properties		(22)	(50)	(8)
Change in net investment hedge, net of tax						(9	)					(9	)					(9	)
Gain on sale of property, vessels and equipment		(4)	-	-
Net income recognized directly in equity						(61	)					(61	)		11			(50	)
(Gain) on securities, net		(13)	(197)	(31)
Equity method									(50	)		(50	)					(50	)
Unrealized foreign exchange (gains) losses		(329)	90	14
Net income									727			727			(11	)		716
Deferred income taxes		38	(23)	(4)
Total recognized income and expense						(61	)		677			616						616
Provision for pensions		(40)	50	8
Dividend									(316	)		(316	)					(316	)
Net cash flows from trading securities		(162)	(18)	(3)
Transfer to charity trust									(14	)		(14	)					(14	)
Share of affiliated companies results		13	1	0
Closing balance as of June 30, 2010			5			719			28,434			29,158			311			29,469
Other non-cash items		(83)	160	25
Closing balance as of December 31, 2010			5			(1,096	)		30,275			29,184			264			29,448
Receivables		(54)	(262)	(41)
Acquisition of subsidiary															(25	)		(25	)
Prepaid expenses and accrued income		(258)	(153)	(24)
Subsidiary´s distribution															(54	)		(54	)
Inventories		(50)	(69)	(11)
Exchange differences arising on the translation of foreign operations, net of tax						(751	)					(751	)		(6	)		(757	)
Trade accounts payable		(77)	75	12
Change in hedging reserve, net of tax
Accrued costs and prepaid income		263	181	29
- bunker hedge						189						189						189
Income tax payable		(26)	(10)	(2)
- interest swap hedge						(89	)					(89	)					(89	)
Other current liabilities		20	(164)	(26)
Change in fair value reserve, net of tax						171						171						171
Net cash provided by operating activities		131	821	129
Change in net investment hedge, net of tax						59						59						59
Net cash flows from investing activities:
Net income recognized directly in equity						(421	)					(421	)		(6	)		(427	)
Purchase of intangible assets		(9)	(11)	(2)
Net income									782			782			19			801
Cash proceeds from sale of property, vessels and equipment		131	88	14
Total recognized income and expense						(421	)		782			361			13			374
Capital expenditure on property, vessels and equipment		(1,213)	(1,261)	(199)
Dividend									(240	)		(240	)					(240	)
Purchase of subsidiaries, net of cash acquired		-	(143)	(22)
Transfer to charity trust									(14	)		(14	)					(14	)
Investment in affiliated companies		-	(4)	(1)
Closing balance as of June 30, 2011			5			(1,517	)		30,803			29,291			198			29,489
Proceeds from sale of securities		1,703	1,584	250
Purchase of securities		(1,239)	(985)	(155)
Other investing activities		23	(124)	(20)
Net cash used in investing activities		(604)	(856)	(135)
Net cash flows from financing activities:
Proceeds from issuance of debt		1,964	5	1
Principal payments on debt		(257)	(414)	(65)
Net change in borrowings on line-of-credit agreements		(78)	458	72
Principal payments on capital lease obligations		(20)	(8)	(1)
Net change in restricted cash accounts		(1,041)	620	98
Other financing activities		7	(26)	(4)
Net cash provided by financing activities		575	635	101
Effect of exchange rate changes on cash and cash equivalents		(25)	(38)	(6)
Net change in cash and cash equivalents		77	562	89
Cash and cash equivalents at beginning of period		1,183	1,665	262
Cash and cash equivalents at end of period		1,260	2,227	351

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Statements of Cash Flow (unaudited)

	Six month period ended
	June 30, 2010			June 30, 2011
	SEK			SEK			$
	(in millions)
Net cash flows from operating activities:
Net income		716			801			126
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,790			1,715			271
Net valuation of investment properties		(174	)		(47	)		(7	)
Gain on sale assets		(4	)		(24	)		(4	)
(Gain) on securities, net		153			(192	)		(30	)
Unrealized foreign exchange (gains) losses		(623	)		304			48
Deferred income taxes		(69	)		(33	)		(5	)
Provision for pensions		(121	)		(201	)		(32	)
Net cash flows from trading securities		(9	)		45			7
Share of affiliated companies results		(8	)		(15	)		(2	)
Dividend from affiliated companies		-			10			2
Other non-cash items		(160	)		154			24
Receivables		(314	)		(1,019	)		(161	)
Prepaid expenses and accrued income		74			213			33
Inventories		(96	)		(2	)		0
Trade accounts payable		(41	)		(134	)		(21	)
Accrued costs and prepaid income		727			605			95
Income tax payable		(15	)		37			6
Other current liabilities		85			(56	)		(9	)
Net cash provided by operating activities		1,911			2,161			341

Net cash flows from investing activities:
Purchase of intangible assets		(21	)		(20	)		(3	)
Cash proceeds from sale of property, vessels and equipment		143			167			27
Capital expenditure on property, vessels and equipment		(5,021	)		(6,857	)		(1,082	)
Purchase of subsidiaries, net of cash acquired		-			(143	)		(23	)
Investment in affiliated companies		-			(4	)		(1	)
Proceeds from sale of securities		3,348			3,588			566
Purchase of securities		(2,704	)		(1,483	)		(234	)
Other investing activities		25			(206	)		(33	)
Net cash used in investing activities		(4,230	)		(4,958	)		(783	)

Net cash flows from financing activities:
Proceeds from issuance of debt		3,184			121			19
Principal payments on debt		(3,620	)		(1,543	)		(243	)
Net change in borrowings on line-of-credit agreements		2,836			3,980			628
Proceeds from new capitalized lease obligations		693			-			-
Principal payments on capital lease obligations		(37	)		(44	)		(7	)
Net change in restricted cash accounts		240			627			99
Dividend paid		(316	)		(240	)		(38	)
Other financing activities		(61	)		(97	)		(15	)
Net cash provided by financing activities		2,919			2,804			443

Effect of exchange rate changes on cash and cash equivalents		(297	)		13			2

Net change in cash and cash equivalents		303			20			3

Cash and cash equivalents at beginning of period		1,183			1,665			263

Cash and cash equivalents at end of period		1,486			1,685			266

The accompanying notes form an integral part of these Condensed Consolidated Financial Statements.

Stena AB and Consolidated Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 Basis of presentation

The accompanying condensed consolidated financial statements present the financial position and results of operations of Stena AB (publ) and its subsidiaries (the “Company”) and have been prepared in accordance with IAS 34, “Interim financial reporting”. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2010, which have been prepared in accordance with, International Financial Reporting Standards (“IFRS”).

The interim financial information included in the condensed consolidated financial statements is unaudited, but reflects all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Interim results for the three months ended ~~March~~June 3130, 2011 are not necessarily indicative of the results to be expected for the full year.

Solely for the convenience of the reader, the condensed financial statements for the most recent period have been translated into U.S. dollars (“$”) using the noon buying rate on ~~March~~June 3130, 2011, of $1 = SEK 6.~~3430~~3374.

Note 2 Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended December 31, 2010, as described in those annual financial statements.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

Stena AB and Consolidated Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 3 Segment information

(SEK in millions)	Three month period ~~ended March 31,~~						Six month period
	2010	2011
	ended June 30,						ended June 30,
Income from operations:
	2010			2011			2010			2011
Ferry operations	(303)	(393)
Income from operations:
Drilling	564	625
Ferry operations		142			117			(161	)		(231	)
Shipping: Roll-on/Roll-off vessels	11	29
Drilling		671			471			1,235			1,096
Crude oil tankers	(84)	(68)
Shipping: Roll-on/Roll-off vessels		29			37			40			66
Other shipping	7	60
Crude oil tankers		(67	)		(62	)		(151	)		(130	)
Total shipping ing	(66)	21
Other shipping		1			2			8			62
Property:	282	278
Total shipping		(37	)		(23	)		(103	)		(2	)
Net gain on sale of properties	4	-
Property:		354			356			636			634
Net valuations on investment properties	22	50
Net gain on sale of properties		-			-			4			-
Total property	308	328
Net valuations on investment
New Businesses, Adactum	(29)	10
properties		152			(3	)		174			47
Other	(84)	(85)
Total property		506			353			814			681
Total	390	506
New Businesses, Adactum		121			140			92			150
Other		(78	)		(75	)		(162	)		(205	)
Total		1,325			983			1,715			1,489

(SEK in millions)	Three month ~~period ended March 31,~~periods				Six month periods
	2010	2011
	ended June 30,				ended June 30,
Depreciation and amortization:
	2010		2011		2010		2011
Ferry operations	270	311
Depreciation and amortization:
Drilling	491	429
Ferry operations		285		307		555		618
Shipping: Roll-on/Roll-off vessels	33	36
Drilling		512		419		1,003		848
Crude oil tankers	21	19
Shipping: Roll-on/Roll-off vessels		38		52		71		88
Other shipping	2	2
Crude oil tankers		21		24		42		43
Total shipping	56	57
Other shipping		3		2		5		4
Property	-	1
Total shipping		62		78		118		135
New Businesses, Adactum	53	52
Property		-		1		-		2
Other	5	4
New Businesses, Adactum		56		51		109		103
Total	875	854
Other		-		5		5		9
Total		915		861		1,790		1,715

(SEK in millions)	~~Three~~Six month periods ended ~~March~~June 3130,
	2010	~~2011~~	2011
Capital expenditures:
Ferry operations	~~515~~	~~690~~1,619		1,103
Drilling	~~548~~	~~155~~2,667		401
Shipping: Roll-on/Roll-off vessels	2	~~144~~1		394
Crude oil tankers	3	0198		4,381
Other shipping	3	34		16
Total shipping	8	~~147~~203		4,791
Property	~~123~~	~~185~~301		411
New Businesses, Adactum	11	83221		150
Other	8	110		1
Total	~~1,213~~	15,~~261~~021		6,857

910

Stena AB and Consolidated Subsidiaries

OPERATING AND FINANCIAL REVIEW

The Company generates revenue primarily from ferry operations, chartering out its owned, chartered-in and leased Roll-on/Roll-off vessels, tankers and drilling rigs, managing tankers, sales of vessels and real estate rents. The period from June through September is the peak travel season for passengers of the ferry operations. Chartering activities are not significantly affected by seasonal fluctuations, but variations over the year may occur as a consequence of, among other things, vessel utilization rates, dry-docking and charter rates. Any sale or acquisition of vessels, drilling rigs and real estate also may have an impact on the results of each period.

Highlights of the first ~~three~~six months of 2011

During autumn of 2010, Stena Line entered into an agreement to acquire the Danish travel agency DTF (Dansk Total Ferie), a market leading travel agency for vacations by car in Denmark. The travel agency was acquired as of January 1, 2011.

Stena Line has entered into a slot charter agreement with DFDS on the Esbjerg-Harwich and Esbjerg-Immingham routes. This means that Stena Line as from January 2011 also can offer a freight service between Denmark and UK.

Stena Line has as of ~~December1~~December 1, 2010 from DFDS acquired two routes on the Irish Sea: Liverpool–Belfast and Heysham–Belfast. Since the acquisition iswas subject to a formal approval from the Irish and British competition authority, these routes ~~are~~have ~~being~~been held separated from our other business until the approval iswas given. The Competitions Commission finally cleared, in the end of June, 2011, Stena AB’s completed acquisition of the two Irish Sea ferry services from DFDS A/S. The two routes will be consolidated as from the third quarter 2011.

Stena Transporter, a new built Ropax vessel, was delivered in January from Samsung Heavy Industries in Korea. Stena Transporter is the first vessel of two ordered from Samsung. The vessels are onin operation on the route Hoek van ~~Holland~~Holland and Killingholme.

In February the vessel Highlanders (previously called Stena Traveller) was delivered to the Canadian company Marine Atlantic Inc on a charter for a minimum of five years. Highlanders has been rebuilt in the same way as her sister vessel Blue Puttees (previously called Stena Trader), meaning that the vessel has been shortened by 12 meters and has had its passenger capacity increased. Blue Puttees and Highlanders will operate between North Sydney, Nova Scotia and Port aux Basque, Newfoundland ~~on a charter for a minimum of five years~~.

Stena Bulk A/S and Dannebrog Rederi A/S signed a joint venture agreement on March 25, 2011 regarding the ownership in Stena Weco A/S. The new joint venture, which is in operations as from April 2011, will charter and operate a fleet of 30-40 “MR” (Handy and Medium Range) product tankers.

As of ~~March~~June 3130, 2011 Stena Adactum owns 99100% of the shares in Ballingslöv.

In March 2011, the drilling rig Stena Tay was sold subject to certain conditions being met, with expected delivery in the fourth quarter 2011.

In April 2011 Stena RoRo acquired the vessel, Dublin Seaways, from DFDS for EUR 24 million.

In May 2011 three LNG (Liquified Natural Gas) vessels were acquired for a total purchase price of USD 667 million. The first vessel, Bluesky, was built in 2006 and is on a charter to Gazprom for 22 months. The second and third vessel, Clearsky and Crystalsky, are newly built and were delivered in May 2011.

In May 2011 three vessels, Stena Leader, Stena Pioneer and Stena Seafarer have been sold for an aggregate price of USD 6.5 million.

In May 2011, the English Court of Appeals affirmed a High Court ruling that contributions to repair the deficit in the Merchant Navy Ratings Pension Fund can be required from any company that has participated in the Fund, including companies that no longer employ any members. In the late 1990s, the Fund had been found to have a deficit. Stena Line has been providing funds to reduce the deficit. As a result of the Court of Appeals decision, the non-contributing employers also will be required to contribute funds to reduce the deficit and the Company's future contributions will be significantly reduced.

Stena Property sold one property for SEK 85 million during the first quarter of 2011.

SUBSEQUENT EVENTS

In April, 2011 Stena RoRo acquired the vessel, Dublin Seaways, from DFDS for EUR 24 million.

In May, 2011 three vessels, Stena Leader, Stena Pioneer and Stena Seafarer have been sold for an aggregate price of USD 6.5 million.

The Competition Commission in UK has provisionally cleared Stena AB’s completed acquisition of two Irish Sea ferry services from DFDS A/S. Final report is due in July 2011.

Stena AB and Consolidated Subsidiaries

~~Currency~~SUBSEQUENT ~~effects~~ EVENTS

~~Our~~In ~~revenues~~July ~~and~~2011 ~~expenses, reported in Swedish kronor, are significantly affected by fluctuations in currency exchange rates, primarily relative to~~ the ~~U.S.~~vessel ~~dollar,~~Stena ~~the~~Lynx ~~British~~was ~~pound~~sold ~~and~~for ~~the~~a ~~euro.~~price ~~We seek to mitigate the impact~~ of ~~potential~~EUR ~~adverse foreign currency exchange fluctuations by matching, to the extent possible, revenues and expenses in the same currency~~3.8 ~~In addition, we enter into certain derivative financial instruments~~million. ~~In the period ended March 31, 2011, approximately 39% of our total revenues were generated in U.S. dollars and approximately 27% were generated in SEK.~~

In ~~the~~July ~~period~~2011 ~~ended~~a ~~March 31,~~property ~~2011,~~for ~~approximately~~an ~~33%~~amount of ~~our~~GBP ~~total expenses were incurred in U~~3.S.5 ~~dollars~~million ~~and~~was ~~approximately~~purchased ~~28% were incurred~~ in ~~SEK~~London. ~~The reported gross revenues and expenses were influenced by changes in currency rates. The exchange rates as used for consolidation purposes are as follows:~~

Average rates:	Jan-Mar	Jan-Mar	Change
	2010	2011
US $	7.1918	6.4830	(10)%
British pound	11.2133	10.3899	(7)%
Euro	9.9440	8.8685	(11)%
Closing rates:	As of	As of	Change
	Dec 31, 2010	Mar 31, 2011
US $	6.7273	6.3133	(6)%
British pound	10.4942	10.1316	(3)%
Euro	9.0089	8.9539	(1)%

All three LNG vessels are now on charter to Gazprom, BP and British Gas. The two latter are on operation as from July 2011.

Since part of Stena´s holdings of marketable securities are listed, the general downturn of the world´s exchanges in the third quarter of 2011 will have an adverse impact on Stena if continued.

Stena AB and Consolidated Subsidiaries

~~THREE~~Currency ~~MONTHS ENDED MARCH 31, 2011, COMPARED TO THREE MONTHS ENDED~~effects

~~MARCH~~Our 31revenues and expenses, ~~2010~~reported in Swedish kronor, are significantly affected by fluctuations in currency exchange rates, primarily relative to the U.S. dollar, the British pound and the euro. We seek to mitigate the impact of potential adverse foreign currency exchange fluctuations by matching, to the extent possible, revenues and expenses in the same currency. In addition, we enter into certain derivative financial instruments. In the period ended June 30, 2011, approximately 34% of our total revenues were generated in U.S. dollars and approximately 29% were generated in SEK.

~~Revenues~~In the period ended June 30, 2011, approximately 30% of our total expenses were incurred in U.S. dollars and in SEK, respectively. The reported gross revenues and expenses were influenced by changes in currency rates. The exchange rates as used for consolidation purposes are as follows:

Total revenues increased SEK 292 million, or 5%, in the three months ended March 31, 2011to SEK 6,031 million from SEK 5,739 million in the three months ended March 31, 2010, as a result of increased revenues in all segments except for the property and new businesses operations, offset by the weakening of the U.S. dollar, the Euro and the GBP against the SEK.

Average rates:	April-June		April-June					Jan-June		Jan-June
	2010		2011		Change			2010		2011		Change

US $		7.58		6.27		(17	)%		7.39		6.38		(14	)%
British pound		11.30		10.22		(5	)%		11.25		10.30		(8	)%
Euro		10.79		9.01		(16	)%		9.79		8.94		(9	)%

Closing rates:								As of		As of
								Dec 31, 2010		June 30, 2011		Change

US $									6.7273		6.3035		(6	)%
British pound									10.4942		10.1268		(4	)%
Euro									9.0089		9.1541		2	%

Ferry operations. Ferry revenues are primarily generated from ticket sales, freight haulage and on board sales. Revenues from ferry operations increased SEK 61 million, or 4%, in the three months ended March 31, 2011, to SEK 1,712 million from SEK 1,651 million in the three months ended March 31, 2010, mainly due to increased travel revenues after the consolidation of the Danish travel agency DTF as from January 1, 2011, offset by lower freight haulage revenues and onboard sales as a consequence from lower freight and passenger volumes. Revenues also decreased as an effect of the weakening of the Euro and the GBP against the SEK.

Drilling. Drilling revenues consist of charter hires for our drilling rigs. Revenues from drilling operations increased SEK 60 million, or 3%, in the three months ended March 31, 2011, to SEK 1,898 million from SEK 1,838 million in the three months ended March 31, 2010, mainly reflecting a planned off-hire period for Stena Don, which undertook a five-year special periodic survey in the first quarter of 2010, offset by the weakening of the U.S. dollar against the SEK.

Shipping. Shipping revenues primarily represent charter hires for our owned and chartered in vessels and management fees for vessels managed by us. Revenues from shipping operations increased SEK 215 million, or 34%, in the three months ended March 31, 2011, to SEK 842 million from SEK 627 million in the three months ended March 31, 2010.

Revenues from crude oil tankers increased SEK 138 million, or 29%, in the three months ended March 31, 2011, to SEK 611 million from SEK 473 million in the three months ended March 31, 2010, mainly due to higher operated tonnage, offset by the weakening of the U.S. dollar against the SEK. In the three months ended March 31, 2011, the Company operated an average of 32 tankers (chartered in or owned), compared to an average of 25 tankers in the three months ended March 31, 2010.

Revenues from chartering out Roll-on/Roll-off vessels increased SEK 19 million, or 19%, in the three months ended March 31, 2011, to SEK 118 million from SEK 99 million in the three months ended March 31, 2011, mainly due to new charter contracts with Marine Atlantic for Highlanders and Blue Puttees, offset by the weakening of the Euro against the SEK.

Revenues from Other Shipping increased SEK 58 million, or 105 %, in the three months ended March 31, 2011, to SEK 113 million from SEK 55 million in the three months ended March 31, 2010, mainly due to the receipt of USD 10 million (SEK 64.8 million) for a patent infringement, offset by the weakening of the U.S. dollar and the GBP against the SEK.

Property. Property revenues consist of rents for properties owned and management fees for properties managed by the Company. Revenues from property operations decreased SEK 19 million, or 3%, in the three months ended March 31, 2011, to SEK 579 million from SEK 598 million in the three months ended March 31, 2010, due to lower number of properties together with the weakening of the Euro against the SEK.

New Businesses Adactum. Adactum revenues consist of revenues from Adactum’s subsidiaries. Revenues from Adactum decreased SEK 29 million, or 3%, in the three months ended March 31, 2011, to SEK 996 million from SEK 1,025 million in the three months ended March 31, 2010, mainly due to the strengthening of the SEK affecting both “Envac” and “Ballingslöv”, offset by increased revenues from five new acquired wind power plants near Härnösand in Sweden in April 2010. Of the total revenues in the three months ended March 31, 2011, SEK 526 million related to Ballingslöv, SEK 201 million related to “Blomsterlandet”, SEK 233 million related to Envac and SEK 36 million related to “Stena Renewable”, as compared to SEK 558 million related to Ballingslöv, SEK 205 million related to Blomsterlandet, SEK 245 million related to Envac and SEK 17 million related to Stena Renewable in the three months ended March 31, 2010.

Stena AB and Consolidated Subsidiaries

THREE MONTHS ENDED JUNE 30, 2011, COMPARED TO THREE MONTHS ENDED

JUNE 30, 2010

Revenues

Total revenues decreased SEK 243 million, or 3%, in the three months ended June 30, 2011 to SEK 6,859 million from SEK 7,102 million in the three months ended June 30, 2010, as a result of decreased revenues in all segments except for the New Businesses, Adactum operations, together with the weakening of the U.S. dollar, the Euro and the GBP against the SEK.

Ferry operations. Ferry revenues are primarily generated from ticket sales, freight haulage and on board sales. Revenues from ferry operations decreased SEK 6 million in the three months ended June 30, 2011, to SEK 2,456 million from SEK 2,462 million in the three months ended June 30, 2010, mainly due to lower freight haulage revenues and onboard sales as a consequence of lower freight and passenger volumes together with the weakening of the Euro and the GBP against the SEK, offset by increased travel revenues after the consolidation of the Danish travel agency DTF as from January 1, 2011.

Drilling. Drilling revenues consist of charter hires for our drilling rigs. Revenues from drilling operations decreased SEK 187 million, or 10%, in the three months ended June 30, 2011, to SEK 1,751 million from SEK 1,938 million in the three months ended June 30, 2010, mainly reflecting the weakening of the U.S. dollar against the SEK, a contract at higher day rates for Stena Carron during the first two quarters of 2010 together with reduced revenues for Stena Tay, which was partly off-hire in the end of the second quarter 2011, offset by a planned off-hire period for Stena Clyde, which undertook a five-year special periodic survey in the second quarter of 2010. In local currency revenues increased 9% in the three months ended June 30, 2011, for the drilling operations.

Shipping. Shipping revenues primarily represent charter hires for our owned and chartered in vessels and management fees for vessels managed by us. Revenues from shipping operations decreased SEK 73 million, or 10%, in the three months ended June 30, 2011, to SEK 660 million from SEK 733 million in the three months ended June 30, 2010.

Revenues from crude oil tankers decreased SEK 96 million, or 17%, in the three months ended June 30, 2011, to SEK 468 million from SEK 564 million in the three months ended June 30, 2010, mainly due to the fact that 14 MR vessels are operating in the joint venture Stena Weco A/S as from April 2011, in which the operating results are reported as a net revenue. The operating results, from these vessels, were previously reported gross, with revenues and operating expenses. Revenues also decreased as an effect of the weakening of the U.S. dollar against the SEK, offset by higher day rates in the spot market. In local currency the revenues increased 1% in the three months ended June 30, 2011, for the tanker segment. In the three months ended June 30, 2011, the Company operated an average of 32 tankers (chartered in or owned), compared to an average of 31 tankers in the three months ended June 30, 2010.

Revenues from chartering out Roll-on/Roll-off vessels increased SEK 31 million, or 27%, in the three months ended June 30, 2011, to SEK 145 million from SEK 114 million in the three months ended June 30, 2011, mainly due to new charter contracts with Marine Atlantic for Highlanders and Blue Puttees, offset by the weakening of the Euro against the SEK.

Revenues from Other Shipping decreased SEK 8 million, or 15 %, in the three months ended June 30, 2011, to SEK 47 million from SEK 55 million in the three months ended June 30, 2010, mainly due to the weakening of the U.S. dollar and the GBP against the SEK.

Property. Property revenues consist of rents for properties owned and management fees for properties managed by the Company. Revenues from property operations were SEK 594 million for the three months ended June 30, 2011, same as for the three months ended June 30, 2010.

New Businesses, Adactum. Adactum revenues consist of revenues from Adactum’s subsidiaries. Revenues from Adactum increased SEK 28 million, or 2%, in the three months ended June 30, 2011, to SEK 1,398 million from SEK 1,370 million in the three months ended June 30, 2010, mainly due to increased revenues from “Blomsterlandet”, which has increased its market share and also increased its number of shops, offset by the strengthening of the SEK affecting both “Envac” and “Ballingslöv”. Of the total revenues in the three months ended June 30, 2011, SEK 604 million related to Ballingslöv, SEK 498 million related to “Blomsterlandet”, SEK 274 million related to Envac and SEK 22 million related to “Stena Renewable”, as compared to SEK 616 million related to Ballingslöv, SEK 432 million related to Blomsterlandet, SEK 304 million related to Envac and SEK 18 million related to Stena Renewable in the three months ended June 30, 2010.

Stena AB and Consolidated Subsidiaries

Other income

Net valuation on investment property. As a result of a revaluation to fair value according to IAS 40 “Investment properties”, the Company had net ~~gains~~losses of SEK 503 million for the three months ended ~~March~~June 3130, 2011, as compared to gains of SEK 22152 million for the three months ended ~~March~~June 3130, 2010, ~~mainly~~ due to a minor decrease in investment property market values on the Dutch property market, offset by an increase in investment property market values on the Swedish property market.

Net Gain on Sale of Vessels, Shipping. In the three months ended ~~March~~June 3130, 2011, gains of MSEK 24 were recorded on the sale of the vessels Stena Leader, Stena Pioneer and ~~2010~~Stena Seafarer. In the three months ended June 30, ~~respectively~~2010, no sales of vessels were made.

Net Gain on Sale of Properties. In the three months ended ~~March~~June 3130, 2011 and 2010, respectively, no gain on sale of properties ~~were recorded.~~was ~~In the three months ended March 31, 2010, gains of SEK 4 million were~~ recorded ~~on sale of properties~~.

Direct operating expenses

Total direct operating expenses increased SEK ~~157~~30 million, or 41%, in the three months ended ~~March~~June 3130, 2011, to SEK 34,~~875~~230 million from SEK 34,~~718~~200 million in the three months ended ~~March~~June 3130, 2010, mainly as a result of increased operating expenses in the ~~tanker~~drilling, ~~drilling~~new businesses Adactum and ferry operations, offset by the weakening of the Euro, U.S. dollar and the GBP against the SEK together with lower operating expenses in the ~~property~~shipping ~~and new business segments~~operation.

Ferry operations. Direct operating expenses for ferry operations consist principally of personnel costs, costs of goods sold on the vessels, bunker fuel costs, vessel charter costs, commissions, package tour costs and other related costs. A significant portion of these costs do not vary as a result of changes in our seasonal requirements. Direct operating expenses for ferry operations increased SEK 378 million, ~~or 3%,~~ in the three months ended ~~March~~June 3130, 2011, to SEK 1,~~506~~792 million from SEK 1,~~469~~784 million in the three months ended ~~March~~June 3130, 2011,. ~~mainly~~The ~~due~~increase tomainly reflects increased product costs due to the consolidation of the Danish travel agency DTF as per January 1, 2011, and increased expenses for bunker fuel , offset by lower ship costs due to rationalization with less vessels in operation together with the weakening of the Euro and the GBP against the SEK. Direct operating expenses for ferry operations for the three months ended ~~March~~June 3130, 2011, were 8873% of revenues, as compared to 8972% for the three months ended ~~March~~June 3130, 2010.

Drilling. Direct operating expenses for drilling consist primarily of personnel costs, fuel costs, insurance, maintenance and catering costs. Direct operating expenses for drilling operations increased SEK 55101 million, or 816%, in the three months ended ~~March~~June 3130, 2011, to SEK ~~719~~742 million from SEK ~~664~~641 million in the three months ended ~~March~~June 3130, 2010. The increase mainly reflects a planned off -hire period for Stena ~~Don~~Clyde, which undertook a five-year special periodic survey in the ~~first~~second quarter of 2010, offset by the weakening of the U.S. dollar against the SEK together with reduced expenses for Stena Tay, which was partly off-hire in the end of the second quarter 2011. Direct operating expenses from drilling operations for the three months ended ~~March~~June 3130, 2011 were 3842% of drilling revenues, as compared to 3633% for the three months ended ~~March~~June 3130, 2010.

Shipping. Direct operating expenses for shipping consist primarily of vessel charter costs, fuel costs, personnel costs, insurance and other related vessel costs. Direct operating expenses for shipping operations ~~increased~~decreased SEK ~~126~~108 million, or 2317%, in the three months ended ~~March~~June 3130, 2011 to SEK ~~676~~519 million from SEK ~~550~~627 million in the three months ended ~~March~~June 3130, 2010.

Direct operating expenses associated with crude oil tankers ~~increased~~decreased SEK ~~127~~103 million, or 2618%, in the three months ended ~~March~~June 3130, 2011, to SEK ~~624~~470 million from SEK ~~497~~573 million in the three months ended ~~March~~June 3130, 2010, mainly due to ~~increased~~the ~~number~~fact ofthat 14 MR vessels ~~operated,~~are ~~offset~~operating byunder ~~reduced~~the ~~costs~~joint ofventure Stena Weco A/S as from April 2011, in which the operating ~~fleet~~results ~~together~~are reported as net revenue. The operating results from these vessels were previous reported gross, with revenues and operating expenses. The operating expenses also decreased as an effect of the weakening of the U.S. dollar against the SEK. Direct operating expenses for crude oil operations for the three months ended ~~March~~June 3130, 2011, were ~~102~~100% of revenues, as compared to ~~105~~102% for the three months ended ~~March~~June 3130, 2010. Direct operating expenses for crude oil tankers include time-charter costs, which normally are fixed for periods between 6 months and up to 5 years in advance, while revenues in the spot market vary with each voyage.

Direct operating expenses with respect to Roll-on/Roll-off vessels ~~decreased~~increased by SEK 510 million, or 1126%, in the three months ended ~~March~~June 3130, 2011, to SEK 4148 million from SEK 4638 million in the three months ended ~~March~~June 3130, 2010, mainly due to increased costs of operating the vessels, offset by the weakening of the Euro against the SEK. Direct operating expenses for Roll-on/Roll-off vessels for the three months ended ~~March~~June 3130, 2011, were 3533% of revenues, same as ~~compared to 46%~~ for the three months ended ~~March~~June 3130, 2010.

Direct operating expenses with respect to Other Shipping increased SEK 4 million in the three months ended March 31, 2011 to SEK 11 million from SEK 7 million in the three months ended March 31, 2010. Direct operating expenses for Other Shipping for the three months ended March 31, 2011 were 10% of revenues, as compared to 13% for the three months ended March 31, 2010.15

Stena AB and Consolidated Subsidiaries

~~Property. Property expenses consist primarily of maintenance, heating and personnel costs.~~ Direct operating expenses ~~for~~with ~~property~~respect ~~operations~~to Other Shipping decreased SEK 1715 million, or 694%, in the three months ended ~~March~~June 3130, 2011, to SEK ~~253~~1 million from SEK ~~270~~16 million in the three months ended ~~March~~June 3130, 2010~~, mainly due to reduced operating expenses as a consequence of lower number of properties together with the weakening of the Euro against the SEK~~. Direct operating expenses for ~~property~~Other ~~operations~~Shipping for the three months ended ~~March~~June 3130, 2011, were 442% of ~~property~~ revenues, as compared to 4529% for the three months ended ~~March~~June 3130, 2010.

~~New Businesses Adactum~~Property. ~~Direct~~Property ~~operating~~ expenses ~~for Adactum~~ consist primarily of ~~expenses~~maintenance, ~~from~~heating ~~Adactum’s~~and ~~subsidiaries~~personnel costs. Direct operating expenses for ~~Adactum~~property operations ~~decreased~~amounted ~~SEK 43 million, or 6%, in the three months ended March 31, 2011,~~ to SEK ~~721~~192 million ~~from SEK 764 million~~ in ~~three months ended March 31, 2010, mainly due to lower operating costs in Envac and Ballingslöv due to effective cost control and to some extent due to reduced volumes, together with~~ the ~~weakening of the Euro and the GBP against the SEK. Of the total operating expenses in the~~ three months ended ~~March~~June 3130, 2011, ~~SEK~~the ~~339~~same ~~million related to Ballingslöv, SEK 208 million related to Blomsterlandet, SEK 168 million related to Envac and SEK 4 million related to Stena Renewable,~~ as ~~compared to SEK 360 million related to Ballingslöv, SEK 212 million related to Blomsterlandet, SEK 187 million related to Envac and SEK 3 million related to Stena Renewable~~ in the three months ended ~~March~~June 3130, 2010. Direct operating expenses for ~~Adactum~~property operations for the three months ended ~~March~~June 3130, 2011, were 7232% of property revenues, asthe ~~compared~~same toas ~~75%~~ for the three months ended ~~March~~June 3130, 2010.

New Businesses Adactum. Direct operating expenses for Adactum consist of expenses from Adactum’s subsidiaries. Direct operating expenses for Adactum operations increased SEK 28 million, or 3%, in the three months ended June 30, 2011, to SEK 984 million from SEK 956 million in the three months ended June 30, 2010, mainly due to increased costs of goods sold in Blomsterlandet due to increased sales volumes, offset by lower operating costs in Envac due to effective cost control and to some extent reduced volumes, together with the weakening of the Euro and the GBP against the SEK. Of the total operating expenses in the three months ended June 30, 2011, SEK 384 million related to Ballingslöv, SEK 391 million related to Blomsterlandet, SEK 200 million related to Envac and SEK 6 million related to Stena Renewable, as compared to SEK 383 million related to Ballingslöv, SEK 344 million related to Blomsterlandet, SEK 223 million related to Envac and SEK 4 million related to Stena Renewable in the three months ended June 30, 2010. Direct operating expenses for Adactum operations for the three months ended June 30, 2011, were 70% of revenues, same as for the three months ended June 30, 2010.

Selling and administrative expenses

Selling and administrative expenses ~~increased~~decreased SEK 648 million, or 81%, in the three months ended ~~March~~June 3130, 2011, to SEK ~~846~~806 million from SEK ~~782~~814 million in the three months ended ~~March~~June 3130, 2010, mainly due to ~~increased provisions for estimated pension costs offset by~~ the weakening of the U.S. dollar and the Euro against the SEK, offset by increased expenses related to the consolidation of the Danish travel agency DTF as from January 1, 2011. Total selling and administrative expenses in the three months ended ~~March~~June 3130, 2011, were 1412% of total revenues, ~~same~~ as compared to 11% for the three months ended ~~March~~June 3130, 2010.

Depreciation and amortization

Depreciation and amortization charges decreased SEK 2154 million, or 26%, in the three months ended ~~March~~June 3130, 2011, to SEK ~~854~~861 million from SEK ~~875~~915 million in the three months ended ~~March~~June 3130, 2010, mainly as a result of reduced depreciation charges due to a five-year extension to twenty years of the useful life of the DrillMAX drillships, offset by increased depreciation charges of new vessels delivered. The weakening of the U.S. dollar with respect to the SEK, which primarily impacted depreciation charges on drilling rigs, which are denominated in U.S. dollars, contributed to the decrease in depreciation and amortization charges.

Financial income and expense, net

Financial income and expense, net, improved by SEK ~~178~~101 million in the three months ended ~~March~~June 3130, 2011 to SEK (~~145~~472) million from SEK (~~323~~573) million in the three months ended ~~March~~June 3130, 2010.

Share of affiliated companies’ results in the three months ended ~~March~~June 3130, 2011 and 2010, refers to the Company’s portion of the results of Midsona AB (publ), Gunnebo AB (publ) and MPP MediaTec Group AB. As of ~~March~~June 3130, 2011, the Company’s interest in the capital of Midsona was 23.0%, its interest in the capital of Gunnebo was 25.9% and its interest in the capital of MediaTec was 42.7%. As of ~~March~~June 3130, 2010, the Company’s interest in the capital of Midsona was 23.0%, its interest in the capital of Gunnebo was 25.7% and its interest in the capital of MediaTec was 42.7%.

Net gain (loss) on securities in the three months ended ~~March~~June 3130, 2011, was SEK ~~197~~(5) million, of which SEK 5539 million related to net realized gains on marketable securities and equity securities and investments in Special Purpose Entities (“SPEs”), SEK ~~121~~(65) million related to net unrealized ~~gains~~losses on marketable securities and SEK 21 million related to the termination of the financial lease of Stena Carron. Net gain (loss) on securities in the three months ended ~~March~~June 3130, 2010, was SEK 13(166) million, of which SEK ~~(78)~~119 million related to net realized ~~losses~~gains on marketable securities and equity securities and net losses in investments in Special Purpose Entities (“SPEs”), SEK 66(310) million related to net unrealized losses on marketable securities and SEK 25 million related to the termination of the financial lease of Stena Carron.

Interest income in the three months ended March 31, 2011, increased by SEK 25 million to SEK 145 million from SEK 104 million in the three months ended March 31, 2010, due to increased interest from investment securities. Interest income related to investments in SPEs, included in total interest income, in the three months16

Stena AB and Consolidated Subsidiaries

Interest income in the three months ended ~~March~~June 3130, 2011, decreased by SEK 35 million to SEK 93 million from SEK 128 million in the three months ended June 30, 2010, due to decreased interest income from SPEs offset by increased interest income from investment securities. Interest income for investments in SPEs in the three months ended June 30, 2011, decreased SEK 4(58) million to SEK 7950 million from SEK 75108 million in the three months ended ~~March~~June 3130, 2010.

Interest expense in the three months ended ~~March~~June 3130, 2011, ~~remained~~decreased ~~stable to SEK (439) millionreflecting higher debt outstanding, offset~~ by ~~decreased interest expenses in SPEs. Interest expenses from valuation of interest rate swaps was~~ SEK 179 million ~~for the three months ended March 31, 2011, as compared~~ to SEK 9(471) million ~~for~~from ~~the~~SEK ~~three~~(480) ~~months ended March 31, 2010~~million. Interest expense for investments in SPEs in the three months ended ~~March~~June 3130, 2011, ~~decreased~~increased SEK 42(4) million to SEK (619) million from SEK (4815) million in the three months ended ~~March~~June 3130, 2010.

During the three months ended ~~March~~June 3130, 2011, the Company had foreign exchange ~~gains~~losses, net of SEK (16) million. During the three months ended ~~March~~June 3130, 2010, the Company had foreign exchange gains, net of SEK 4334 million.

Other financial ~~income (~~expense), net, of SEK (66123) million for the three months ended ~~March~~June 3130, 2011, includes SEK (3372) million related to amortization of the deferred financing charges for senior notes, revolving credit facilities, bank loans, capital lease obligations and investments in SPEs and SEK (2157) million related to bunker hedges. Other financial ~~income (~~expense), net, of SEK (38132) million for the three months ended ~~March~~June 3130, 2010, includes SEK (5769) million related to amortization of the deferred financing charges for senior notes, revolving credit facilities, bank loans, capital lease obligations and investments in SPEs and SEK (27) million related to bunker hedges.

Income taxes

Income taxes for the three months ended ~~March~~June 3130, 2011, were SEK (566) million, consisting of current taxes of SEK (2876) million and deferred taxes of SEK 2310 million. Income taxes for the three months ended ~~March~~June 3130, 2010, were SEK (2776) million, consisting of current taxes of SEK 11(183) million and deferred taxes of SEK ~~(38)~~107 million. The provision for taxes is based upon the applicable tax rates in the various jurisdictions where revenues are generated.

1617

Stena AB and Consolidated Subsidiaries

SIX MONTHS ENDED JUNE 30, 2011, COMPARED TO SIX MONTHS ENDED JUNE 30, 2010

Revenues

Total revenues increased SEK 49 million in the six months ended June 30, 2011 to SEK 12,890 million from SEK 12,841 million in the six months ended June 30, 2010, as a result of increased revenues in the ferry, drilling and shipping segments, offset by the weakening of the U.S. dollar, the Euro and the GBP against the SEK.

Ferry operations. Ferry revenues are primarily generated from ticket sales, freight haulage and on board sales. Revenues from ferry operations increased SEK 55 million, or 1%, in the six months ended June 30, 2011, to SEK 4,168 million from SEK 4,113 million in the six months ended June 30, 2010, mainly due to increased travel revenues after the consolidation of the Danish travel agency DTF as from January 1, 2011, offset by lower freight haulage revenues and onboard sales as a consequence from lower freight and passenger volumes. Revenues also decreased as an effect of the weakening of the Euro and the GBP against the SEK.

Drilling. Drilling revenues consist of charter hires for our drilling rigs. Revenues from drilling operations decreased SEK 127 million, or 3%, in the six months ended June 30, 2011, to SEK 3,649 million from SEK 3,776 million in the six months ended June 30, 2010, mainly reflecting the weakening of the U.S. dollar against the SEK, a contract at higher day rates for the rig Stena Carron during the first two quarters of 2010 together with reduced revenues for the rig Stena Tay, which was partly off-hire in the end of the second quarter 2011, offset by planned off-hire periods for Stena Don and Stena Clyde, which both undertook five-year special periodic surveys in the first and second quarter of 2010, respectively. In local currency revenues increased 12% in the six months ended June 30, 2011, for the drilling operations.

Shipping. Shipping revenues primarily represent charter hires for our owned and chartered in vessels and management fees for vessels managed by us. Revenues from shipping operations increased SEK 142 million, or 10%, in the six months ended June 30, 2011, to SEK 1,502 million from SEK 1,360 million in the six months ended June 30, 2010.

Revenues from crude oil tankers increased SEK 42 million, or 4%, in the six months ended June 30, 2011, to SEK 1,079 million from SEK 1,037 million in the six months ended June 30, 2010, mainly due to higher day rates in the spot market, offset by the weakening of the U.S. dollar against the SEK. In local currency revenues increased 21% in the six months ended June 30, 2011, for the tanker segment. In the six months ended June 30, 2011, the Company operated an average of 28 tankers (chartered in or owned), the same as in the six months ended June 30, 2010.

Revenues from chartering out Roll-on/Roll-off vessels increased SEK 50 million, or 23%, in the six months ended June 30, 2011, to SEK 263 million from SEK 213 million in the six months ended June 30, 2011, mainly due to new charter contracts with Marine Atlantic for Highlanders and Blue Puttees, offset by the weakening of the Euro against the SEK.

Revenues from Other Shipping increased SEK 50 million, or 45 %, in the six months ended June 30, 2011, to SEK 160 million from SEK 110 million in the six months ended June 30, 2010, mainly due to the receipt of USD 10 million (SEK 64.8 million) for a patent infringement in the first quarter of 2011, offset by the weakening of the U.S. dollar and the GBP against the SEK.

Property. Property revenues consist of rents for properties owned and management fees for properties managed by the Company. Revenues from property operations decreased SEK 19 million, or 2%, in the six months ended June 30, 2011, to SEK 1,173 million from SEK 1,192 million in the six months ended June 30, 2010, due to a lower number of properties together with the weakening of the Euro against the SEK.

New Businesses, Adactum. Adactum revenues consist of revenues from Adactum’s subsidiaries. Revenues from Adactum decreased SEK 1 million in the six months ended June 30, 2011, to SEK 2,394 million from SEK 2,395 million in the three months ended June 30, 2010, mainly due to the strengthening of the SEK affecting both “Envac” and “Ballingslöv”, offset by increased revenues from “Blomsterlandet”, which has increased its market share and also increased its number of shops. Revenues from “Stena Renewable” also increased due to five new wind power plants near Härnösand in Sweden acquired in April 2010. Of the total revenues in the six months ended June 30, 2011, SEK 1,129 million related to Ballingslöv, SEK 699 million related to “Blomsterlandet”, SEK 508 million related to Envac and SEK 58 million related to “Stena Renewable”, as compared to SEK 1,175 million related to Ballingslöv, SEK 637 million related to Blomsterlandet, SEK 549 million related to Envac and SEK 34 million related to Stena Renewable in the six months ended June 30, 2010.

Stena AB and Consolidated Subsidiaries

Other income

Net valuation on investment property. As a result of a revaluation to fair value according to IAS 40 “Investment properties”, the Company had net gains of SEK 47 million for the six months ended June 30, 2011, as compared to gains of SEK 174 million for the six months ended June 30, 2010, mainly due to an increase in investment property market values on the Swedish property market.

Net Gain on Sale of Vessels, Shipping. In the six months ended June 30, 2011, gains of MSEK 24 were recorded on the sale of the vessels Stena Leader, Stena Pioneer and Stena Seafarer. In the six months ended June 30, 2010, no sales of vessels were made.

Net Gain on Sale of Properties. In the six months ended June 30, 2011, no gain on sale of properties was recorded. In the six months ended June 30, 2010, gains of SEK 4 million were recorded on sale of properties.

Direct operating expenses

Total direct operating expenses increased SEK 187 million, or 2%, in the six months ended June 30, 2011, to SEK 8,105 million from SEK 7,918 million in the six months ended June 30, 2010, mainly as a result of increased operating expenses in the drilling, ferry and tanker operations, offset by the weakening of the U.S. dollar, Euro and the GBP against the SEK together with lower operating expenses in the property and new business segments.

Ferry operations. Direct operating expenses for ferry operations consist principally of personnel costs, costs of goods sold on the vessels, bunker fuel costs, vessel charter costs, commissions, package tour costs and other related costs. A significant portion of these costs do not vary as a result of changes in our seasonal requirements. Direct operating expenses for ferry operations increased SEK 45 million, or 1%, in the six months ended June 30, 2011, to SEK 3,298 million from SEK 3,253 million in the six months ended June 30, 2011, mainly due to increased product costs due to the consolidation of the Danish travel agency DTF as from January 1, 2011, and increased expenses for bunker fuel, offset by lower ship costs due to rationalization with less vessels in operation, together with the weakening of the Euro and the GBP against the SEK. Direct operating expenses for ferry operations for the six months ended June 30, 2011, were 79% of revenues, same as for the six months ended June 30, 2010.

Drilling. Direct operating expenses for drilling consist primarily of personnel costs, fuel costs, insurance, maintenance and catering costs. Direct operating expenses for drilling operations increased SEK 156 million, or 12%, in the six months ended June 30, 2011, to SEK 1,461 million from SEK 1,305 million in the six months ended June 30, 2010. The increase mainly reflects planned off-hire periods for Stena Don and Stena Clyde, which both undertook five-year special periodic surveys in the first and second quarter of 2010, respectively, offset by the weakening of the U.S. dollar against the SEK. Direct operating expenses from drilling operations for the six months ended June 30, 2011 were 40% of drilling revenues, as compared to 35% for the six months ended June 30, 2010.

Shipping. Direct operating expenses for shipping consist primarily of vessel charter costs, fuel costs, personnel costs, insurance and other related vessel costs. Direct operating expenses for shipping operations increased SEK 18 million, or 2%, in the six months ended June 30, 2011 to SEK 1,195 million from SEK 1,177 million in the six months ended June 30, 2010.

Direct operating expenses associated with crude oil tankers increased SEK 24 million, or 2%, in the six months ended June 30, 2011, to SEK 1,094 million from SEK 1,070 million in the six months ended June 30, 2010, mainly due to, offset by the weakening of the U.S. dollar against the SEK. Direct operating expenses for crude oil operations for the six months ended June 30, 2011, were 101% of revenues, as compared to 103% for the six months ended June 30, 2010. Direct operating expenses for crude oil tankers include time-charter costs, which normally are fixed for periods between 6 months and up to 5 years in advance, while revenues in the spot market vary with each voyage.

Direct operating expenses with respect to Roll-on/Roll-off vessels increased by SEK 5 million, or 6%, in the six months ended June 30, 2011, to SEK 89 million from SEK 84 million in the six months ended June 30, 2010, mainly due to increased costs of the operating vessels, offset by the weakening of the Euro against the SEK. Direct operating expenses for Roll-on/Roll-off vessels for the six months ended June 30, 2011, were 34% of revenues, as compared to 39% for the six months ended June 30, 2010.

Direct operating expenses with respect to Other Shipping decreased SEK 11 million, or 48%, in the six months ended June 30, 2011 to SEK 12 million from SEK 23 million in the six months ended June 30, 2010. Direct operating expenses for Other Shipping for the six months ended June 30, 2011 were 8% of revenues, as compared to 21% for the six months ended June 30, 2010.

Stena AB and Consolidated Subsidiaries

Property. Property expenses consist primarily of maintenance, heating and personnel costs. Direct operating expenses for property operations decreased SEK 17 million, or 4%, in the six months ended June 30, 2011, to SEK 445 million from SEK 462 million in the six months ended June 30, 2010, mainly due to reduced operating expenses as a consequence of a lower number of properties together with the weakening of the Euro against the SEK. Direct operating expenses for property operations for the six months ended June 30, 2011, were 38% of property revenues, as compared to 39% for the six months ended June 30, 2010.

New Businesses Adactum. Direct operating expenses for Adactum consist of expenses from Adactum’s subsidiaries. Direct operating expenses for Adactum operations decreased SEK 15 million, or 1%, in the six months ended June 30, 2011, to SEK 1,705 million from SEK 1,720 million in six months ended June 30, 2010, mainly due to lower operating costs in Envac and Ballingslöv due to effective cost control and to some extent due to reduced volumes, together with the weakening of the Euro and the GBP against the SEK, offset by increased costs of goods sold in Blomsterlandet due to increased sales volumes. Of the total operating expenses in the six months ended June 30, 2011, SEK 723 million related to Ballingslöv, SEK 599 million related to Blomsterlandet, SEK 368 million related to Envac and SEK 10 million related to Stena Renewable, as compared to SEK 744 million related to Ballingslöv, SEK 555 million related to Blomsterlandet, SEK 410 million related to Envac and SEK 7 million related to Stena Renewable in the six months ended June 30, 2010. Direct operating expenses for Adactum operations for the six months ended June 30, 2011, were 71% of revenues, as compared to 72% for the six months ended June 30, 2010.

Selling and administrative expenses

Selling and administrative expenses increased SEK 56 million, or 4%, in the six months ended June 30, 2011, to SEK 1,652 million from SEK 1,596 million in the six months ended June 30, 2010, mainly due to the consolidation of the Danish travel agency DTF as from January 1, 2011, offset by the weakening of the U.S. dollar and the Euro against the SEK. Total selling and administrative expenses in the six months ended June 30, 2011, were 13% of total revenues, as compared to 12% for six months ended June 30, 2010.

Depreciation and amortization

Depreciation and amortization charges decreased SEK 75 million, or 4%, in the six months ended June 30, 2011, to SEK 1,715 million from SEK 1,790 million in the six months ended June 30, 2010, mainly as a result of reduced depreciation charges due to a five-year extension to twenty years of the useful life of the DrillMAX drillships, offset by increased depreciation charges of new vessels delivered. The weakening of the U.S. dollar with respect to the SEK, which primarily impacted depreciation charges on drilling rigs, which are denominated in U.S. dollars, contributed to the decrease in depreciation and amortization charges.

Financial income and expense, net

Financial income and expense, net, improved by SEK 279 million in the six months ended June 30, 2011 to SEK (617) million from SEK (896) million in the six months ended June 30, 2010.

Share of affiliated companies’ results in the six months ended June 30, 2011 and 2010, refers to the Company’s portion of the results of Midsona AB (publ), Gunnebo AB (publ) and MPP MediaTec Group AB. As of June 30, 2011, the Company’s interest in the capital of Midsona was 23.0%, its interest in the capital of Gunnebo was 25.9% and its interest in the capital of MediaTec was 42.7%. As of June 30, 2010, the Company’s interest in the capital of Midsona was 23.0%, its interest in the capital of Gunnebo was 25.7% and its interest in the capital of MediaTec was 42.7%.

Net gain (loss) on securities in the six months ended June 30, 2011, was SEK 192 million, of which SEK 95 million related to net realized gains on marketable securities and equity securities and investments in Special Purpose Entities (“SPEs”), SEK 55 million related to net unrealized gains on marketable securities and SEK 42 million related to the termination of the financial lease of Stena Carron. Net gain (loss) on securities in the six months ended June 30, 2010 was SEK (153) million, of which SEK 42 million related to net realized gains on marketable securities and equity securities and net losses in investments in Special Purpose Entities (“SPEs”), SEK (245) million related to net unrealized losses on marketable securities and SEK 50 million related to the termination of the financial lease of Stena Carron.

Stena AB and Consolidated Subsidiaries

Interest income in the six months ended June 30, 2011, increased by SEK 6 million to SEK 238 million from SEK 232 million in the six months ended June 30, 2010 due to increased interest rates from investment securities offset by a decrease of the interest income in SPEs. Interest income related to investments in SPEs, included in total interest income, in the six months ended June 30, 2011, decreased SEK 54 million to SEK 129 million from SEK 183 million in the six months ended June 30, 2010.

Interest expense in the six months ended June 30, 2011, decreased by SEK (9) million to SEK (910) million from SEK (919) million reflecting higher debt outstanding, offset by decreased interest expenses in SPEs. Interest expense for investments in SPEs in the six months ended June 30, 2011, decreased SEK 38 million to SEK (25) million from SEK (63) million in the six months ended June 30, 2010.

During the six months ended June 30, 2011, the Company had foreign exchange gains, net of SEK 0 million. During the six months ended June 30, 2010, the Company had foreign exchange gains, net of SEK 77 million.

Other financial income (expense) of SEK (189) million for the six months ended June 30, 2011, includes SEK (83) million related to amortization of the deferred financing charges for senior notes, revolving credit facilities, bank loans, capital lease obligations and investments in SPEs and SEK (78) million related to bunker hedges. Other financial income (expense) of SEK (170) million for the six months ended June 30, 2010 includes SEK (132) million related to amortization of the deferred financing charges for senior notes, revolving credit facilities, bank loans, capital lease obligations and investments in SPEs and SEK (27) million related to the repurchase of the senior notes 2013.

Income taxes

Income taxes for the six months ended June 30, 2011, were SEK (71) million, consisting of current taxes of SEK (104) million and deferred taxes of SEK 33 million. Income taxes for the six months ended June 30, 2010 were SEK (103) million, consisting of current taxes of SEK (172) million and deferred taxes of SEK 69 million. The provision for taxes is based upon the applicable tax rates in the various jurisdictions where revenues are generated.

Stena AB and Consolidated Subsidiaries

Liquidity and Capital Resources

Our liquidity requirements principally relate to servicing of debt, financing the purchase of vessels and other assets and funding of working capital. InHistorically ~~prior years,~~ we have met our liquidity requirements with cash on hand, cash flows from operations, borrowings under various credit facilities and other financing and refinancing arrangements.

As of ~~March 31~~June 30, 2011, we had total cash and marketable securities of SEK 9,~~797~~003 million as compared with SEK 9,922 million as of December 31, 2010.

For the ~~three~~six months ended ~~March~~June 3130, 2011, cash flows provided by operating activities amounted to SEK ~~821~~2,161 million, as compared to SEK ~~131~~1,911 million in the first ~~three~~six months ended ~~March~~June 3130, 2010. For the ~~three~~six months ended ~~March~~June 3130, 2011, cash flows used in investing activities amounted to SEK ~~856~~(4,958) million, including SEK 1(6,~~261~~857) million related to capital expenditures. For the ~~three~~six months ended ~~March~~June 3130, 2010, cash flows used in investing activities amounted to SEK ~~604~~(4,230) million, including SEK 1(5,~~213~~021) million related to capital expenditures. Cash flows provided byfrom financing activities for the ~~three~~six months ended ~~March~~June 3130, 2011 amounted to SEK ~~635~~2,804 million. For the ~~three~~six months ended ~~March~~June 3130, 2010, cash flows provided byfrom financing activities amounted to SEK ~~575~~2,919 million.

Total construction in progress as of ~~March~~June 3130, 2011, was SEK 56,~~962~~324 million, as compared to SEK 6,541 million as of December 31, 2010. The remaining capital expenditure commitment for new buildings on order as of ~~March~~June 3130, 2011, was SEK 3,~~896~~633 million, of which SEK ~~1,231~~973 million is due during 2011, SEK 2,~~422~~419 million is due during 2012 and SEK 242 million is due during 2013. Financing for approximately 8687% of the unpaid balance has already been arranged. The Company plans to finance the remainder of this unpaid balance, together with additional expenses and financing costs, through cash from operations, existing revolving credit facilities, new capital lease agreements, new bank loans and other financing arrangements.

Total interest bearing debt as of ~~March 31~~June 30, 2011, was SEK 4650,~~608~~254 million, excluding debt in SPEs, as compared with SEK 47,964 million as of December 31, 2010. Interest bearing debt in SPEs as of ~~March 31~~June 30, 2011, was SEK 4,~~823~~001 million as compared with SEK 5,140 million as of December 31, 2010. As of ~~March 31~~June 30, 2011, $~~909~~788 million was utilized under our $1 billion revolving credit facility, including $28 million used for issuing bank guarantees and letters of credit. As of December 31, 2010, $909 million was utilized under our $1 billion revolving credit facility, including $25 million used for issuing bank guarantees and letters of credit. As of ~~March~~June 3130, 2011, $~~163~~145 was utilized under the $200 million revolving credit facility entered into by Stena Royal S.àr.l. (“Stena Royal”) compared to $107 as of December 31, 2010. As of ~~March~~June 3130, 2011, the SEK 450 million facility in Adactum was fully utilized compared to SEK 418 million as of December 31, 2010. During 2010 we entered into a new SEK 6,660 million revolving credit facility with Svenska Handelsbanken and Nordea and guaranteed by EKN. ~~This~~As of June 30, 2011 this facility was ~~unutilized~~utilized aswith ofSEK ~~March 31~~4,003 ~~2011,~~million and unutilized as of December 31, 2010~~, respectively~~.

We believe that, based on current levels of operating performance and anticipated market conditions, cash flow from operations, together with other available sources of funds, including refinancing, will be adequate to make required payments of principal and interest on outstanding debt, to permit proposed capital expenditures, including newbuildings, other vessel acquisitions, and ~~our commitment with respect~~ to ~~the Loch Ryan facility, and to~~ fund anticipated working capital requirements.

1722

Stena AB and Consolidated Subsidiaries

OTHER FINANCIAL INFORMATION – RESTRICTED GROUP

For the ~~three~~six months ended ~~March 31~~June 30, 2011, Restricted Group Data represents the selected consolidated financial information excluding (i) the property business segment (other than two small properties), (ii) the ~~business~~new ~~segment~~businesses of Adactum segment, whose activities consist primarily of investing in companies outside our traditional lines of business, and (iii) our subsidiaries Stena Investment Luxembourg S.àr.l., Stena Royal, Stena Investment Cyprus Ltd and Mondaldi Ltd. Our real estate operations and the business of Adactum are conducted through various subsidiaries. For purposes of the indentures under which our Senior Notes were issued, real estate business and new businesses, Adactum, together with our subsidiaries Stena Investment Luxembourg S.àr.l., Stena Royal, Stena Investment Cyprus Ltd and Mondaldi Ltd, are designated as unrestricted subsidiaries and, as a result, are not bound by the restrictive provisions of these indentures.

In March 2010, we completed an offering of €200 million of Senior Notes due 2020. In April 2010, we redeemed the total $153 million outstanding principal amount of our Senior Notes due 2013 at a price of 102.5%. As of December 31, 2010, we had outstanding $128.8 million principal amount of Senior Notes due 2016, €300 million principal amount of Senior Notes due 2017, €102 million principal amount of Senior Notes due 2019 and €200 million principal amount of Senior Notes due 2020.

As of ~~March 31~~June 30, 2011, we had outstanding $128.8 million principal amount of Senior Notes due 2016, €300 million principal amount of Senior Notes due 2017, €102 million principal amount of Senior Notes due 2019 and €200 million principal amount of Senior Notes due 2020.

Amounts in U.S. dollars have been translated, solely for the convenience of the reader, at an exchange rate of $1.00 = SEK 6.~~3430~~3374, the noon buying rate on ~~March~~June 3130, 2011.

1823

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Income Statements – Restricted group

	Three month period ended
		Six month period ended
	March 31, 2010		March 31, 2011
		June 30, 2010						June 30, 2011
	~~(unaudited)~~	(unaudited)
		~~SEK~~	~~SEK~~	$	SEK			SEK			$
		(in millions)
Revenues:
Ferry operations		~~1,651~~	~~1,712~~	~~270~~		4,113			4,168			658
Drilling		~~1,838~~	~~1,898~~	~~299~~		3,776			3,649			576
Shipping		~~627~~	~~842~~	~~133~~		1,360			1,502			237
Property		2	2	0		4			4			1
Other		1	4	1		4			4			1
Total revenues		~~4,119~~	~~4,458~~	~~703~~		9,257			9,327			1,473
Net gain on sales of assets		-	-	-		-			24			4
Total other income		-	-	-		-			24			4
Direct operating expenses:
Ferry operations		~~(1,469)~~	~~(1,506)~~	~~(237)~~		(3,253	)		(3,298	)		(520	)
Drilling		~~(664)~~	~~(719)~~	~~(113)~~		(1,305	)		(1,461	)		(231	)
Shipping		~~(550)~~	~~(676)~~	~~(107)~~		(1,177	)		(1,195	)		(189	)
Property		~~(2)~~	~~(1)~~	0		(1	)		(2	)		(0	)
Other		~~(1)~~	0	0		(1	)		(1	)		(0	)
Total direct operating expenses		~~(2,686)~~	~~(2,902)~~	~~(457)~~		(5,737	)		(5,957	)		(940	)
Selling and administrative expenses		~~(487)~~	~~(575)~~	~~(91)~~		(1,010	)		(1,106	)		(176	)
Depreciation and amortization		~~(822)~~	~~(801)~~	~~(126)~~		(1,684	)		(1,611	)		(254	)
Total operating expenses		~~(3,995)~~	~~(4,278)~~	~~(674)~~		(8,431	)		(8,674	)		(1,370	)
Income from operations		~~124~~	~~180~~	29		826			677			107
Financial income and expenses:
Dividends received		3	1	0		12			16			2
Gain (loss) on securities, net		73	90	14		(142	)		40			6
Interest income		26	68	11		66			137			22
Interest expense		~~(266)~~	~~(297)~~	~~(47)~~		(546	)		(585	)		(92	)
Foreign exchange gains (losses), net		39	13	2		75			(1	)		0
Other financial income (expenses), net		11	~~(49)~~	~~(8)~~		(79	)		(129	)		(20	)
Total financial income and expenses		~~(114)~~	~~(174)~~	~~(28)~~		(614	)		(522	)		(82	)
Income after financial income and expenses		10	6	1		212			155			25
Non-controlling interest		0	~~(3)~~	0		-			(3	)		(1	)
Income before tax		10	3	0		212			152			25
Income taxes		~~(15)~~	42	7		22			52			8
Net income		~~(5)~~	45	8		234			204			32

1924

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Balance Sheets – Restricted Group

	~~December 31, 2010~~	December 31, 2010	~~March 31, 2011~~				June 30, 2011
		(unaudited)
		~~SEK~~	~~SEK~~	$	SEK		SEK		$
		(in millions)
ASSETS
Noncurrent assets:
Intangible assets		~~262~~	~~458~~	72		262		451		71
Tangible fixed assets:
Vessels		~~28,753~~	~~28,194~~	~~4,445~~		28,753		32,623		5,148
Construction in progress		~~6,277~~	~~5,655~~	~~892~~		6,277		5,880		928
Equipment		~~1,580~~	~~1,465~~	~~231~~		1,580		1,403		221
Ports		~~1,042~~	~~1,001~~	~~158~~		1,042		986		156
Property		~~498~~	~~495~~	78		498		508		80
Total tangible fixed assets		~~38,150~~	~~36,810~~	~~5,804~~		38,150		41,400		6,533
Financial fixed assets:
Marketable securities		~~789~~	~~793~~	~~125~~		789		749		118
Intercompany accounts, noncurrent		~~6,100~~	~~5,711~~	~~900~~		6,100		5,924		935
Other assets		~~7,169~~	~~7,532~~	~~1,187~~		7,169		7,657		1,208
Total noncurrent assets		~~52,470~~	~~51,304~~	~~8,088~~		52,470		56,181		8,865
Current assets:
Inventories		~~290~~	~~299~~	47		290		244		38
Trade debtors		~~2,051~~	~~2,270~~	~~358~~		2,051		2,904		458
Other receivables		~~977~~	~~1,107~~	~~175~~		977		1,218		192
Intercompany accounts, current		~~270~~	~~460~~	73		270		-		-
Prepaid expenses and accrued income		~~1,450~~	~~1,615~~	~~254~~		1,450		1,234		195
Short-term investments		~~3,613~~	~~2,352~~	~~371~~		3,613		2,507		396
Cash and cash equivalents		~~727~~	~~1,323~~	~~209~~		727		936		148
Total current assets		~~9,378~~	~~9,426~~	~~1,487~~		9,378		9,043		1,427
Total assets		~~61,848~~	~~60,730~~	~~9,575~~		61,848		65,224		10,292
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity:
Share Capital						5		5		1
Reserves						22,298		22,373		3,530
Equity attributable to shareholders of the company						22,303		22,378		3,531
Non-controlling interest						103		106		17
Total Equity						22,406		22,484		3,548
Noncurrent liabilities:
Deferred income taxes						943		830		131
Other provisions						2,445		2,255		356
Long-term debt						22,866		24,946		3,936
Senior notes						6,256		6,295		993
Capitalized lease obligations						1,639		1,537		243
Other noncurrent liabilities						874		1,055		166
Total noncurrent liabilities						35,023		36,918		5,825
Current liabilities:
Short-term debt						1,376		1,345		212
Capitalized lease obligations						223		217		34
Trade accounts payable						557		544		86
Income tax payable						105		132		21
Other liabilities						571		892		141
Intercompany accounts, current						-		432		68
Accrued costs and prepaid income						1,587		2,260		357
Total current liabilities						4,419		5,822		919
Total shareholders’ equity and liabilities						61,848		65,224		10,292

~~SHAREHOLDERS’ EQUITY AND LIABILITIES~~25

Shareholders’ equity:
Share Capital	5	5	1
Reserves	22,298	22,214	3,502
Equity attributable to shareholders of the company	22,303	22,219	3,503
Non-controlling interest	103	106	17
Total Equity	22,406	22,325	3,520
Noncurrent liabilities:
Deferred income taxes	943	1,003	158
Other provisions	2,445	2,532	400
Long-term debt	22,866	21,402	3,374
Senior notes	6,256	6,171	973
Capitalized lease obligations	1,639	1,569	247
Other noncurrent liabilities	874	998	157
Total noncurrent liabilities	35,023	33,675	5,309
Current liabilities:
Short-term debt	1,376	1,336	211
Capitalized lease obligations	223	215	34
Trade accounts payable	557	709	112
Income tax payable	105	89	14
Other liabilities	571	555	87
Accrued costs and prepaid income	1,587	1,826	288
Total current liabilities	4,419	4,730	746
Total shareholders’ equity and liabilities	61,848	60,730	9,575

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Statements of Cash Flow – Restricted Group

	Three month period ended
		Six month period ended
	March 31, 2010		March 31, 2011
		June 30, 2010						June 30, 2011
	~~(unaudited)~~	(unaudited)
		~~SEK~~	~~SEK~~	$	SEK			SEK			$
		(in millions)
Net cash flows from operating activities:
Net income		~~(5)~~	45	8		234			204			32
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		~~822~~	~~801~~	~~126~~		1,684			1,611			254
(Gain) loss on securities, net		~~(73)~~	~~(90)~~	~~(14)~~		142			(40	)		(6	)
Unrealized foreign exchange (gains) losses		(430)	26	4
Gain on sale assets						-			(24	)		(4	)
Deferred income taxes		34	(55)	(9)
Unrealized foreign exchange (gains) losses						(754	)		255			41
Non-controlling interest		0	3	0
Deferred income taxes						(156	)		(116	)		(18	)
Other non-cash items		(66)	158	25
Non-controlling interest						-			3			0
Provision for pensions		(36)	50	8
Other non-cash items						(168	)		153			24
Net cash flows from trading securities		(147)	(42)	(7)
Provision for pensions						(117	)		(201	)		(32	)
Changes in working capital		(339)	(188)	(30)
Net cash flows from trading securities						(15	)		49			8
Net cash provided by/used in operating activities		(240)	708	111
Changes in working capital						353			(9	)		(1	)
Net cash flows from investing activities:
Net cash provided by/used in operating activities						1,203			1,885			298
Purchase of intangible assets		(6)	(9)	(1)
Net cash flows from investing activities:
Cash proceeds from sale of property, vessels and equipment		1	1	0
Purchase of intangible assets						(13	)		(16	)		(2	)
Capital expenditure on property, vessels and equipment		(1,079)	(993)	(156)
Cash proceeds from sale of property, vessels and equipment						8			79			12
Purchase of subsidiaries, net of cash acquired		-	(119)	(19)
Capital expenditure on property, vessels and equipment						(4,501	)		(6,293	)		(993	)
Proceeds from sale of securities		55	84	13
Purchase of subsidiaries, net of cash acquired						-			(119	)		(19	)
Purchase of securities		(94)	(53)	(8)
Proceeds from sale of securities						54			109			17
Other investing activities		(114)	(28)	(4)
Purchase of securities						(225	)		(85	)		(13	)
Net cash used in investing activities		(1,237)	(1,117)	(175)
Other investing activities						(86	)		(137	)		(22	)
Net cash flows from financing activities:
Net cash used in investing activities						(4,763	)		(6,462	)		(1,020	)
Proceeds from issuance of debt		1,950	3	1
Net cash flows from financing activities:
Principal payments on debt		(244)	(401)	(63)
Proceeds from issuance of debt						3,015			29			5
Net change in borrowings on line-of-credit agreements		(81)	130	21
Principal payments on debt						(1,618	)		(591	)		(93	)
Principal payments on capital lease obligations		(20)	(8)	(1)
Net change in borrowings on line-of-credit agreements						2,836			3,704			585
Net change in restricted cash accounts		(341)	1,227	193
Proceeds from new capitalized lease obligations						693			-			-
Intercompany accounts		35	62	9
Principal payments on capital lease obligations						(37	)		(44	)		(7	)
Other financing activities		6	9	1
Net change in restricted cash accounts						(508	)		958			151
Net cash used in/provided by financing activities		1,305	1,022	161
Intercompany accounts						(200	)		773			121
Effect of exchange rate changes on cash and cash equivalents		(12)	(17)	(3)
Dividends paid						(316	)		(240	)		(38	)
Net change in cash and cash equivalents		(184)	596	94
Other financing activities						137			174			27
Cash and cash equivalents at beginning of period		568	727	115
Net cash used in/provided by financing activities						4,002			4,763			751
Cash and cash equivalents at end of period		384	1,323	209
Effect of exchange rate changes on cash and cash equivalents						(298	)		23			4
Net change in cash and cash equivalents						144			209			33
Cash and cash equivalents at beginning of period						568			727			115
Cash and cash equivalents at end of period						712			936			148

2126

Stena AB and Consolidated Subsidiaries

Other data – Restricted Group

Three month period ended

Six month period ended

March 31, 2010

March 31, 2011

June 30, 2010

June 30, 2011

~~SEK~~

SEK

(in millions)

OTHER DATA:

Adjusted EBITDA

~~972~~

~~1,049~~

~~166~~

2,576

2,425

384

Adjusted EBITDA is defined as income from operations plus cash dividends received from affiliated companies, interest income, depreciation and amortization, non-controlling interest and non-cash charges minus aggregate gains on vessel dispositions to the extent such gains exceed 25% of Adjusted EBITDA net of all such gains. Information concerning Adjusted EBITDA is included because it conforms to the definition of Consolidated Cash Flow in the indentures governing our Senior Notes. Adjusted EBITDA is not a measure in accordance with IFRS and should not be used as an alternative to cash flows or as a measure of liquidity and should be read in conjunction with the condensed consolidated statements of cash flows contained in our condensed consolidated financial statements included elsewhere herein.

The computation of Adjusted EBITDA and reconciliation to net cash provided by operating activities is presented below:

	Three month period ended
		Six month period ended
	March 31, 2010		March 31, 2011
		June 30, 2010						June 30, 2011
		~~SEK~~	~~SEK~~	$	SEK			SEK			$
		(in millions)
Income from operations		~~124~~	~~180~~	29		826			677			108
Adjustments:
Interest income		26	68	11		66			137			22
Depreciation and amortization		~~822~~	~~801~~	~~126~~		1,684			1,611			254
Adjusted EBITDA		~~972~~	~~1,049~~	~~166~~		2,576			2,425			384
Adjustments:
Gain on sale of vessels		-	-	-		-			(24	)		(4	)
Net cash flows from trading securities		~~(147)~~	~~(42)~~	~~(7)~~		(15	)		49			8
Interest expenses		(266)	(297)	(47)
Interest expense						(546	)		(585	)		(92	)
Unrealized foreign exchange (gains) losses		~~(430)~~	26	4		(754	)		255			41
Provisions for pensions		~~(36)~~	50	8		(117	)		(201	)		(32	)
Other non cash items		~~(66)~~	~~158~~	25		(168	)		153			24
Changes in working capital		~~(339)~~	~~(188)~~	~~(30)~~		353			(9	)		(1	)
Other items		72	~~(48)~~	~~(8)~~		(126	)		(178	)		(30	)
Net cash provided by operating activities		~~(240)~~	~~708~~	~~111~~		1,203			1,885			298

2227

Filing Compare · STENA AB