• 2018 November 16 18:02

    Sovcomflot reported its results for Q3 and 9M ending 30 September 2018

    Sovcomflot (SCF Group), a world leader in energy shipping and offshore services to the oil and gas industries specializing in harsh environment work, today reported its results for the third quarter (Q3) and nine months (9M) ending 30 September 2018.

    During the reporting period, the tanker freight markets remained in a depressed state as vessel supply continued to outstrip vessel demand. Signs of a better balance have emerged more recently following longer term oil price recovery and worldwide fleet removals over 2H 2017 and 1H 2018. These factors, in part, led to the start of a recovery in freight levels in the conventional tanker fleet towards the end of Q3 2018 and in the large crude vessel segments in particular. The improvement has continued into Q4 2018 and has resulted in a healthy increase in earnings across the Group’s crude carrying vessels, an improvement that is forecast to hold steady in the near term and into Q1 2019. 

    Financial highlights for the third quarter to 30 September 2018

    USD Millions

    Q3 2018

    Q3 2017

    %

    Gross revenue (Freight and hire)

    396.4

    350.5

    +13.1

    Time-charter equivalent (TCE) revenue

    262.6

    255.2

    +2.9

    EBITDA*

    146.9

    125.4

    +17.1

    Net profit (loss)

     0.3

    (22.0)

    -

    * EBITDA calculated on adjusted basis as operating profit before depreciation and amortisation adjusted by gain / (loss) on sale of subsidiaries, gain/(loss) on sale of equity-accounted investments, other operating revenues / (expenses) and interest income.

    Financial highlights for the nine months to 30 September 2018 

    USD Millions

    9M 2018

    9M 2017

    %

    Gross revenue (Freight and hire)

    1,106.5

    1,060.7

    +4.3

    Time-charter equivalent (TCE) revenue

    774.0

    786.0

    -1.5

    EBITDA

    414.6

    408.3

    +1.5

    Net profit (loss)

    Including non-cash vessel value impairment provision

    (57.5)

    (45.9)

    (6.8)

    -

    ** The net loss recorded for the nine month period was USD 57.5 million (9M 2017: USD 6.8 million net loss). This includes a non-cash vessel value impairment provision of USD 45.9 million, in the first nine months of 2018, relating to some older crude oil and oil product tankers (reflecting a reassessment of their longer-term value in use, given the historic freight market lows reached earlier in 2018).


    Operational highlights Q3/9M 2018

    In February, a new high-tech multifunctional icebreaking platform supply vessel, Yevgeny Primakov, entered service under a 20-year time-charter agreement with Sakhalin Energy Investment Company Ltd.

    In June, Sovcomflot and PAO Novatek signed a strategic partnership agreement to develop together logistical support for Yamal LNG, Arctic LNG-2 and other projects of NOVATEK.

    In July Gagarin Prospect, the world’s first Aframax tanker to use cleaner burning LNG as her primary fuel, entered the fleet under a long-term time-charter with Shell. This vessel is pioneering the use of Marine LNG for large capacity tankers, especially those not tied to fixed routes or set timetables.

    In August, the Group’s LNGC Pskov loaded the first cargo of LNG produced at the Yamal LNG’s Train 2 in Northern Russia.

    Subsequent to the period, in October, Lomonosov Prospect, the Group’s second Green Funnel Aframax tanker completed its maiden voyage along the Northern Sea Route (NSR) carrying clean petroleum products. During the voyage, the crew successfully tested the operation of the ship’s engines and fuel system controls using LNG, as well as the operation of navigation equipment and machinery in ice conditions at sub-zero temperatures.

    Commenting on the Group’s results Sergey Frank, President & CEO of PAO Sovcomflot, said:

    “The Group returned to positive numbers in Q3 2018 with continued growth in SCF’s industrial, fixed income businesses. The Offshore and Gas divisional performances remain at the core of the Group’s profitability and earnings performance, contributing now around 60% of Group’s net revenues. The green shoots of recovery in the conventional tanker market and in the larger crude sector in particular, are encouraging for Q4 2018 and may bring a welcome earnings boost on top of that provided by the Gas and Offshore divisions. Of particular note, we achieved a key milestone in our drive to innovate within the tanker industry with the delivery and the first LNG fuelling of Gagarin Prospect in partnership with Shell and the project is an excellent example of SCF partnering its client to harness technological innovation to provide cleaner, safer and more efficient maritime transportation services.”

    Nikolay Kolesnikov, Sovcomflot Senior Executive Officer & Chief Financial Officer, said:

    “During the nine month period, the Group completed financing and refinancing transactions amounting to USD 424.0 million in total including a USD 106.0 million long-term facility with Sberbank, to finance an Arctic shuttle tanker and a USD 252.0 million long-term facility with international banks to finance six Green Funnel Aframax tankers. SCF’s long-term offshore and gas businesses increased their TCE revenues by 17.7 per cent and 14.5 per cent respectively in the nine month period, compared with the first nine months of 2017. The company continues to enjoy an exceptionally strong pipeline of future contracted revenues amounting to a total of USD 7.7 billion.”

    Fleet summary

    As at 30 September 2018, the Group’s fleet (including vessels owned, chartered-in, and in joint ownership with third parties) comprised 147 vessels with a combined deadweight of approximately 12.7 million tonnes.

    SCF Press Service

    PAO Sovcomflot (SCF Group) is one of the world's leading shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas exploration and production. The company’s own and chartered fleet includes 147 vessels with a total deadweight of 12.7 million tonnes, of which 80 vessels have an ice class. 8 vessels are under construction.

    Sovcomflot is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The company is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.




2018 December 11

13:02 COSCO SHIPPING Ports and Abu Dhabi Ports inaugurate CSP Abu Dhabi Terminal
12:46 Throughput of Russian seaports in 11M’18 grew by 4.2% to 746.81 million tonnes
12:13 Alfa Laval sells more than 100 GCU units for LNG newbuilds
12:01 Overseas Shipholding Group and American Shipping Company jointly announce extension of tanker charters
11:44 One icebreaker escort operation performed in eastern part of Gulf of Finland during 24 hours on December 10-11
11:40 The second phase of IMO-implemented safe and sustainable ship recycling project in Bangladesh starts
11:17 Bunker prices are flat at the Far East ports of Russia (graph)
10:58 NYK сoncludes long-term charter agreement for three LNG carriers with MC
10:30 MAN Cryo and partners develop marine liquid-hydrogen fuel-gas system
10:05 Port of Gdansk reports new quarterly record
09:39 Brent Crude futures price up 0.37% to $60.19, Light Sweet Crude – up 0.31% to $51.16
09:16 Baltic Dry Index is up to 1,385 points

2018 December 10

18:08 US major retail container ports imports reach 2 million containers in October 2018
17:50 Taganrog Sea Commercial Port spent USD 67,300 for its environmental programme in 9M’2018, up 6% YoY
17:27 Icebreakers of FSUE Rosmorport assisted 322 ships in navigation season 2018-2019
17:06 Nexans awarded contract for the manufacturing, delivery and installation of 350 kV HVDC submarine cable in the Philippines
16:49 Throughput of port Riga (Latvia) in 11M’18 climbed by 6.5% Y-o-Y to 33.1 million tonnes
16:33 Konstantin Ponomarev appointed as head of RS Nuclear Ships Branch
16:10 Ship Recycling Transparency Initiative launches new online platform
15:58 MOL to participate in construction, ownership, operation of FSRU for Jawa 1 gas-fired IPP project in Indonesia
15:52 MOL LNG сarrier LNG Fukurokuju rescues castaway
15:26 Gasum consolidates its position as the leading Nordic LNG provider
14:58 NIBULON Shipbuilding and Repair Yard adds a new high-capacity German crane to its cranes
14:25 BIMCO publishes two 2020 sulphur clauses
14:00 Average wholesale prices for М-100 HFO down to RUB 16,794 in RF spot market
13:09 EU NAVFOR marks 10 years of operations
12:44 Pertti Korhonen to chair Traffic Management Finland BoD
12:07 Incheon Port container traffic increases by 10.4% in October 2018
11:51 Beginning of icebreaker assistance period announced at Big Port St. Petersburg
11:30 Cargo traffic in Volga Basin of Russia’s IWW in navigation season 2018 fell by 14.6% Y-o-Y to 36.662 million tonnes
11:07 Verifavia Shipping signs cooperations with 8 ROs to support IMO DCS verification
10:48 Port of Liepaja (Latvia) handled 6.89 million tonnes of cargo in 11M'18, up 13.8% Y-o-Y
10:24 Port of HaminaKotka throughput in 11M’2018 grew by 11.5% Y-o-Y to 14.89 million tonnes
10:07 Oman signs Jeddah Amendment on illicit maritime activity
09:45 Brent Crude futures price up 0.45% to $61.95, Light Sweet Crude – up 0.17% to $52.52
09:19 Baltic Dry Index is up to 1,372 points
09:07 CMA CGM announces FAK rates from Asia to the Middle East Gulf
08:07 Torqeedo displays 2019’s new electric boating products at Salon Nautique International de Paris
07:34 chainPORT concludes its 4th Annual Meeting at the Port of Barcelona

2018 December 9

17:01 Jan De Nul starts beach protection project in Benin
16:06 MOL to participate in construction, ownership, operation of FSRU for Jawa 1 Gas-Fired IPP Project in Indonesia
14:40 Coast Guard continues search for survivors of capsized migrant vessel off Dominican Republic
13:38 CMA CGM announces FAK rates for Asia-Middle East Gulf trade
11:39 MHI Vestas clinches largest MW turbine order for Scotland's Moray Firth

2018 December 8

17:15 Huntington Ingalls Industries names Herman Shelanski as new VP, Business Development at it's shipbuilding division
16:07 Gladding-Hearn built pilot boat delivered to Southwest Alaska Pilots Association
13:12 EGCSA blasts MPA's ban on open-loop scrubbers in Singapore
10:28 Torqeedo displays 2019’s new electric boating products at Salon Nautique International de Paris.

2018 December 7

18:01 Naming ceremony for Arctic condensate tanker Boris Sokolov held at Guangzhou Shipyard International
17:38 Tellurian and Vitol sign MOU for 15-year LNG sale on JKM
17:14 Port of Tallinn rewards emission-reducing ships with a discount of up to 8% on tonnage fees
16:50 Vladimir Putin presents Captain Zybko with Distinguished Maritime Service Order
16:26 BSAP updates move forward at HELCOM key meeting
16:02 Orange Business Services keeps Arctic Shipping Company fleet connected along the Northern Sea Route
15:37 EU NAVFOR promotes maritime security dialogue in Somalia
14:59 Protection structures to be built at the port of Sochi
14:25 Northern Fleet's frigate Admiral Gorshkov takes part in training in the Barents Sea
14:08 ABS signs MOU with KOMERI to create a new facility dedicated to improving the safety of LNG as fuel
13:08 Crowley adds 400 new refrigerated containers to its fleet
12:26 Freight turnover of Neva-Metal (Saint-Petersburg) in 11M’18 climbed by 3% Y-o-Y to about 2.9 million tonnes