Saab's Annual General Meeting on April 1 approved the Parent Company’s Income Statement and Balance Sheet, and the Consolidated Income Statement and Balance Sheet for the financial year 2023. 40 per share to the shareholders, to be paid out in two equal instalments. 20 per share is paid with the record date Monday, 15 April 2024.
80 per share (provided implementation of the share split 4:1) with the record date Tuesday, 8 October 2024. Payment of the dividend is expected to be made from Euroclear Sweden AB on Thursday 18 April 2024 and Friday 11 October 2024, respectively. The Board of Directors and the CEO were discharged from liability for the financial year 2023.
Anders Ynnerman was elected as new Board member and the following Board members were re-elected; Lena Erixon, Henrik Henriksson, Micael Johansson, Danica Kragic Jensfelt, Johan Menckel, Bert Nordberg, Erika Söderberg Johnsson, Sebastian Tham, Marcus Wallenberg and Joakim Westh. Marcus Wallenberg was re-elected as Chairman of the Board. At the Board Meeting following the Annual General Meeting, Bert Nordberg was re-elected as Deputy Chairman of the Board.
Geopolitical unrest and uncertainty will continue for the foreseeable future.
The Annual General Meeting decided to re-elect PricewaterhouseCoopers AB as Auditor until the close of the Annual General Meeting 2025. The General Meeting decided, in accordance with the Nomination Committee’s proposal, that the Board fees shall be SEK 2,250,000 to the Chairman of the Board, SEK 850,000 to the Deputy Chairman, and SEK 740,000 to each of the other Board members elected by the General Meeting and not employed by the Company. Compensation for work in the Audit Committee shall be SEK 360,000 to the Chairman and SEK 230,000 to each of the other Audit Committee members.
Fees to the Auditor are to be paid according to approved invoice. The Annual General Meeting decided to approve the Board of Directors’ report on remuneration for the financial year 2023. The Annual General Meeting decided in accordance with the Board’s proposal of a long-term incentive programme 2025 (“LTI 2025”), consisting of three parts: Share Matching Plan 2025, Performance Share Plan 2025 and Special Projects Incentive 2025.
LTI 2025 comprises a maximum of 4,400,000 shares of series B provided implementation of the share split 4:1. Saab's financial performance for the fourth quarter and full year 2024 showed strong growth. Order bookings for the fourth quarter amounted to SEK 17,556m (31,501), driven by small and medium-sized orders, resulting in an order backlog amounting to SEK 187bn (153).
If the conflict is short-lived and Iranian attacks on the Gulf countries and in the Strait of Hormuz cease, oil and LNG prices would fall back sharply with the price of Brent crude reaching $65pb [per barrel] by the end of the year.
Sales in the quarter amounted to SEK 20,850m (16,122) with an organic growth of 29%, driven by all business areas. Sales and sales growth for the quarter and the full year was in line with the Q4 update provided on January 17, 2025. 6) in the quarter.
27), an increase of 17%. Operational cash flow amounted to SEK 3,558m (3,691) and was driven by large customer payments in the quarter. Net liquidity position at the end of the period was SEK 2,211m compared to SEK 2,343m at year-end 2023.
60). Outlook for 2025 includes an organic sales growth between 12-16%, an EBIT growth higher than the organic sales growth and a positive operational cash flow. m.
Oil prices would rise further during the conflict to around $130pb in Q2 [second quarter]. … Shipments through the Strait of Hormuz would be severely disrupted.
(CET). According to major media, Saab made record profits in 2023, with growth of 36 percent. The company also gained one hundred thousand new shareholders.
S. President Donald Trump praised progress in talks between Russia and Ukraine in December. The wars continued.
The company's growth occurs against a backdrop of severe global economic disruption. According to research from five sources, the United States-Israeli war on Iran and Tehran’s retaliatory strikes across the Gulf region have upended global financial and energy markets, raising concerns of a global economic crisis – and even of a recession. Since the US-Israeli strikes on Iran began on February 28, Tehran has launched a wave of ballistic missiles targeting Israel, US military bases, oil depots and other infrastructure across the Gulf region.
Falling commodity prices and better supply conditions can provide a buffer against geopolitical shocks.
Iranian attacks on several vessels passing through the Strait of Hormuz have also dramatically reduced traffic in the narrow channel, through which about 20 percent of global oil and gas supplies transit. On Thursday, Iran also attacked fuel tankers in Iraqi waters. As of Monday morning, Brent crude, the industry benchmark, was priced at $106 per barrel, up more than 40 percent from $72 per barrel on February 27.
On March 2, QatarEnergy suspended its LNG production after an Iranian drone attack, straining the global LNG market. About 84 percent of the crude oil and 83 percent of the LNG that passed through the strait in 2024 was bound for Asia, according to data from the US Energy Information Administration. China, India, Japan and South Korea accounted for nearly 70 percent of those oil shipments with about 15 percent bound for the rest of Asia, according to the agency.
com, Muyu Xu, a senior crude oil analyst at Kpler, described that liquified natural gas prices have risen even more sharply – by almost 60 percent – since the start of the war. He also described that prices of refined products from petrol and gas oil to jet kerosene and fuel oil have also seen significant increases, and that trend is expected to continue if energy flows through the Strait of Hormuz remain largely shut. Furthermore, he described that as crude oil and refined products from the Middle East Gulf are unable to reach buyers, countries, particularly in Asia, are scrambling to secure alternative supplies at higher prices and adopt emergency measures to manage inventories and demand.
But they will do little to alleviate the pain of high food prices in developing countries where food-price inflation is double the norm in advanced economies. High prices, conflict, extreme weather, and other shocks have made more than 725 million people food insecure in 2024.
Economists present sharply conflicting projections for oil prices and the broader economic impact. On one side, Neil Shearing and his team of economists at Capital Economics warned that oil prices would rise further during the conflict to around $130pb in Q2, with shipments through the Strait of Hormuz severely disrupted. Conversely, the World Bank’s latest Commodity Markets Outlook presents a different long-term view.
According to the World Bank’s latest Commodity Markets Outlook, global commodity prices are set to tumble to a five-year low in 2025 amid an oil glut that is so large that it is likely to limit the price effects even of a wider conflict in the Middle East. Even so, overall commodity prices will remain 30% higher than they were in the five years before the COVID-19 pandemic. 2 million barrels per day, a glut that has been exceeded only twice before—during the pandemic-related shutdowns in 2020 and the 1998 oil-price collapse.
The new oversupply partly reflects a major shift in China, where oil demand has essentially flatlined since 2023 amid a slowdown in industrial production and an increase in sales of electric vehicles and trucks powered by liquefied natural gas (LNG). In addition, several countries that are not part of the Organization of Petroleum Exporting Countries or its allies (OPEC+) are expected to ramp up oil production. OPEC+ itself maintains significant spare capacity, amounting to 7 million barrels per day, almost double the amount on the eve of the pandemic in 2019.
I am pleased to report that Saab ended 2024 in a strong way. We delivered a better-than-expected organic sales growth, improved our operational performance and generated a positive cash flow. We achieved all this while investing significantly in expansion to meet higher customer demand and strengthening our market position. In the wake of the global geopolitical uncertainty, Saab is committed to being a reliable partner, supporting countries in building their defence capabilities and contributing to increased European defence capacity.
From 2024 through 2026, global commodity prices are projected to plummet by nearly 10%. Global food prices are set to fall 9% this year and an additional 4% in 2025 before leveling off. That would still leave food prices nearly 25% above the average level from 2015 through 2019.
Energy prices are expected to drop by 6% in 2025 and an additional 2% in 2026. Falling food and energy prices should make it easier for central banks to control inflation. However, an escalation in armed conflicts could complicate that effort by disrupting energy supply and driving up food and energy prices.
Over the past year, conflict in the Middle East has brought significant volatility to oil prices—particularly because of concerns that the oil and gas infrastructure of major commodity producers could be damaged if the conflict were to intensify. Assuming the conflict does not intensify, the annual average price of Brent crude is expected to fall to a four-year low of $73 in 2025, down from $80 a barrel this year. But the report also assesses what might happen if the conflict were to escalate, specifically if it resulted in reducing the global oil supply by 2%, or 2 million barrels per day, by the end of this year—a scale of disruption that occurred during the 1973 oil embargo.
This contradiction highlights a fundamental disagreement on the near-term trajectory of oil prices and the economic impact of Middle East conflicts, with Al Jazeera reporting high current prices and potential for further increases, while the World Bank projects a decline based on long-term supply-demand dynamics, leaving readers uncertain about the immediate financial and energy market outlook. Indermit Gill, World Bank Group’s Chief Economist and Senior Vice President, stated that falling commodity prices and better supply conditions can provide a buffer against geopolitical shocks. He added that they will do little to alleviate the pain of high food prices in developing countries where food-price inflation is double the norm in advanced economies.
High prices, conflict, extreme weather, and other shocks have made more than 725 million people food insecure in 2024. Neil Shearing and his team also noted that if the conflict is short-lived and Iranian attacks on the Gulf countries and in the Strait of Hormuz cease, oil and LNG prices would fall back sharply with the price of Brent crude reaching $65pb by the end of the year. The precise impact of the Middle East conflicts on Saab's order bookings and sales growth beyond the reported figures is not detailed.
Saab's leadership explicitly ties the company's strong position to this volatile environment. Micael Johansson, President and CEO of Saab, stated that he is pleased to report that Saab ended 2024 in a strong way, delivering better-than-expected organic sales growth, improved operational performance, and generated a positive cash flow. He added that Saab achieved all this while investing significantly in expansion to meet higher customer demand and strengthening its market position.
In the wake of the global geopolitical uncertainty, Saab is committed to being a reliable partner, supporting countries in building their defence capabilities and contributing to increased European defence capacity. Marcus Wallenberg, Saab's chairman, remarked that geopolitical unrest and uncertainty will continue for the foreseeable future. The reasons behind Sara Mazur's decision to decline re-election to Saab's Board of Directors are not specified.