NSC General Director Alexander Bryntsev: "The main goal is the development"

Northern Shipping Company has summarized its ten-month operational performance in 2015. Despite the current understandable economic and international problems facing the nation, namely sanctions, fluctuations of USD and the EUR, NSC has achieved excellent results at the end of the company's anniversary year. We asked NSC' General Director Alexandr M. Bryntsev to prove success in figures.

- Alexander, how did you manage to achieve such good results in this difficult economic environment in this country?

- Success does not come randomly, particularly in the current difficult times. All this was due to a focused, I would say methodical, work of the Board of Directors, the company's management. Balanced freight rates policy has been an important factor in the growth of our financial performance. We diversify the portfolio of orders both working with regular customers on a long term agreements and chartering out our vessels. Talk about expanding the business at this time is not necessary, the main thing to keep what is, to cut costs, offer customers favorable and comfortable conditions of carriage .

- What are the results of your balanced policy in figures?

- Revenues for 10 month 2015 rose 14.5% as compared to the same period last year. Gross margin totaled RUB 205.7 million on a profit of 196.2 million rubles a year earlier. Pre-tax profit grew by 2.25 times to 241 million rubles. Thanks to the high efficiency of the company's fleet operating income was above the planned target of USD 1, 66 million.

Net income of NSC for the first three quarters 2015 amounted to 163.2 million rubles., or 2.6 times up over the same period a year before. There was also a significant increase in short sea traffic, a threefold growth from last year.

- Impressive figures, but there are always real people and measures behind them?

- It's true, that was devoted, highly professional work of the crews of our fleet: M/V S. Kuznetsov, M/V Engineer Trubin, M/V Engineer Veshnyakov, M/V Ivan Ryabov and a lot of others. Onshore employees have also contributed – managers of transport fleet operation and maintenance departments, all coastal facilities employees.

Actually, Yamal based port of Sabetta accounts for the largest volume of coastal traffic. But I have to note that from year to year we are expanding our transportation destinations in the Arctic. Our seafarers are well prepared and understand the specifics of shipping in the Arctic, offshore transshipment in adverse weather conditions. Pevek, Dixon, Novaya Zemlya, Igarka, Khatanga, Svalbard, Franz Josef Land – these are all well known shipping lanes for our crews.

Previously, navigation in the Arctic was possible only in the summer season, but in last two years we consider the Arctic accessible year round. Sabetta has appeared to be the starting point for us to launch regular winter navigation. The Arctic has shown and proved that only ice-class vessels and experienced crews are able to operate there. And all this is available in our company.

- Mr. Bryntsev, Northern Shipping Company has long been transporting to the north timber from PPM. Any changes?

- Yes, our fleet is primarily tailored to timber shipping. We have a dedicated fleet and experience in the cargo transport, long-standing customers. For timber shipping we have a special “Mekhanik” class series of log/timber carriers. We see growth in this segment. From our, North Basin, including Arkhangelsk and Onega timber exports volume over the past ten months leaped by more than 20 percent.

This summer we signed a long-term contract with an Egyptian partner for the transportation of export lumber to Egypt. Over the next five years we are to transport to the African continent more than half a million of cubic meters of board lumber from the North.

- What is the level of social responsibility towards employees at NSC, which is important for any company today?

- We have a workforce exceeding 1,000 people. Nearly 90% of them are operating personnel. This year we've raised the salaries of all our employees by 10%, both at shore based offices and of shipboard personnel. We've also increased the cost the crews diet.

In 2015, the Board of Directors implemented a new system of incentives: employees receive their profit-sharing distribution. The bonus plans stimulating employees are widespread in the world and is very popular in large corporations. Following successful financial performance in H1 2015, the Board of Directors of JSC Northern Shipping Company has approved a significant bonuses plan for its employees. This decision, like many others, show a balanced policy of NSC both towards each employee of the Company, and in respect of shareholders. This is good news in the current, quite difficult time.

- What are the NSC Board of Directors plans? Do you plan to upgrade the fleet, any other large-scale projects? These issues concern many people.

Of course, the main goal is the development. Among the priority objectives facing the Board is to continue modernization, fleet upgraded and expansion in the shipping market.

However, we should not forget that no company will be able to achieve the desired level of development without improving internal processes. Therefore, the Board of Directors has to solve such important tasks as optimizing internal business processes in the company, improve corporate culture.

The solution of these fundamental problems will enable the Northern Shipping Company to continue to improve the quality of its employees, to become one of the major carriers in the Arctic and to compete successfully with leading transport companies in Russia.

Interviewed by Elena Kovaleva.