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, 2012

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): ¨______

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 29, 2012		STENA AB (PUBL.)
Date: August 30, 2012	STENA AB (PUBL.)
	By:	~~By:~~/s/ Staffan Hultgren	~~/s/ Staffan Hultgren~~
	Name:	~~Name:~~Staffan Hultgren	~~Staffan Hultgren~~
	Title:	~~Title:~~Vice President & Deputy CEO and Principal Financial Officer	~~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 future prospects, developments and business strategies. Such statements reflect ~~the~~our 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 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, 2011, and March 31, 2012		3
Condensed Consolidated Income Statements for the three month periods ended June 30, 2011, and June 30, 2012		3
Consolidated Statements of Comprehensive Income for the three month periods ended March 31, 2011 and March 31, 2012		4
Condensed Consolidated Income Statements for the six month periods ended June 30, 2011, and June 30, 2012		4
Condensed Consolidated Balance Sheets as of December 31, 2011 and March 31, 2012		5
Consolidated Statements of Comprehensive Income for the six month periods ended June 30, 2011 and June 30, 2012		5
Consolidated Statements of Changes in Shareholders’ Equity for the three month periods ended March 31, 2011 and March 31, 2012		6
Condensed Consolidated Balance Sheets as of December 31, 2011 and June 30, 2012		6
Condensed Consolidated Statements of Cash Flow for the three month periods ended March 31, 2011, and March 31, 2012		7
Consolidated Statements of Changes in Shareholders’ Equity for the six month periods ended June 30, 2011 and June 30, 2012		7
Notes to Condensed Consolidated Financial Statements		8-9
Condensed Consolidated Statements of Cash Flow for the six month periods ended June 30, 2011, and June 30, 2012		8
OPERATING AND FINANCIAL REVIEW		10-16
Notes to Condensed Consolidated Financial Statements		9-10
OTHER FINANCIAL INFORMATION – RESTRICTED GROUP		17-21
OPERATING AND FINANCIAL REVIEW		11-21
OTHER FINANCIAL INFORMATION – RESTRICTED GROUP		22-26

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Income Statements (unaudited)

	Three month period ended
	March 31, 2011			March 31, 2012
	June 30, 2011			June 30, 2012
	SEK			SEK			$
	(in millions)
Revenues:
Ferry operations		12,~~712~~456			12,~~947~~708			~~294~~389
Drilling		1,~~898~~751			1,~~326~~990			~~200~~286
Shipping		~~842~~660			~~556~~618			8489
Property		~~579~~594			~~595~~619			9089
New Businesses		996			1,102			165
New Businesses, Adactum		1,398			1,487			214
Other		40			51			10
Total revenues		6,~~031~~859			57,~~531~~423			~~834~~1,067
Net valuation on investment properties		50(3	)		10			0
Net gain on sales of assets		—24			1544			26
Total other income		5021			1644			26
Direct operating expenses:
Ferry operations		(1,~~506~~792	)		(12,~~715~~014	)		(~~258~~289	)
Drilling		(~~719~~742	)		(~~644~~853	)		(97123	)
Shipping		(~~676~~519	)		(~~305~~338	)		(4649	)
Property		(~~253~~192	)		(~~243~~196	)		(3728	)
New Businesses		(721	)		(816	)		(123	)
New Businesses, Adactum		(984	)		(1,062	)		(153	)
Other		—(1	)		1(4	)		0(1	)
Total direct operating expenses		(34,~~875~~230	)		(34,~~722~~467	)		(~~561~~643	)
Selling and administrative expenses		(~~846~~806	)		(~~777~~858	)		(~~117~~123	)
Depreciation and amortization		(~~854~~861	)		(~~897~~915	)		(~~135~~131	)
Total operating expenses		(5,~~575~~897	)		(56,~~396~~240	)		(~~813~~897	)
Income from operations		~~506~~983			~~151~~1,227			23176
Financial income and expense, net:
Financial income and expense:
Share of affiliated companies’ results		(116	)		(28	)		01
Dividends received		334			1034			25
Net gain (loss) on securities		197			130			19
Gain (loss) on securities, net		(5	)		(143	)		(21	)
Interest income		~~145~~93			~~138~~92			2113
Interest expense		(~~439~~471	)		(~~572~~586	)		(8684	)
Foreign exchange gains/(losses), net		(16	)		(1116	)		(2	)
Other financial income/(expense), net		(66	)		(34	)		(5	)
Other financial expense, net		(123	)		(67	)		(10	)
Total financial income and expense		(~~145~~472	)		(~~341~~678	)		(5198	)
Income/(loss) before taxes		361			(190	)		(28	)
Income before taxes		511			549			78
Income taxes		(566	)		76(109	)		11(16	)
Net income/(loss)		356			(114	)		(17	)
Net income		445			440			62
Earnings attributable to:
Owners of the Company		359			(118	)		(18	)
Equity holders of the Parent Company		429			440			62
Non-controlling interest		316			40			10
Net Income/(loss)		356			(114	)		(17	)
Net Income		445			440			62

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
	2011			2012			2012
	June 30, 2011			June 30, 2012
	SEK			SEK			$
	(in millions)
Result for the period		356			(114	)		(17	)
Revenues:
Other comprehensive income
Ferry operations		4,168			4,655			669
Fair value gains on available-for-sale financial assets, net of tax		272			252			38
Drilling		3,649			3,316			476
Cash flow hedges, net of tax		391			999			151
Shipping		1,502			1,174			169
Currency translation differences		(952	)		(993	)		(150	)
Property		1,173			1,214			174
Equity hedges, net of tax		59			93			14
New Businesses, Adactum		2,394			2,589			372
Total comprehensive income for the period		126			238			36
Other		4			6			1
Total comprehensive income attributable to:
Total revenues		12,890			12,954			1,861
- owners of the Parent company		132			238			36
Net valuation on investment properties		47			1			0
- Non-controlling interest		(6	)		0			0
Net gain on sales of assets		24			59			8
Total comprehensive income for the period		126			238			36
Total other income		71			60			8
Direct operating expenses:
Ferry operations		(3,298	)		(3,729	)		(536	)
Drilling		(1,461	)		(1,497	)		(215	)
Shipping		(1,195	)		(643	)		(92	)
Property		(445	)		(439	)		(63	)
New Businesses		(1,705	)		(1,878	)		(270	)
Other		(1	)		(3	)		0
Total direct operating expenses		(8,105	)		(8,189	)		(1,176	)
Selling and administrative expenses		(1,652	)		(1,635	)		(235	)
Depreciation and amortization		(1,715	)		(1,812	)		(260	)
Total operating expenses		(11,472	)		(11,636	)		(1,671	)
Income from operations		1,489			1,378			198
Financial income and expense:
Share of affiliated companies’ results		15			6			1
Dividends received		37			44			6
Gain (loss) on securities, net		192			(13	)		(2	)
Interest income		238			230			33
Interest expense		(910	)		(1,158	)		(166	)
Foreign exchange gains, net		0			(27	)		(4	)
Other financial expense, net		(189	)		(101	)		(14	)
Total financial income and expense		(617	)		(1,019	)		(146	)
Income before taxes		872			359			52
Income taxes		(71	)		(33	)		(5	)
Net income		801			326			47
Earnings attributable to:
Equity holders of the Parent Company		782			322			46
Non-controlling interest		19			4			1
Net Income		801			326			47

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, 2011			March 31, 2012
	Six months period ended June 30,
	2011			2012			2012
	SEK			SEK			$
	(in millions)
ASSETS
Result for the period		801			326			47
Noncurrent assets:
Other comprehensive income
Intangible assets		3,049			3,016			455
Fair value gains on available-for-sale financial assets, net of tax		171			75			11
Tangible fixed assets:
Cash flow hedges, net of tax		100			190			27
Vessels		34,185			32,666			4,926
Currency translation differences		(657	)		(610	)		(88	)
Construction in progress		5,290			5,320			802
Equity hedge, net of tax		59			17			2
Equipment		2,303			2,570			388
Total comprehensive income for the period		474			(6	)		(1	)
Buildings and land		939			1,271			192
Total comprehensive income attributable to:
Ports		1,795			1,868			281
- owners of the Parent company		461			(10	)		(2	)
Total tangible fixed assets		44,512			43,695			6,589
- Non-controlling interest		13			4			1
Property		25,753			25,790			3,889
		474			(6	)		(1	)
Financial fixed assets:
Investment in associated companies		1,374			1,429			215
Investment in SPEs		4,548			4,012			605
Marketable securities		3,465			4,211			635
Other assets		4,731			4,881			736
Total financial fixed assets		14,118			14,533			2,191
Total noncurrent assets		87,432			87,034			13,124
Current assets:
Inventories		632			686			103
Trade debtors		3,218			3,109			469
Other receivables		1,611			2,073			313
Prepaid expenses and accrued income		1,448			2,219			336
Short-term investments		2,668			3,000			452
Cash and cash equivalents		1,587			1,360			205
Total current assets		11,164			12,447			1,878
Total assets		98,596			99,481			15,002
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity:
Share Capital		5			5			1
Reserves		(2,366	)		(2,006	)		(302	)
Retained earnings		30,071			32,540			4,906
Net Income		2,476			(114	)		(17	)
Non-controlling interests		211			211			32
Total shareholders’ equity		30,397			30,635			4,620
Noncurrent liabilities:
Deferred income taxes		4,248			4,348			656
Pension liabilities		962			849			128
Other provisions		1,370			744			112
Long-term debt		38,720			39,566			5,966
Debt in SPEs		4,143			3,986			601
Senior notes		6,236			6,149			927
Capitalized lease obligations		1,481			1,469			222
Other noncurrent liabilities		1,802			1,505			227
Total noncurrent liabilities		58,962			58,616			8,839
Current liabilities:
Short-term debt		2,842			3,074			464
Capitalized lease obligations		222			96			14
Trade accounts payable		1,281			1,900			287
Income tax payable		92			10			2
Other current liabilities		2,175			2,263			341
Accrued costs and prepaid income		2,625			2,887			435
Total current liabilities		9,237			10,230			1,543
Total shareholders’ equity and liabilities		98,596			99,481			15,002

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, 2011			June 30, 2012
(SEK in millions)	ShareCapital			Reserves			Retainedearningsincl. NetIncome/(loss)			Total			Non-controllinginterest			TotalEquity
	SEK			SEK			$
Closing balance as of December 31, 2010		5			(1,096	)		30,275			29,184			264			29,448
	(in millions)
Acquisition of subsidiary														(25	)		(25	)
ASSETS
Exchange differences arising on the translation of foreign operations, net of tax					(943	)					(943	)		(9	)		(952	)
Noncurrent assets:
Change in hedging reserve, net of tax
Intangible assets		3,049			3,007			432
- bunker hedge					349						349						349
Tangible fixed assets:
- interest swap hedge					42						42						42
Vessels		34,185			43,069			6,185
Change in fair value reserve, net of tax					272						272						272
Construction in progress		5,290			879			126
Change in net investment hedge, net of tax					59						59						59
Equipment		2,303			2,914			419
Net income/(loss) recognized directly in equity					(221	)					(221	)		(9	)		(230	)
Buildings and land		939			1,377			198
Net income/(loss)								353			353			3			356
Ports		1,795			1,889			271
Total recognized income and expense					(221	)		353			132			(6	)		126
Total tangible fixed assets		44,512			50,128			7,199
Closing balance as of March 31, 2011		5			(1,317	)		30,628			29,316			233			29,549
Investment properties		25,753			25,857			3,713
Closing balance as of December 31, 2011		5			(2,366	)		32,547			30,186			211			30,397
Financial fixed assets:
Exchange differences arising on the translation of foreign operations, net of tax					(987	)					(987	)		(4	)		(991	)
Investment in associated companies		1,374			1,419			204
Change in hedging reserve, net of tax
Investment in SPEs		4,548			4,396			631
- bunker hedge					292						292						292
Marketable securities		3,465			4,390			630
- interest swap hedge					706						706						706
Other non-current assets		4,731			4,976			715
Change in fair value reserve, net of tax					252						252						252
Total financial fixed assets		14,118			15,181			2,180
Change in net investment hedge, net of tax					93						93						97
Total noncurrent assets		87,432			94,173			13,524
Net income/(loss) recognized directly in equity					356						356			(4	)		352
Current assets:
Net income/(loss)								(118	)		(118	)		4			(114	)
Inventories		632			700			101
Total recognized income and expense					356			(118	)		238			0			238
Trade debtors		3,218			3,184			457
Closing balance as of March 31, 2012		5			(2,010	)		32,429			30,424			211			30,635
Other current receivables		1,611			2,189			314
Prepaid expenses and accrued income		1,448			3,086			444
Short-term investments		2,668			2,954			424
Cash and cash equivalents		1,587			2,057			295
Total current assets		11,164			14,170			2,035
Total assets		98,596			108,343			15,559
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity:
Share Capital		5			5			1
Reserves		(2,366	)		(2,702	)		(388	)
Retained earnings		30,071			32,277			4,636
Net Income		2,476			322			46
Non-controlling interests		211			215			31
Total shareholders’ equity		30,397			30,118			4,326
Noncurrent liabilities:
Deferred income taxes		4,248			4,279			613
Pension liabilities		962			808			116
Other provisions		1,370			1,111			160
Long-term debt		38,720			47,593			6,835
Debt in SPEs		4,143			4,116			591
Senior notes		6,236			6,162			885
Capitalized lease obligations		1,481			1,344			193
Other noncurrent liabilities		1,802			1,614			232
Total noncurrent liabilities		58,962			67,027			9,625
Current liabilities:
Short-term debt		2,842			2,780			399
Capitalized lease obligations		222			216			31
Trade accounts payable		1,281			1,691			243
Income tax payable		92			94			13
Other current liabilities		2,175			2,798			402
Accrued costs and prepaid income		2,625			3,619			520
Total current liabilities		9,237			11,198			1,608
Total shareholders’ equity and liabilities		98,596			108,343			15,559

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, 2011			March 31, 2012
(SEK in millions)	ShareCapital			Reserves			Retainedearningsincl. NetIncome/(loss)			Total			Non-controllinginterest			TotalEquity
	SEK			SEK			$
Closing balance as of December 31, 2010		5			(1,096	)		30,275			29,184			264			29,448
	(in millions)
Acquisition of subsidiary														(25	)		(25	)
Net cash flows from operating activities:
Subsidiary’s distribution														(54	)		(54	)
Net income/(loss)		356			(114	)		(17	)
Exchange differences arising on the translation of foreign operations, net of tax					(751	)					(751	)		(6	)		(757	)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Change in hedging reserve, net of tax
Depreciation and amortization		854			897			135
– bunker hedge					189						189						189
Net valuation of investment properties		(50	)		(1	)		0
– interest swap hedge					(89	)					(89	)					(89	)
Gain on sale of assets		—			(15	)		(2	)
Change in fair value reserve, net of tax					171						171						171
Gain on securities, net		(197	)		(130	)		(19	)
Change in net investment hedge, net of tax					59						59						59
Unrealized foreign exchange (gains) losses		90			(104	)		(16	)
Net income recognized directly in equity					(421	)					(421	)		(6	)		(427	)
Deferred income taxes		(23	)		(40	)		(6	)
Net income								782			782			19			801
Provision for pensions		50			(122	)		(18	)
Total recognized income and expense					(421	)		782			361			13			374
Net cash flows from trading securities		(18	)		(47	)		(7	)
Dividend								(240	)		(240	)					(240	)
Share of affiliated companies results		1			2			0
Transfer to charity trust								(14	)		(14	)					(14	)
Other non-cash items		160			161			24
Closing balance as of June 30, 2011		5			(1,517	)		30,803			29,291			198			29,489
Receivables		(262	)		(202	)		(30	)
Closing balance as of December 31, 2011		5			(2,366	)		32,547			30,186			211			30,397
Prepaid expenses and accrued income		(153	)		(841	)		(127	)
Exchange differences arising on the translation of foreign operations, net of tax					(618	)					(618	)		8			(610	)
Inventories		(69	)		(52	)		(8	)
Change in hedging reserve, net of tax
Trade accounts payable		75			591			89
– bunker hedge					(141	)					(141	)					(141	)
Accrued costs and prepaid income		181			196			30
– interest swap hedge					331						331						331
Income tax payable		(10	)		34			5
Change in fair value reserve, net of tax					75						75						75
Other current liabilities		(164	)		(587	)		(89	)
Change in net investment hedge, net of tax					17						17						17
Net cash provided by operating activities		821			(374	)		(56	)
Net income/(loss) recognized directly in equity					(336	)					(336	)		8			(328	)
Net cash flows from investing activities:
Net income/(loss)								326			326			(4	)		322
Purchase of intangible assets		(11	)		(21	)		(3	)
Total recognized income and expense					(336	)		326			(10	)		4			(6	)
Cash proceeds from sale of property, vessels and equipment		88			141			21
Dividend								(260	)		(260	)					(260	)
Capital expenditure on property, vessels and equipment		(1,261	)		(1,381	)		(208	)
Transfer to charity trust								(14	)		(14	)					(14	)
Purchase of subsidiaries, net of cash acquired		(143	)		—			—
Closing balance as of June 30, 2012		5			(2,702	)		32,599			29,903			215			30,118
Investment in affiliated companies		(4	)		(74	)		(11	)
Proceeds from sale of securities		1,584			1,170			176
Purchase of securities		(985	)		(1,205	)		(182	)
Other investing activities		(124	)		(6	)		(1	)
Net cash used in investing activities		(856	)		(1,376	)		(208	)
Net cash flows from financing activities:
Proceeds from issuance of debt		5			787			119
Principal payments on debt		(414	)		(329	)		(50	)
Net change in borrowings on line-of-credit agreements		458			1,557			235
Principal payments on capital lease obligations		(8	)		(107	)		(16	)
Net change in restricted cash accounts		620			(392	)		(59	)
Other financing activities		(26	)		1			0
Net cash provided by financing activities		635			1,517			229
Effect of exchange rate changes on cash and cash equivalents		(38	)		6			1
Net change in cash and cash equivalents		562			(227	)		(34	)
Cash and cash equivalents at beginning of period		1,665			1,587			239
Cash and cash equivalents at end of period		2,227			1,360			205

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, 2011			June 30, 2012
	SEK			SEK			$
	(in millions)
*Net cash flows from operating activities:*
Net income		801			326			47
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,715			1,812			260
Net valuation of investment properties		(47	)		(1	)		0
Gain on sale assets		(24	)		(59	)		(8	)
(Gain)/loss on securities, net		(192	)		13			2
Unrealized foreign exchange (gains) losses		304			(327	)		(47	)
Deferred income taxes		(33	)		(90	)		(13	)
Provision for pensions		(201	)		(178	)		(26	)
Net cash flows from trading securities		45			(66	)		(9	)
Share of affiliated companies results		(15	)		(6	)		(1	)
Dividend from affiliated companies		10			20			3
Other non-cash items		154			188			26
Receivables		(1,019	)		(894	)		(128	)
Prepaid expenses and accrued income		213			(869	)		(125	)
Inventories		(2	)		(68	)		(10	)
Trade accounts payable		(134	)		411			59
Accrued costs and prepaid income		605			805			116
Income tax payable		37			6			1
Other current liabilities		(56	)		(425	)		(61	)

Net cash provided by operating activities		2,161			598			86


*Net cash flows from investing activities:*
Purchase of intangible assets		(20	)		(37	)		(5	)
Cash proceeds from sale of property, vessels and equipment		167			274			39
Capital expenditure on property, vessels and equipment		(6,857	)		(7,715	)		(1,109	)
Purchase of subsidiaries, net of cash acquired		(143	)		—			—
Investment in affiliated companies		(4	)		(75	)		(11	)
Proceeds from sale of securities		3,588			1,632			234
Purchase of securities		(1,483	)		(2,164	)		(310	)
Other investing activities		(206	)		(117	)		(17	)

Net cash used in investing activities		(4,958	)		(8,202	)		(1,179	)


*Net cash flows from financing activities:*
Proceeds from issuance of debt		121			6,704			963
Principal payments on debt		(1,543	)		(822	)		(118	)
Net change in borrowings on line-of-credit agreements		3,980			2,896			415
Principal payments on capital lease obligations		(44	)		(148	)		(21	)
Net change in restricted cash accounts		627			(251	)		(36	)
Dividend paid		(240	)		(260	)		(37	)
Other financing activities		(97	)		(37	)		(5	)

Net cash provided by financing activities		2,804			8,082			1,161

Effect of exchange rate changes on cash and cash equivalents		13			(8	)		(1	)

Net change in cash and cash equivalents		20			470			67
Cash and cash equivalents at beginning of period		1,665			1,587			228

Cash and cash equivalents at end of period		1,685			2,057			295

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, 2011, which have been prepared in accordance with IFRS.

The interim financial information included in the condensed consolidated financial statements is unaudited, but reflects all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Interim results for the ~~three~~six months ended ~~March~~June 3130, 2012 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 30, 2012, of $1 = SEK 6.~~6314~~9632.

Note 2 Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended December 31, 2011, 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 periodended ~~March~~June 31,						Six month periodended June 30,
	2011			2012			2011			2012
Income from operations:
Ferry operations		~~(393~~117	)		~~(322~~117	)		(231	)		(205	)
Drilling		~~625~~471			~~184~~643			1,096			827
Shipping: Roll-on/Roll-off vessels		2936			~~(30~~5	)		66			(25	)
Crude oil tankers		(6864	)		(2936	)		(133	)		(64	)
LNG		—			85
LNG1)		3			60			3			144
Other shipping		602			—(2	)		62			(2	)
Total shipping		21(23	)		2627			(2	)		53
Property:		~~278~~356			~~304~~400			634			704
Net valuations on investment properties		50(3	)		10			47			1
Total property Total property		328			305
Total property		353			400			681			705
New Businesses, Adactum		10140			20139			150			159
Other		(8575	)		(6299	)		(205	)		(161	)
Total		~~506~~983			~~151~~1,227			1,489			1,378
(SEK in millions)	Three month ~~periods~~periodended ~~ended~~June ~~March 31~~30,						Six month periodended June 30,
	2011			2012			2011			2012
Depreciation and amortization:
Ferry operations		~~311~~307			307			618			614
Drilling		~~429~~419			~~371~~380			848			751
Shipping: Roll-on/Roll-off vessels		3652			6671			88			137
Crude oil tankers		1918			3029			37			59
LNG		—			65
LNG1)		6			67			6			132
Other shipping		2			32			4			5
Total shipping		5778			~~164~~168			135			333
Property		1			1			2			2
New Businesses, Adactum		5251			5155			103			106
Other		45			3			9			6
Total		~~854~~861			~~897~~915			1,715			1,812
(SEK in millions)	Three month periodsended March 31,
	2011			2012
Capital expenditures:
Ferry operations		690			213
Drilling		155			270
Shipping: Roll-on/Roll-off vessels		144			7
Crude oil tankers		0			49
LNG		—			14
Other shipping		3			4
Total shipping		147			74
Property		185			537
New Businesses, Adactum		83			287
Other		1			—
Total		1,261			1,381


(SEK in millions)	Six month period ended June 30,
	2011		2012
Capital expenditures:
Ferry operations		1,103		939
Drilling		401		4,727
Shipping: Roll-on/Roll-off vessels		394		625
Crude oil tankers		4,381		63
LNG¹⁾		—		32
Other shipping		16		7

Total shipping		4,791		727
Property		411		841
New Businesses, Adactum		150		478
Other		1		3


Total		6,857		7,715

1)	As from January 1, 2012, LNG is a new business area within shipping in the Stena AB Group. The figures for 2011 have been restated.

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, LNG carriers and drilling rigs, managing tankers, sales of vessels, income from New Businesses 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 generally 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 2012

InAs from January 1, 2012, aLNG ~~commercial~~is ~~property, with~~ a ~~total~~new ~~size~~business ofarea ~~approximately~~within ~~5,000~~shipping ~~square meters, was acquired~~ in ~~London,~~the ~~United~~Stena ~~Kingdom~~AB ~~for a total investment of GBP 22 million~~Group.

In ~~February~~January 2012, we ~~sold~~acquired ~~Stena~~a ~~Navigator~~commercial ~~and~~property, inwith ~~March~~a ~~2012~~total size of approximately 5,000 wesquare ~~sold~~meters, ~~Stena Caribbean~~in London, ~~with~~United Kingdom for a total ~~gain~~investment of ~~SEK~~GBP 1622 million.

In ~~March~~February 2012, we ~~signed~~sold ~~a time charter contract with LNG Shipping S.p.A. The time charter is for our LNG carrier,~~ Stena ~~Crystal~~Navigator ~~Sky~~ and ~~the~~in ~~contract~~March ~~period~~2012, ~~is 40~~we ~~months.~~sold ~~LNG Shipping S.p.A~~Stena Caribbean, isfor ~~fully~~a ~~owned~~total bygain ~~ENI,~~of anSEK ~~Italian~~16 ~~Energy Group~~million.

In March 2012, we signed a time charter contract with LNG Shipping S.p.A. The time charter is for our LNG carrier, Stena Crystal Sky and the contract period is 40 months. LNG Shipping S.p.A, is fully owned by ENI, an Italian energy group.

New contracts have been successfully agreed for the drilling units Stena Clyde and Stena Spey with firm duration until the first quarter of 2013 and the first quarter of 2015, respectively.

AsThe ~~from~~fourth ~~January 1~~DrillMAX vessel, ~~2012~~the enhanced ice-classed ultra-deepwater drillship Stena IceMAX, ~~LNG~~was isdelivered in April 2012. In December 2011, a ~~new~~five ~~business~~year ~~area within~~contract ~~shipping~~was insigned with Shell for drilling services to be provided by Stena ABIceMAX ~~Group.~~with operation commenced June 15, 2012.

~~SUBSEQUENT~~In ~~EVENTS~~April 2012, we acquired four modern RoPax vessels, Stena Mersey, Stena Lagan, Norman Voyager and Watling Street. The first two vessels were already on bare-boat charter to Stena Line and the latter two vessels were on charter to LD Lines and Scandlines A.G., respectively.

~~The fourth DrillMAX vessel, the enhanced ice-classed ultra-deepwater drillship Stena IceMAX, was delivered in April 2012.~~ In ~~December~~May ~~2011~~2012, awe ~~five~~sold ~~year contract was signed with Shell for drilling services to be provided by~~ Stena ~~IceMAX~~Caledonia ~~with operational commencement scheduled~~ for ~~the~~a ~~second~~gain ~~quarter~~ of ~~2012~~SEK 15 million.

In ~~April 2012~~May, we ~~acquired~~signed ~~four~~a ~~modern~~purchase ~~RoPax~~contract ~~vessels,~~with ~~Stena~~Scandlines ~~Mersey,~~where Stena ~~Lagan,~~acquired ~~Norman~~five ~~Voyager~~routes ~~and~~in ~~Watling~~the ~~Street~~Baltic Sea. ~~The~~Two ~~first~~of ~~two~~the ~~vessels~~routes were already onoperated ~~bare-boat~~in ~~charter~~a tocooperation ~~Stena~~between ~~Line~~Scandlines and ~~the~~Stena. ~~latter~~Final ~~two~~closing ~~vessels~~is ~~are~~planned onin ~~charter to LD Lines and Scandlines A~~October.~~G.,~~ ~~respectively.~~

InFour ~~May~~new-building ~~2012,~~contracts weon ~~sold~~Product ~~Stena~~tankers ~~Caledonia~~were signed with Guangzhou Shipyard International in June. Contract price is USD 35 million per vessel.

10In June, Stena acquired 42% in a freight route over the Black Sea on the route Istanbul-Illtjivsk.

Stena AB and Consolidated Subsidiaries

Currency effects

Our revenues and expenses, 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 ~~three~~ six month period ended ~~March~~June 3130, 2012, approximately 30% of our total revenues were generated in USD, approximately 16 % were generated in EUR, approximately 11% were generated in GBP and approximately 29% were generated in SEK.

In the ~~three~~six month period ended ~~March~~June 3130, 2012, approximately 26% of our total expenses were incurred in USD, approximately 12% were incurred in EUR, 14% were incurred in GBP and approximately 34% were incurred in SEK. The reported gross revenues and expenses were influenced by changes in the currency rates. The exchange rates as used for consolidation purposes are as follows:

Average rates:	Jan-~~Mar2011~~June		Jan-~~Mar2012~~June		Change
US $		6.4830		6.7495		4	%
	2011		2012
British pound		10.3899		10.6057		2	%
US $		6.38		6.84		7	%
Euro		8.8685		8.8532		0	%
British pound		10.30		10.79		5	%
Closing rates:	As ofDec 31, 2011		As ofMar 31, 2012		Change
Euro		8.94		8.88		—
US $		6.8748		6.6199		(3	)%
Closing rates:	As of		As of		Change
British pound		10.6803		10.5811		(1	)%
	Dec 31,2011		June 30,2012
Euro		8.9177		8.8273		(2	)%
US $		6.8748		6.9131		1	%
British pound		10.6803		10.8428		2	%
Euro		8.9177		8.7572		(2	)%

1112

Stena AB and Consolidated Subsidiaries

THREE MONTHS ENDED ~~MARCH~~JUNE 3130, 2012, COMPARED TO THREE MONTHS ENDED

~~MARCH~~JUNE 3130, 2011

Revenues

Total revenues ~~decreased~~increased SEK ~~500~~564 million, or 8%, to SEK 57,~~531~~423 million in the three months ended ~~March~~June 3130, 2012, from SEK 6,~~031~~859 million in the three months ended ~~March~~June 3130, 2011, as a result of ~~decreased revenues in the drilling and shipping segments, offset by~~ increased revenues in all ~~other~~ segments except ~~and~~the toshipping asegment, ~~lesser~~together ~~extent~~with the strengthening of the U.S. dollar and 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 ~~235~~252 million, or 1410%, to SEK 1 2,~~947~~708 million in the three months ended ~~March~~June 3130, 2012, from SEK 12,~~712~~456 million in the three months ended ~~March~~June 3130, 2011, mainly as an effect of higher freight haulage revenues ~~and onboard sales~~ as a consequence of increased freight ~~and passenger~~ volumes, particularly generated from the new routes in the Irish Sea acquired in 2011.

Drilling. Drilling revenues consist of charter hires for our drilling rigs. Revenues from drilling operations ~~decreased~~increased SEK ~~572~~239 million, or 3014%, to SEK 1,~~326~~990 million in the three months ended ~~March~~June 3130, 2012, from SEK 1,~~898~~751 million in the three months ended ~~March~~June 3130, 2011, mainly ~~due~~reflecting to the ~~rigs~~new ~~Stena~~contract ~~Clyde~~for ~~and~~ Stena DrillMAX ~~Spey,~~Ice ~~which~~that ~~both~~started ~~were~~to ~~unutilized~~operate ~~the~~June 15, ~~first two months of~~ 2012, together with the ~~reduction~~strengthening of ~~revenues~~the ~~reflecting~~U.S. dollar against the SEK, offset by the sale of the rig Stena Tay in the fourth quarter of 2011, ~~offset~~together bywith ~~the~~contracts ~~strengthening~~at oflower ~~the~~day ~~U.S.~~rates for ~~dollar~~Stena ~~against~~DrillMAX ~~the~~and ~~SEK~~Stena Forth. In local currency, revenues ~~decreased~~increased 333% in the three months ended ~~March~~June 3130, 2012, compared to the same period last year 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 ~~286~~42 million, or 346%, to SEK ~~556~~618 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~842~~660 million in the three months ended ~~March~~ June 3130, 2011.

Revenues from crude oil tankers decreased SEK ~~401~~220 million, or 6648%, to SEK ~~209~~239 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~610~~459 million in the three months ended ~~March~~June 3130, 2011, mainly ~~because our MR vessels~~ as from April 2011 are operating in the joint venture Stena Weco A/S 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 have also been reduced as an effect of a reduced fleet, offset by the strengthening of the U.S. dollar against the SEK.

As from January 1, 2012, LNG is reported as a new business area within shipping in the Stena AB Group. During 2011, the LNG business area was reported within the crude oil tanker segment. Operating Revenues from LNG operation ~~amounted~~increased to SEK ~~183~~173 million in the three months ended ~~March~~June 3130, 2012, from SEK 10 in the three months ended June 30, 2011, including the negative impact of Stena Blue Sky being out of operation for 14 days in April 2012 because of a broken mooring, waiting time in-between charters for Stena Crystal Sky, resulting in 10 days loss of hire in May 2012, and a propulsion failure for Stena Crystal Sky resulting in 14 days off hire in June 2012. The first of our LNG carriers was put into operation in May 2011, and the other two were both put into operation in July 2011.

Revenues from chartering out Roll-on/Roll-off vessels decreased SEK 710 million, or 67%, in the three months ended ~~March~~June 3130, 2012, to SEK ~~112~~134 million from SEK ~~119~~144 million in the three months ended ~~March~~June 3130, 2011, mainly due to a weakening market with renegotiated charter contracts at lower day rates, ~~offset by revenues generated by Highlanders from February 2011 and Stena Feronia from April 2011, respectively.~~

Revenues from Other Shipping ~~decreased~~increased SEK 6115 million, or 54 32%, to SEK 5262 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~113~~47 million in the three months ended ~~March~~June 3130, 2011, mainly ~~reflecting~~due to the ~~receipt~~set up of ~~USD~~a 10new ~~million~~training ~~(SEK~~division ~~64.8~~within ~~million)~~Northern ~~for~~Marine aManning ~~patent~~Services ~~infringement~~ in the ~~first~~fourth quarter of 2011.

Property. Property revenues consist of rents for properties owned and management fees for properties managed by the Company. Revenues from property operations increased SEK 1625 million, or 34%, to SEK ~~595~~619 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~579~~594 million in the three months ended ~~March~~June 3130, 2011, mainly due to higher ~~rental~~ rental income as an effect of decreased vacancy rates for ~~the~~our commercial properties in Sweden together with rental income for two new commercial properties in London, purchased in July 2011 and January 2012, respectively, offset by increased vacancy ~~rates~~ rates in our property portfolio in the Netherlands.

New Businesses Adactum. Revenues consist of revenues from Adactum’s subsidiaries. Revenues from Adactum increased SEK ~~106~~89 million, or 116%, to SEK 1,~~102~~487 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~996~~1,398 million in the three months ended ~~March~~June 3130, 2011, mainly due to ~~increased~~ increased revenues from Blomsterlandet, which has increased its market share and also increased its number of shops ~~together with favorable weather conditions in the early spring in Sweden~~. Revenues also increased as an effect of Ballingslöv’s acquisition of the Swedish company Macro, a manufacturer of shower systems, in the fourth quarter of 2011. Of the total revenues in the three months ended June 30, 2012, SEK 665 million related to Ballingslöv, SEK 505 million related to Blomsterlandet, SEK 291 million related to Envac and

1213

Stena AB and Consolidated Subsidiaries

~~the total revenues in the three months ended March 31, 2012,~~ SEK ~~566~~26 million related to ~~Ballingslöv, SEK 246 million related to Blomsterlandet, SEK 257 million related to Envac and SEK 33 million related to~~ Stena Renewable, as compared to SEK ~~526~~604 million related to Ballingslöv, SEK ~~201~~498 million related to Blomsterlandet, SEK ~~233~~274 million related to Envac and SEK 3622 million related to Stena Renewable in the three months ended ~~March~~June 3130, 2011.

Other income

Net valuation on investment property. As a result of revaluation to fair value according to IAS 40 “Investment properties”, the Company ~~had~~recorded no net ~~gains~~change ofin ~~SEK~~valuation ~~1 million~~ for the three months ended ~~March~~June 3130, 2012, as compared to ~~gains~~losses of SEK 503 million for the three months ended ~~March~~June 3130, 2011~~, mainly due to stagnation 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, 2012 net gains of SEK 15 million were recorded on the sale of Stena ~~Navigator and Stena Caribbean~~Caledonia. In the three months ended ~~March~~June 3130, 2011, nogains ~~sales~~of SEK 24 million were recorded on the sale of the vessels ~~were~~Stena ~~made~~Leader, Stena Pioneer and Stena Seafarer.

Net Gain on Sale of Properties. In the three months ended ~~March~~June 3130, 2012, ~~and~~net ~~2011~~gains of SEK 29 million were recorded on sales of investment properties. In the three months ended June 30, ~~respectively~~2011, no sales of properties were ~~sold~~made.

Direct operating expenses

Total direct operating expenses ~~decreased~~increased SEK ~~153~~237 million, or 46%, to SEK 34,~~722~~467 million in the three months ended ~~March~~June 3130, 2012, from SEK 34,~~875~~230 million in the three months ended ~~March~~ June 3130, 2011, ~~mainly~~ as a result of ~~decreased~~increased operating expenses in all segments except for ~~the~~shipping ~~ferry~~ operations ~~and new businesses~~, ~~Adactum~~together ~~segments,~~with ~~offset by~~ the strengthening of the U.S. dollar and GBP against the SEK.

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 ~~209~~222 million, or 1412%, to SEK 12,~~715~~014 million in the three months ended ~~March~~June 3130, 2012, from SEK 1,~~506~~792 million in the three months ended ~~March~~June 3130, 2011, mainly due to higher expenses for bunker fuel together with increased product and operating costs generated from new routes in the Irish Sea. Direct operating expenses for ferry operations for the three months ended ~~March~~June 3130, 2012, ~~and~~were ~~the~~74% ~~three months ended March 31~~of revenues, ~~2011~~as ~~were~~compared ~~each 88~~to 73% offor ~~revenues~~the ~~for~~three ~~their~~months ~~respective~~ended ~~applicable~~June 30, ~~period~~2011.

Drilling. Direct operating expenses for drilling consist primarily of personnel costs, fuel costs, insurance, maintenance and catering costs. Direct operating expenses for drilling operations ~~decreased~~increased SEK 75111 million, or 1015%, to SEK ~~644~~ 853 million in the three months ended ~~March~~ June 3130, 2012, from SEK ~~719~~ 742 million in the three months ended ~~March~~June 3130, 2011. The ~~decrease~~increase mainly reflects that the ~~rigs~~rig Stena ~~Clyde~~DrillMAX ~~and~~Ice ~~Stena~~started ~~Spey,~~to ~~which~~operate ~~both~~15 June ~~were unutilized for the first two months of~~ 2012, ~~together~~offset ~~with~~by the reduction of operating ~~expenses~~ expenses reflecting the sale of the rig Stena Tay in the end of 2011,. ~~offset~~Operating byexpenses were also increased as a result of the strengthening of the U.S. dollar against the SEK. Direct operating expenses from drilling operations for the three months ended ~~March~~June 3130, 2012, were 4943% of drilling revenues, as compared to 3842% for the three months ended ~~March~~June 3130, 2011.

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 decreased SEK ~~371~~181 million, or 5535%, in the three months ended ~~March~~June 3130, 2012, to SEK ~~305~~338 million from SEK ~~676~~519 million in the three months ended ~~March~~ June 3130, 2011.

Direct operating expenses associated with crude oil tankers decreased SEK ~~417~~259 million, or 67 55%, to SEK ~~207~~211 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~624~~470 million in the three months ended ~~March~~June 3130, 2011, ~~because~~reflecting our MR vessels, as from April 2011,were operating in the joint venture Stena Weco A/S, in which the operating results are reported as net revenue. The revenues and operating expenses of these vessels, were previously reported gross. Operating expenses were also reduced as a ~~result of the~~ decreased number of vessels operated, offset by the strengthening of the U.S. dollar against the SEK. Direct operating expenses for crude oil operations for the three months ended ~~March~~June 3130, 2012, were 9988% of revenues, as compared to ~~102~~103% for the three months ended ~~March~~June 3130, 2011. 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.

During 2011 the LNG business area was reported within the crude oil tanker segment. Operating expenses from LNG operations ~~amounted~~increased SEK 52 million, to SEK 2852 million in the three months ended June 30, ~~March~~2012, from SEK 0 million in the three months ended June 3130, 2011. The expenses include costs for the broken mooring on Stena Blue Sky in April 2012 and propulsion failure on Stena Crystal Sky in June 2012. Direct operating expenses from ~~the~~ LNG operations for the three months ended ~~March~~June 3130, 2012, were 1528% of LNG revenues. The first of our LNG carriers was put into operation in May 2011, with the two remaining carriers put into operation in July 2011.

1314

Stena AB and Consolidated Subsidiaries

Direct operating expenses with respect to Roll-on/Roll-off vessels increased by SEK 2216 million, or 5433%, to SEK 6364 million in the three months ended ~~March~~June 3130, 2012, from SEK 4148 million in the three months ended ~~March~~June 3130, 2011, mainly due to increased costs of new vessels operated. Direct operating expenses ~~for~~ for Roll-on/Roll-off vessels for the three months ended ~~March~~June 3130, 2012, were 5648% of revenues, as compared to 3433% for the three months ended ~~March~~June 3130, 2011.

Direct operating expenses with respect to Other Shipping ~~decreased~~increased SEK 410 million or 361000 %, to SEK 711 million in the three months ended ~~March~~June 3130, 2012 from SEK 111 million in the three months ended ~~March~~June 3130, 2011, mainly relating to the expansion of the new Training Division within Northern Marine Manning Services in the fourth quarter of 2011. Direct operating expenses for Other Shipping for the three months ended ~~March~~ June 3130, 2012 were 1318% of revenues, as compared to 102% for the three months ended ~~March~~June 3130, 2011.

Property. Property expenses consist primarily of maintenance, heating and personnel costs. Direct operating expenses for property operations ~~decreased~~increased SEK 104 million, or 42%, to SEK ~~243~~196 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~253~~ 192 million in the three months ended ~~March~~June 3130, 2011, mainly due to ~~reduced operating expenses as a consequence of lower cost for heating due to a warmer spring in 2012, offset by operating expenses for~~ the two new commercial properties in London ~~and by increased vacancy rates in our property portfolio in the Netherlands~~. Direct operating expenses for property operations for the three months ended ~~March~~June 3130, 2012 were 4132% of property revenues, same as ~~compared to 44%~~ for the three months ended ~~March~~June 3130, 2011.

New Businesses Adactum. Direct operating expenses for Adactum consist of expenses from Adactum’s subsidiaries. Direct operating expenses for Adactum operations increased SEK 9578 million, or 138%, to SEK ~~816~~1,062 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~721~~984 million in three months ended ~~March~~June 3130, 2011, mainly ~~due~~as toan ~~increased~~effect ~~cost~~of ~~for~~Ballingslöv’s ~~goods~~acquisition ~~sold~~of inthe ~~Blomsterlandet,~~Swedish ~~which~~company ~~has~~Macro, ~~increased~~a ~~its~~manufacturer ~~market~~of ~~share and~~shower ~~also~~systems, ~~increased~~in ~~its~~the ~~number~~fourth quarter of ~~shops~~2011. Operating expenses also increased asregarding ancost ~~effect~~for ofgoods sold ~~Ballingslöv’s~~in ~~acquisition~~Blomsterlandet, ofwhich ~~the~~has ~~Swedish~~increased ~~company~~its ~~Macro,~~market ashare ~~manufacturer~~and ofalso ~~shower~~increased ~~systems,~~its innumber ~~the fourth quarter~~ of ~~2011~~shops. Of the total operating expenses SEK ~~371~~436 million related to Ballingslöv, SEK ~~244~~405 million related to Blomsterlandet, SEK ~~192~~ 216 million related to Envac and SEK 65 million related to Stena Renewable in the three months ended ~~March~~June 3130, 2012, as compared to SEK ~~339~~386 million related to Ballingslöv, SEK ~~208~~392 million related to Blomsterlandet, SEK ~~168~~ 200 million related to Envac and SEK 46 million related to Stena Renewable in the three months ended ~~March~~June 3130, 2011. Direct operating expenses for Adactum operations for the three months ended ~~March~~June 3130, 2012, were 7471% of revenues, as compared to 7270% for the three months ended ~~March~~June 3130, 2011.

Selling and administrative expenses

Selling and administrative expenses ~~decreased~~increased SEK 6952 million, or 86%, to SEK ~~777~~858 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~846~~806 million in the three months ended ~~March~~June 3130, 2011, mainly due to ~~decreased~~increased ~~pension~~personnel costs for more people employed and external bought services. Total selling and administrative expenses in the three months ended ~~March~~ June 3130, 2012, were 1412% of total revenues, same as for the three months ended ~~March~~June 3130, 2011.

Depreciation and amortization

Depreciation and amortization charges increased SEK 4354 million, or 56%, to SEK ~~897~~915 million in the three months ended ~~March~~June 3130, 2012, from SEK ~~854~~861 million in the three months ended ~~March~~June 3130, 2011, mainly as a result of increased depreciation charges of new vessels delivered, offset by reduced depreciation charges for the drilling segment as an effect of the sale of the drilling rig Stena Tay in the fourth quarter of 2011. The strengthening 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 increase in depreciation and amortization charges.

Financial income and expense

Financial income and expense decreased by SEK (~~196~~206) million to SEK (~~341~~678) million in the three months ended ~~March~~June 3130, 2012, from SEK (~~145~~472) million in the three months ended ~~March~~June 3130, 2011.

Share of affiliated companies’ results in the three months ended ~~March~~June 3130, 2012, refers to the Company’s portion of the results of Midsona AB (publ), Gunnebo AB (publ), MPP MediaTec Group AB and Silurian Hallwood Plc. As of ~~March~~June 3130, 2012, the Company’s interest in the capital of Midsona was 23.01%, its interest in the capital of Gunnebo was 2526.91%, its interest in the capital of MediaTec was 42.78% and its interest in the capital of Silurian Hallwood was 2029%. As of ~~March~~June 3130, 2011, the Company’s interest in the capital of Midsona was 23.01%, its interest in the capital of Gunnebo was 2526.91% and its interest in the capital of MediaTec was 42.78%.

Net gain (loss) on securities in the three months ended ~~March~~June 3130, 2012, was SEK ~~130~~(143) million, of which SEK ~~(37)~~8 million related to net realized ~~losses~~gains on marketable securities and equity securities and investments in Special Purpose Entities (“SPEs”), SEK ~~146~~(178) million related to net unrealized ~~gains~~losses on marketable securities and SEK 2126 million related to the termination of the financial lease of Stena Carron. Net gain (loss) on securities in the three months ended June 30, 2011 was SEK (5) million, of which SEK 39 million related to net realized gains on marketable securities and equity securities and investments in SPEs, SEK (65) million related to net unrealized gains on marketable securities and SEK 21 million related to the termination of the financial lease of Stena Carron.

1415

Stena AB and Consolidated Subsidiaries

Interest income decreased by SEK 1 million to SEK 92 million in the three months ended ~~March~~June 3130, ~~2011~~2012 ~~was~~from SEK ~~197~~93 million, ofin ~~which~~the ~~SEK~~three 55months ended June ~~million~~30, ~~related~~2011, due to ~~net~~increased ~~realized~~interest ~~gains~~income onmainly ~~marketable~~from ~~securities~~interest ~~and~~in ~~equity~~fixed ~~securities~~interest ~~and~~instruments offset by decreased interest income related to investments in SPEs. Interest income related to investments in SPEs, included in total interest income decreased SEK ~~121~~ 17 million ~~related~~ to ~~net~~SEK ~~unrealized~~33 million ~~gains~~in onthe ~~marketable~~three ~~securities~~months ~~and~~ended June 30, 2012, from SEK 2150 million ~~related~~in to the ~~termination~~three ofmonths ended June 30, 2011 due to the ~~financial~~CDO ~~lease~~2002 ofinvestment ~~Stena~~being ~~Carron~~unwound during 2011.

Interest ~~income~~expense ~~decreased~~increased by SEK 7 (115) million to SEK ~~138~~(586) million in the three months ended ~~March~~June 3130, 2012 from SEK ~~145~~(471) million in the three months ended ~~March~~June 3130, 2011, ~~due~~reflecting ~~to decreased~~higher ~~interest~~debt ~~from investment securities~~outstanding. Interest ~~income~~expense ~~related~~for to investments in SPEs, ~~included~~ in ~~total~~the three ~~interest~~months ~~income~~ended June 30, 2012, decreased SEK 223 million to SEK 57(16) million ~~in the three months ended March 31, 2012,~~ from SEK 79 (19) million in the three months ended ~~March~~June 3130, 2011 ~~due to the CDO 2002 investment being unwound during 2011~~.

~~Interest~~During ~~expense~~the ~~increased~~three bymonths ~~SEK~~ended ~~(133)~~June ~~million~~30, to2012, ~~SEK (572) million in~~ the ~~three~~Company ~~months~~had ~~ended~~foreign ~~March 31~~exchange losses, ~~2012~~net ~~from~~of SEK (~~439~~16) million. inDuring the three months ended ~~March~~June 3130, 2011, ~~reflecting higher debt outstanding and increased interest expenses in SPEs. Interest expense for investments in SPEs in~~ the ~~three~~Company ~~months~~had ~~ended~~foreign ~~March 31~~exchange losses, ~~2012,~~net ~~increased~~of SEK ~~(9) million~~ ~~to SEK~~ (1516) million ~~from SEK (6) million in the three months ended March 31, 2011~~.

~~During~~Other financial income/(expense), net of SEK (67) million for the three months ended ~~March~~June 3130, 2012, includes above all SEK (67) million related to amortization of the ~~Company~~deferred ~~had~~financing ~~foreign~~charges ~~exchange~~for ~~losses~~senior notes, ~~net~~revolving credit facilities, bank loans, capital lease obligations and investments in SPEs and SEK 0 million related to bunker hedges. Other financial income (expense) of SEK (11123) million. ~~During~~for the three months ended ~~March~~June 3130, 2011, includes SEK (66) million related to amortization of the ~~Company~~deferred ~~had~~financing ~~foreign~~charges ~~exchange~~for ~~gains~~senior notes, revolving ~~net~~credit offacilities, ~~SEK~~bank 16loans, capital lease obligations and investments in SPEs and SEK (57) million related to bunker hedges.

Other financial income/(expense), net of SEK (34) million for the three months ended March 31, 2012, includes above all SEK (45) 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 18 million related to bunker hedges. Other financial income (expense) of SEK (66) million for the three months ended March 31, 2011 includes SEK (33) 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 (21) million related to bunker hedges.

Income taxes

Income taxes for the three months ended ~~March~~June 3130, 2012, were SEK 76(109) million, representing an effective tax rate of 20%, consisting of current taxes of SEK 36(159) million and deferred taxes of SEK 4050 million. Income taxes for the three months ended ~~March~~June 3130, 2011, were SEK (566) million representing an effective tax rate of 13%, consisting of current taxes of SEK (2876) million and deferred taxes of SEK 2310 million. The provision for taxes is based upon the applicable tax rates in the various jurisdictions where revenues are generated.

1516

Stena AB and Consolidated Subsidiaries

SIX MONTHS ENDED JUNE 30, 2012, COMPARED TO SIX MONTHS ENDED

JUNE 30, 2011

Revenues

Total revenues increased SEK 64 million to SEK 12,954 million in the six months ended June 30, 2012 from SEK 12,890 million in the six months ended June 30, 2011, as a result of increased revenues in all segments except the drilling and shipping segments and to a lesser extent the strengthening of the U.S. dollar and 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 487 million, or 12%, to SEK 4,655 million in the six months ended June 30, 2012, from SEK 4,168 million in the six months ended June 30, 2011, mainly as an effect of higher freight haulage revenues as a consequence of increased freight volumes, particularly generated from the new routes in the Irish Sea acquired in 2011.

Drilling. Drilling revenues consist of charter hires for our drilling rigs. Revenues from drilling operations decreased SEK 333 million, or 9%, to SEK 3,316 million in the six months ended June 30, 2012, from SEK 3,649 million in the six months ended June 30, 2011, mainly due to the rigs Stena Clyde and Stena Spey, which both were unutilized the first two months of 2012. Revenues also decreased as an effect of the sale of the rig Stena Tay in the fourth quarter of 2011 and a contract at lower day rates for Stena DrillMAX, offset by the operation of the new DrillMAX vessel Stena DrillMAX Ice, which started to operate June 15, 2012, together with the strengthening of the U.S. dollar against the SEK. In local currency, revenues decreased 15% in the six months ended June 30, 2012, compared to the same period last year 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 328 million, or 22%, to SEK 1,174 million in the six months ended June 30, 2012, from SEK 1,502 million in the six months ended June 30, 2011.

Revenues from crude oil tankers decreased SEK 621 million, or 58%, to SEK 448 million in the six months ended June 30, 2012, from SEK 1,069 million in the six months ended June 30, 2011, mainly reflecting the operation of our MR vessels as from April 2011 in the joint venture Stena Weco A/S 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 have also been reduced as an effect of a reduced fleet, offset by the strengthening of the U.S. dollar against the SEK.

As from January 1, 2012, LNG is reported as a new business area within shipping in the Stena AB Group. During 2011, the LNG business area was reported within the crude oil tanker segment. Revenues from LNG operation increased SEK 356 million, or 3560%, to SEK 366 million in the six months ended June 30, 2012, from SEK 10 million in the six months ended June 30, 2011, because of that the first of our LNG carriers was put into operation in May 2011, and the other two were both put into operation in July 2011. Revenue was negatively impacted by Stena Blue Sky being out of operation for 14 days in April 2012 because of a broken mooring, waiting time in-between charters for Stena Crystal Sky, resulting in 10 days loss of revenue in May 2012, and a propulsion failure for Stena Crystal Sky resulting in 14 days off hire in June 2012.

Revenues from chartering out Roll-on/Roll-off vessels decreased SEK 17 million, or 6%, in the six months ended June 30, 2012, to SEK 246 million from SEK 263 million in the six months ended June 30, 2011, mainly due to a weakening market with renegotiated charter contracts at lower day rates, offset by revenues generated by Highlanders from February 2011 and Stena Feronia from April 2011, respectively.

Revenues from Other Shipping decreased SEK 46 million, or 29%, to SEK 114 million in the six months ended June 30, 2012, from SEK 160 million in the six months ended June 30, 2011, mainly reflecting the receipt of USD 10 million (SEK 64.8 million) for a patent infringement in the first quarter of 2011.

Property. Property revenues consist of rents for properties owned and management fees for properties managed by the Company. Revenues from property operations increased SEK 41 million, or 3%, to SEK 1,214 million in the six months ended June 30, 2012, from SEK 1,173 million in the six months ended June 30, 2011, mainly due to higher rental income as an effect of decreased vacancy rates for our commercial properties in Sweden together with rental income for two new commercial properties in London, purchased in July 2011 and January 2012, respectively, offset by increased vacancy rates in our property portfolio in the Netherlands.

Stena AB and Consolidated Subsidiaries

New Businesses Adactum. Revenues consist of revenues from Adactum’s subsidiaries. Revenues from Adactum increased SEK 195 million, or 8%, to SEK 2,589 million in the six months ended June 30, 2012, from SEK 2,394 million in the six months ended June 30, 2011, mainly due to increased revenues from Blomsterlandet, which has increased its market share and also increased its number of shops together with favorable weather conditions in the early spring in Sweden. Revenues also increased as an effect of Ballingslöv’s acquisition of the Swedish company Macro, a manufacturer of shower systems, in the fourth quarter of 2011. Of the total revenues in the six months ended June 30, 2012, SEK 1,230 million related to Ballingslöv, SEK 751 million related to Blomsterlandet, SEK 549 million related to Envac and SEK 59 million related to Stena Renewable, as compared to SEK 1,129 million related to Ballingslöv, SEK 699 million related to Blomsterlandet, SEK 507 million related to Envac and SEK 58 million related to Stena Renewable in the six months ended June 30, 2011.

Other income

Net valuation on investment property. As a result of revaluation to fair value according to IAS 40 “Investment properties”, the Company had net gains of SEK 1 million for the six months ended June 30, 2012, as compared to gains of SEK 47 million for the six months ended June 30, 2011.

Net Gain on Sale of Vessels, Shipping. In the six months ended June 30, 2012 net gains of SEK 30 million were recorded on the sale of Stena Navigator, Stena Caledonia and Stena Caribbean. In the six months ended June 30, 2011, net gains of SEK 24 million were recorded on the sale of the vessels Stena Leader, Stena Pioneer and Stena Seafarer.

Net Gain on Sale of Properties. In the six months ended June 30, 2012 net gains of SEK 29 million were recorded. In the six months ended June 30, 2011, no properties were sold.

Direct operating expenses

Total direct operating expenses increased SEK 84 million, or 1%, to SEK 8,189 million in the six months ended June 30, 2012, from SEK 8,105 million in the six months ended June 30, 2011, mainly as a result of increased operating expenses in all segments except for the shipping and property segments together with the strengthening of the U.S. dollar and GBP against the SEK.

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 431 million, or 13%, to SEK 3,729 million in the six months ended June 30, 2012, from SEK 3,298 million in the six months ended June 30, 2011, mainly due to higher expenses for bunker fuel together with increased product and operating costs generated from new routes in the Irish Sea. Direct operating expenses for ferry operations for the six months ended June 30, 2012, were 80% of revenues, as compared to 79% for the six months ended June 30, 2011.

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 36 million, or 2%, to SEK 1,497 million in the six months ended June 30, 2012, from SEK 1,461 million in the six months ended June 30, 2011. The increase mainly reflects that the rig Stena DrillMAX Ice started to operate on June 15, 2012 and extra costs during off hire period for Stena Clyde, offset by that the rig Stena Spey, which were unutilized for the first two months of 2012, together with the reduction of operating expenses reflecting the sale of the rig Stena Tay in the end of 2011. Operating expenses were also increased as a result of the strengthening of the U.S. dollar against the SEK. Direct operating expenses from drilling operations for the six months ended June 30, 2012, were 45% of drilling revenues, as compared to 40% for the six months ended June 30, 2011.

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 decreased SEK 552 million, or 46%, in the six months ended June 30, 2012, to SEK 643 million from SEK 1,195 million in the six months ended June 30, 2011.

Direct operating expenses associated with crude oil tankers decreased SEK 676 million, or 62%, to SEK 418 million in the six months ended June 30, 2012, from SEK 1,094 million in the six months ended June 30, 2011, principally because our MR vessels, as from April 2011, were operating in the joint venture Stena Weco A/S, in which the operating results are reported as net revenue. The revenues and operating expenses of these vessels were previously reported gross. Operating expenses were also reduced as a result of the decreased number of vessels operated, offset by the strengthening of the U.S. dollar against the SEK. Direct operating expenses for crude oil operations for the six months ended June 30, 2012, were 93% of revenues, as compared to 103% for the six months ended June 30, 2011. Direct operating expenses for crude oil tankers include time-charter costs, which normally are fixed for periods between 6 months and 5 years in advance, while revenues in the spot market vary with each voyage.

Stena AB and Consolidated Subsidiaries

During 2011 the LNG business area was reported within the crude oil tanker segment. Operating expenses from LNG operations increased SEK 80 million, to SEK 80 million in the six months ended June 30, 2012, from SEK 0 million in the six months ended June 30, 2011. The expenses include costs for the broken mooring on Stena Blue Sky in April 2012 and propulsion failure on Stena Crystal Sky in June 2012. Direct operating expenses from the LNG operations for the six months ended June 30, 2012, were 22% of LNG revenues. The first of our LNG carriers was put into operation in May 2011, with the two remaining carriers put into operation in July 2011.

Direct operating expenses with respect to Roll-on/Roll-off vessels increased by SEK 38 million, or 43%, to SEK 127 million in the six months ended June 30, 2012, from SEK 89 million in the six months ended June 30, 2011, mainly due to increased costs of new vessels operated. Direct operating expenses for Roll-on/Roll-off vessels for the six months ended June 30, 2012, were 52% of revenues, as compared to 34% for the six months ended June 30, 2011.

Direct operating expenses with respect to Other Shipping increased SEK 6 million or 50 %, to SEK 18 million in the six months ended June 30, 2012 from SEK 12 million in the six months ended June 30, 2011. Direct operating expenses for Other Shipping for the six months ended June 30, 2012 were 16% of revenues, as compared to 8% for the six months ended June 30, 2011.

Property. Property expenses consist primarily of maintenance, heating and personnel costs. Direct operating expenses for property operations decreased SEK 6 million, or 1%, to SEK 439 million in the six months ended June 30, 2012, from SEK 445 million in the six months ended June 30, 2011, mainly due to reduced operating expenses as a consequence of lower cost for heating due to a warmer spring in 2012, offset by operating expenses for the two new commercial properties in London and by increased vacancy rates in our property portfolio in the Netherlands. Direct operating expenses for property operations for the six months ended June 30, 2012 were 36% of property revenues, as compared to 38% for the six months ended June 30, 2011.

New Businesses Adactum. Direct operating expenses for Adactum consist of expenses from Adactum’s subsidiaries. Direct operating expenses for Adactum operations increased SEK 173 million, or 10%, to SEK 1,878 million in the six months ended June 30, 2012, from SEK 1,705 million in six months ended June 30, 2011, mainly as an effect of Ballingslöv’s acquisition of the Swedish company Macro, a manufacturer of shower systems, in the fourth quarter of 2011. Operating expenses also increased due to raised cost for goods sold in Blomsterlandet, which has increased its market share and also increased its number of shops. Of the total operating expenses SEK 811 million related to Ballingslöv, SEK 648 million related to Blomsterlandet, SEK 408 million related to Envac and SEK 11 million related to Stena Renewable in the six months ended June 30, 2012, as compared to SEK 728 million related to Ballingslöv, SEK 599 million related to Blomsterlandet, SEK 368 million related to Envac and SEK 10 million related to Stena Renewable in the six months ended June 30, 2011. Direct operating expenses for Adactum operations for the six months ended June 30, 2012, were 73% of revenues, as compared to 71% for the six months ended June 30, 2011.

Selling and administrative expenses

Selling and administrative expenses decreased SEK 17 million, or 1%, to SEK 1,635 million in the six months ended June 30, 2012, from SEK 1,652 million in the six months ended June 30, 2011. Total selling and administrative expenses in the six months ended June 30, 2012, were 13% of total revenues, same as for the six months ended June 30, 2011.

Depreciation and amortization

Depreciation and amortization charges increased SEK 97 million, or 6%, to SEK 1,812 million in the six months ended June 30, 2012, from SEK 1,715 million in the six months ended June 30, 2011, mainly as a result of increased depreciation charges of new vessels delivered, offset by reduced depreciation charges for the drilling segment as an effect of the sale of the drilling rig Stena Tay in the fourth quarter of 2011. The strengthening 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 increase in depreciation and amortization charges.

Financial income and expense

Financial income and expense decreased by SEK (402) million to SEK (1,019) million in the six months ended June 30, 2012, from SEK (617) million in the six months ended June 30, 2011.

Share of affiliated companies’ results in the six months ended June 30, 2012, refers to the Company’s portion of the results of Midsona AB (publ), Gunnebo AB (publ), MPP MediaTec Group AB and Silurian Hallwood Plc.

Stena AB and Consolidated Subsidiaries

As of June 30, 2012, the Company’s interest in the capital of Midsona was 23.1%, its interest in the capital of Gunnebo was 26.1%, its interest in the capital of MediaTec was 42.8% and its interest in the capital of Silurian Hallwood was 29%. As of June 30, 2011, the Company’s interest in the capital of Midsona was 23.1%, its interest in the capital of Gunnebo was 26.1% and its interest in the capital of MediaTec was 42.8%.

Net gain (loss) on securities in the six months ended June 30, 2012, was SEK (13) million, of which SEK (29) million related to net realized losses on marketable securities and equity securities and investments in Special Purpose Entities (“SPEs”), SEK (32) million related to net unrealized losses on marketable securities and SEK 47 million related to the termination of the financial lease of Stena Carron. 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 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.

Interest income decreased by SEK 8 million to SEK 230 million in the six months ended June 30, 2012 from SEK 238 million in the six months ended June 30, 2011, due to increased interest income mainly from fixed interest instruments offset by decreased interest income related to investments in SPEs. Interest income related to investments in SPEs, included in total interest income decreased SEK 40 million to SEK 89 million in the six months ended June 30, 2012, from SEK 129 million in the six months ended June 30, 2011, due to the CDO 2002 investment being unwound during 2011.

Interest expense increased by SEK (248) million to SEK (1,158) million in the six months ended June 30, 2012 from SEK (910) million in the six months ended June 30, 2011 reflecting higher debt outstanding. Interest expense for investments in SPEs in the six months ended June 30, 2012, increased SEK (6) million to SEK (31) million from SEK (25) million in the six months ended June 30, 2011.

During the six months ended June 30, 2012, the Company had foreign exchange losses, net of SEK (27) million. During the six months ended June 30, 2011, the Company had foreign exchange losses, net of SEK 0 million.

Other financial income/(expense), net of SEK (101) million for the six months ended June 30, 2012, includes above all SEK (119) 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 18 million related to bunker hedges. Other financial income (expense) of SEK (189) million for the six months ended June 30, 2011 includes SEK (111) 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.

Income taxes

Income taxes for the six months ended June 30, 2012, were SEK (33) million, representing an effective tax rate of 20%, consisting of current taxes of SEK (123) million and deferred taxes of SEK 90 million. Income taxes for the six months ended June 30, 2011, were SEK (71) million, representing an effective tax rate of 20% consisting of current taxes of SEK (104) million and deferred taxes of SEK 33 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. InWe ~~prior~~meet ~~years, we 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~~June 3130, 2012, we had total cash and marketable securities of SEK 89,~~571~~401 million as compared with SEK 7,720 million as of December 31, 2011.

For the ~~three~~six months ended ~~March~~June 3130, 2012, cash flows provided by operating activities amounted to SEK ~~(374) million~~598million, as compared to SEK ~~821~~2,161 million in the first ~~three~~six months ended ~~March~~June 3130, 2011. For the ~~three~~six months ended ~~March~~June 3130, 2012, cash flows used in investing activities amounted to SEK (18,~~376~~202) million, including SEK (17,~~381~~715) million related to capital expenditures, as compared to SEK (~~856~~4,958) million, including SEK (16,~~261~~857) million related to capital expenditures, in the ~~three~~six months ended ~~March~~June 3130, 2011. Cash flows provided by financing activities for the ~~three~~six months ended ~~March~~June 3130, 2012 amounted to SEK 18,~~517~~082 million, as compared to SEK ~~635~~2,804 million in the ~~three~~six months ended ~~March~~June 3130, 2011.

As of ~~March~~June 3130, 2012, total construction in progress was SEK ~~5,775~~998 million, as compared to SEK 5,614 million as of December 31, 2011. The remaining capital expenditure commitment for newbuildings on order as of ~~March~~June 3130, 2012, was SEK ~~2,749~~265 million, of which SEK ~~2,495~~ 0 million and SEK ~~254~~265 million is due during 2012 and 2013, respectively. ~~Financing~~ ~~for~~The ~~approximately~~financing ~~91%~~remains ofto ~~the~~be ~~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.

As of ~~March~~ June 3130, 2012 total interest bearing debt was SEK 5058,~~354~~095 million, excluding debt in SPEs, as compared with SEK 49,501 million as of December 31, 2011. As of ~~March~~June 3130, 2012 total interest bearing debt in SPEs was SEK 3 4,~~986~~116 million as compared with SEK 4,143 million as of December 31, 2011.

As of ~~March~~June 3130, 2012, $~~930~~ 840 million was utilized under our $1 billion revolving credit facility, including $27 million used for issuing bank guarantees and letters of credit. As of December 31, 2011, $776 million was utilized under our $1 billion revolving credit facility, of which $26 million was used for issuing bank guarantees and letters of credit.

As of ~~March~~June 3130, 2012, $~~140~~133 was utilized under the $200 million revolving credit facility entered into by Stena Royal S.àr.l. (“Stena Royal”) as compared to $32 million as of December 31, 2011.

As of ~~March~~June 3130, 2012, SEK ~~300~~ 0 million of the SEK 450 million facility in Adactum was utilized compared to SEK 450 million as of December 31, 2011.

During 2010 we entered into a new SEK 6,660 million revolving credit facility with Svenska Handelsbanken and Nordea and guaranteed by EKN. This facility was ~~unutilized~~utilized with SEK 2,074 million as of ~~March~~ June 3130, 2012, and unutilized as of December 31, 2011~~, 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 and other vessel acquisitions, and to fund anticipated working capital requirements.

1621

Stena AB and Consolidated Subsidiaries

OTHER FINANCIAL INFORMATION – RESTRICTED GROUP

For the ~~three~~six months ended ~~March~~June 3130, 2012, Restricted Group Data represents the selected consolidated financial information excluding (i) the property business segment (other than two small properties), (ii) the business segment of Adactum, 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.

As of ~~March~~June 3130, 2012, 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.~~6314~~9632, the noon buying rate on ~~March~~June 30, 2012.

1722

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Income Statements – Restricted Group

	Three month period ended
	Six month period ended
	March 31, 2011			March 31, 2012
	June 30, 2011			June 30, 2012
	(unaudited)
	SEK			SEK			$
	(in millions)
Revenues:
Ferry operations		14,~~712~~168			14,~~947~~655			~~294~~669
Drilling		13,~~898~~649			13,~~326~~316			~~200~~476
Shipping		~~842~~1,502			~~556~~1,174			84169
Property		24			24			01
Other		4			56			1
Total revenues		49,~~458~~327			39,~~836~~155			~~579~~1,316
Net gain on sales of assets		—24			1528			24
Total other income		—24			1528			24
Direct operating expenses:
Ferry operations		(13,~~506~~298	)		(13,~~715~~729	)		(~~259~~536	)
Drilling		(~~719~~1,461	)		(~~644~~1,497	)		(97215	)
Shipping		(~~676~~1,195	)		(~~305~~643	)		(4692	)
Property		(12	)		(12	)		0
Other		0(1	)		0(4	)		0(1	)
Total direct operating expenses		(25,~~902~~957	)		(25,~~664~~875	)		(~~402~~844	)
Selling and administrative expenses		(~~575~~1,106	)		(~~506~~1,075	)		(76155	)
Depreciation and amortization		(~~801~~1,611	)		(~~845~~1,706	)		(~~127~~245	)
Total operating expenses		(48,~~278~~674	)		(48,~~015~~656	)		(~~605~~1,244	)
Income/(loss) from operations		~~180~~677			~~(164~~527	)		~~(24~~76	)
Net financial income and expenses:
Dividends received		116			—10			—1
Net gain (loss) on securities		9040			~~116~~41			176
Interest income		68137			54142			820
Interest expense		(~~297~~585	)		(~~318~~754	)		(48108	)
Foreign exchange gains (losses), net		13(1	)		(17	)		(32	)
Other financial income (expenses), net		(49129	)		(1664	)		(29	)
Total financial income and expenses		(~~174~~522	)		(~~181~~642	)		(2892	)
Income/(loss) after financial income and expenses		6155			(~~345~~115	)		(5216	)
Non-controlling interest		(3	)		0			0
Income/(loss) before tax		3152			(~~345~~115	)		(5216	)
Income taxes		4252			~~117~~103			1815
Net income/(loss)		45204			(~~228~~12	)		(341	)

1823

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Balance Sheets – Restricted Group

December 31, 2011

~~March~~June 3130, 2012

(unaudited)

SEK

(in millions)

ASSETS

Noncurrent assets:

Intangible assets

772

~~754~~762

~~114~~109

Tangible fixed assets:

Vessels

34,185

3243,~~666~~069

46,~~926~~185

Construction in progress

4,826

~~4,936~~316

~~744~~45

Equipment

1,492

1,~~433~~798

~~216~~258

Ports

1,795

1,~~868~~889

~~282~~271

Property

569

454

6865

Total tangible fixed assets

42,867

4147,~~357~~526

6,~~236~~824

Financial fixed assets:

Marketable securities

588

~~726~~658

~~110~~94

Intercompany accounts, noncurrent

6,570

65,~~496~~799

~~980~~833

Other assets

8,976

9,~~088~~351

1,~~370~~343

Total noncurrent assets

59,773

5815,~~421~~808

82,~~810~~270

Current assets:

Inventories

229

~~221~~241

3335

Trade debtors

2,533

2,~~406~~454

~~363~~352

Other receivables

1,403

1,~~853~~969

~~279~~283

Prepaid expenses and accrued income

1,022

1,710

258

Intercompany accounts, current

—

425

Short-term investments

2,417

2,293

346

Prepaid expenses and accrued income

1,022

2,594

373

Cash and cash equivalents

809

777

117

Short-term investments

2,417

2,489

357

Total current assets

8,413

9,260

1,396

Cash and cash equivalents

809

1,393

201

Total assets

68,186

67,681

10,206

Total current assets

8,413

11,565

1,662

Total assets

68,186

75,661

10,865

SHAREHOLDERS’ EQUITY AND LIABILITIES

Shareholders’ equity:

Share Capital

Reserves

24,251

24,~~186~~048

3,~~647~~454

Equity attributable to shareholders of the company

24,256

24,~~491~~053

3,~~648~~455

Non-controlling interest

109

110

1716

Total Equity

24,365

24,~~601~~163

3,~~665~~471

Noncurrent liabilities:

Deferred income taxes

1,115

~~1,131~~963

~~171~~137

Other provisions

2,221

1,~~471~~795

~~222~~258

Long-term debt

24,~~138~~387

2431,~~677~~797

34,~~721~~566

Senior notes

6,~~485~~236

6,~~149~~162

~~927~~885

Capitalized lease obligations

1,475

1,~~463~~339

~~221~~192

Other noncurrent liabilities

1,242

1,~~083~~019

~~163~~146

Total noncurrent liabilities

36,676

3343,~~372~~075

56,~~032~~184

Current liabilities:

Short-term debt

1,786

12,~~838~~249

~~277~~323

Capitalized lease obligations

219

93214

1431

Trade accounts payable

517

~~840~~757

~~127~~109

Income tax payable

063

Other liabilities

1,751

12,~~702~~238

~~256~~321

Intercompany liabilities

850

~~750~~—

~~113~~—

Accrued costs and prepaid income

1,965

2,~~183~~902

~~329~~417

Total current liabilities

7,145

78,~~406~~423

1,~~116~~210

Total shareholders’ equity and liabilities

68,186

6775,~~681~~661

10,~~206~~865

1924

Stena AB and Consolidated Subsidiaries

Condensed Consolidated Statements of Cash Flow – Restricted Group

	Three month period ended
	Six month period ended
	March 31, 2011			March 31, 2012
	June 30, 2011			June 30, 2012
	(unaudited)
	SEK			SEK			$
	(in millions)
Net cash flows from operating activities:
Net income/(loss)		45204			(~~228~~12	)		(341	)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization		~~801~~1,611			~~845~~1,706			~~127~~245
Gain on sale assets		—(40	)		(1528	)		(24	)
(Gain) loss on securities, net		(9024	)		(~~116~~41	)		(176	)
Unrealized foreign exchange (gains) losses		26255			(~~222~~346	)		(3450	)
Deferred income taxes		(55116	)		(60182	)		(926	)
Non-controlling interest		3			—0			—0
Other non-cash items		~~158~~153			~~141~~(211	)		21(30	)
Provision for pensions		50(201	)		(~~122~~178	)		(1826	)
Net cash flows from trading securities		~~(42~~49	)		(4557	)		(78	)
Changes in working capital		(~~188~~9	)		(1,~~158~~181	)		(~~175~~169	)
Net cash provided by/used in operating activities		~~708~~1,885			(~~980~~530	)		(~~148~~75	)
Net cash flows from investing activities:
Purchase of intangible assets		(916	)		(617	)		(12	)
Cash proceeds from sale of property, vessels and equipment		179			~~141~~156			2122
Capital expenditure on property, vessels and equipment		(~~993~~6,293	)		(~~557~~6,396	)		(84918	)
Purchase of subsidiaries, net of cash acquired		(119	)		—0			—0
Proceeds from sale of securities		84109			1537			25
Purchase of securities		(5385	)		(6377	)		(911	)
Other investing activities		(28137	)		445			16
Net cash used in investing activities		(16,~~117~~462	)		(~~466~~6,252	)		(70898	)
Net cash flows from financing activities:
Proceeds from issuance of debt		329			~~625~~6,138			94881
Principal payments on debt		(~~401~~591	)		(~~362~~693	)		(5599	)
Net change in borrowings on line-of-credit agreements		~~130~~3,704			~~964~~2,437			~~145~~350
Principal payments on capital lease obligations		(844	)		(~~107~~148	)		(1621	)
Net change in restricted cash accounts		~~1,227~~958			~~104~~(46	)		16(7	)
Intercompany accounts		62773			~~180~~62			279
Other financing activities		9			(2	)		0
Dividend paid		(240	)		(260	)		(37	)
Net cash used in/provided by financing activities		1,022			1,402			211
Other financing activities		174			(120	)		(17	)
Effect of exchange rate changes on cash and cash equivalents		(17	)		12			2
Net cash provided by financing activities		4,763			7,370			1,059
Net change in cash and cash equivalents		596			(32	)		(5	)
Effect of exchange rate changes on cash and cash equivalents		23			(4	)		(1	)
Cash and cash equivalents at beginning of period		727			809			122
Net change in cash and cash equivalents		209			584			85
Cash and cash equivalents at end of period		1,323			777			117
Cash and cash equivalents at beginning of period		727			809			116
Cash and cash equivalents at end of period		936			1,393			201

2025

Stena AB and Consolidated Subsidiaries

Other data – Restricted Group

Three month period ended

Six month period ended

March 31, 2011

March 31, 2012

June 30, 2011

June 30, 2012

SEK

(in millions)

OTHER DATA:

Adjusted EBITDA

12,~~049~~425

~~735~~2,375

~~111~~341

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, 2011			March 31, 2012
	June 30, 2011			June 30, 2012
	SEK			SEK			$
	(in millions)
Income/(loss) from operations		180			(164	)		(24	)
Income from operations		677			527			76
Adjustments:
Interest income/(loss)		68			54			8
Interest income		137			142			20
Depreciation and amortization		~~801~~1,611			~~845~~1,706			~~127~~245
Adjusted EBITDA		12,~~049~~425			~~735~~2,375			~~111~~341
Adjustments:
Gain on sale of vessels		—(24	)		(1528	)		(24	)
Net cash flows from trading securities		~~(42~~49	)		(4557	)		(78	)
Interest expenses		(~~297~~585	)		(~~318~~754	)		(48108	)
Unrealized foreign exchange (gains) losses		26255			(~~222~~346	)		(3450	)
Provisions for pensions		50(201	)		(~~122~~178	)		(1826	)
Other non cash items		~~158~~153			~~141~~(211	)		21(30	)
Changes in working capital		(~~188~~9	)		(1,~~158~~181	)		(~~175~~169	)
Other items		(48178	)		24(150	)		4(21	)
Net cash provided by operating activities		~~708~~1,885			(~~980~~530	)		(~~148~~75	)

2126

Filing Compare · STENA AB