• 2019 March 18 10:15

    SCF achieved adjusted profit of USD 6.9 million for 2018 vs USD 5.3 million loss for 2017

    SCF Group says 2018 proved to be a second consecutive challenging year for the tanker industry, with trading conditions remaining extremely difficult and the spot rates well below their historical averages. There was, however, a visible rebound in freight rates in the Q4, reflecting a balancing between tanker supply and demand, following a sustained period of tanker fleet removals and an increase in crude oil demand from Asian refiners in particular. In Q4 the Group has managed to increase its revenue base and achieved a profit of USD 11.9 million against a USD 106.2 million loss in 2017. The annual results reflected a strong contribution from the industrial shipping business (comprising offshore services and LNG transportation). These activities now account for 57.2 per cent of the Group’s TCE revenues (up from a 50.9 per cent share in 2017).

    Taking into account the challenging conditions in the conventional tanker markets, and in accordance with IFRS accounting standards, the Group undertook an impairment review of vessel values for the year ended 31 December 2018. This resulted in an impairment charge of USD 49.3 million (2017: USD 29.0 million). Adjusting for this charge and other non-operating costs, amounting to USD 3.2 million in total (2017: USD 78.7 million), the Group achieved an adjusted profit of USD 6.9 million for the year (2017: USD (5.3) million loss).

    • Yevgeny Primakov (Icebreaker Ice-15) joined the fleet, the final vessel in a series of four new generation IBSV’s, engaged under a long-term time-charter agreement with Sakhalin Energy, which makes a total fleet of 10 supply and standby vessels servicing SEIC and ENL at Sakhalin island (Sea of Okhotsk). 
    • The world’s first Aframax tanker to use LNG as her primary fuel Gagarin Prospect (114,000 DWT) entered service (July) on long-term time charter to Shell. In October, Gagarin Prospect completed her first commercial voyage using LNG fuel, from Primorsk to Rotterdam as part of Sovcomflot’s commitment to drive down tanker industry emissions. 
    • During the year Sovcomflot ordered a further two new generation ‘Green Funnel’ Aframax tankers as well as three LNG-fuelled MR product carriers from Zvezda shipyard (Primorsky Krai). Vessels using LNG fuel release 100 per cent less Sulphur Oxide (SOx), 76 per cent less Nitrogen Oxide (NOx), 27 per cent less Carbon Dioxide (CO2) and 100 per cent fewer particulate matters into the atmosphere than those with engines burning standard marine fuels. They exceed rather than merely comply existing and anticipated emissions regulations, including the IMO’s new global limit for sulphur in marine fuel oil that applies from 1 January 2020 
    • The Group’s LNGC Pskov loaded the first cargo of LNG from Yamal LNG’s second train (August) and in November completed the first open water ship-to-ship transfer of cargo for Yamal LNG 
    • Christophe de Margerie, the Group’s pioneering icebreaking LNGC loaded the first cargo (December) from Yamal LNG’s third train. 
    • Sovcomflot was successful in international LNG tenders and new long-term contracts with Total and Shell, to add to the Group’s LNG portfolio - fully in line with the chosen strategy of growing its fixed rate/fixed term liquefied gas transportation business with core clients 
    • Time-charters for four ice-class shuttle tankers for the Sakhalin 2 and Varandey projects were extended or renewed, thereby adding new fixed-rate follow-on business with core clients and further strengthening Sovcomflot’s global leadership in the provision of shuttle tanker services to upstream projects in the Arctic and Sub-Arctic regions.

    Sergey Frank, President and CEO of Sovcomflot commented: “During the reporting period, SCF Group achieved solid operating and financial results despite another difficult year for the conventional tanker market.   A strong performance from the Group’s gas and offshore divisions offset continued weakness in the conventional tanker fleet over 2018 and helped drive the Group’s operating profit to USD 187.3 million. Looking forward, we remain firmly committed to growing our industrial businesses and this will be central to SCF Group strategy through to 2025. Whilst our conventional tanker fleet swung into profit in Q4 2018, it was insufficient to offset the impact of the dire tanker markets experienced by the industry as a whole in the first half of the year.  The outlook for 2019 remains positive and our performance in Q1 2019 has exceeded expectations. 
    There is industry optimism that 2H 2019 and 2020 in particular will provide better times for the tanker markets with increased demand for oil and oil products, restrained newbuilding supply and the potential for favourable disruption resulting the introduction of Marpol 2020 towards the end of the year. The Company is well positioned to take advantage of continued improvement in the conventional tanker markets”

    Evgeniy Ambrosov, Senior Executive Vice-President, Business development,   commented: “Over 2018, we have implemented a series of projects in close cooperation with our esteemed partners. The start of commercial operations of our Green Aframax tanker series, with the flagship Gagarin Prospect, was the most conspicuous amongst them. This project was implemented with our partners Shell - together we are leading the industry towards the adoption of LNG fuel. A powerful fleet of icebreaking supply and standby vessels, servicing the offshore oil & gas projects on Sakhalin island, was reinforced with another vessel of the series Evgeny Primakov, which has started its work under the 20-year time-charter agreement with Sakhalin Energy. The cooperation with Novatek has seen its further success, when the icebreaking LNGC Christophe de Margerie loaded the first LNG cargo from Yamal LNG’s third train. Our LNGCs and SCF Melampus started the open water “ship-to-ship” transfers of export cargo from Yamal LNG. We are grateful to our clients for their loyalty and the responsibility entrusted to us for the safe transportation of their cargoes - however strong the winds are and thick the ice is.”

    Igor Tonkovidov, Executive Vice-President and Chief Operating & Chief Technical Officer of Sovcomflot noted: “In 2018 the Group delivered on our promise to introduce cleaner-burning LNG as a primary fuel for our large-capacity tankers. We consider our pioneering Green Funnel initiative represents a major milestone for the tanker industry. Sovcomflot places the highest importance on safety and our philosophy that ‘Safety Comes First’ underpins all our activities. In this context, we established our Marine Operations Centre in St. Petersburg during 2018. This state-of-the-art facility represents a major breakthrough and is the first of its kind in Russia, providing heightened levels of safety and efficiency for our fleet operations, especially in regions with challenging operating conditions.”

    Nikolay Kolesnikov, Executive Vice-President, Chief Financial Officer of Sovcomflot, commented: “The Group has successfully met all its financing and refinancing needs having raised almost USD 900 million of debt capital in 2018 from domestic and international financial institutions. Our ability to access the debt capital markets reflects the robustness of SCF’s business model, underpinned by strong future contracted revenues, which stood at USD 8.4 billion at the 2018 year end. The funds raised in 2018 have addressed the Group’s mid-term financing requirements, and provide an additional liquidity cushion.”

    As at 31 December 2018, Sovcomflot’s fleet comprised 144 owned and chartered vessels (including vessels in joint ownership with third parties) amounting to 12.5 million tonnes DWT in total.

    PAO Sovcomflot (SCF Group) is one of the world's leading energy 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 fleet includes 144 vessels with a total deadweight of 12.5 million tonnes. 80 vessels have an ice class.

    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 has its headquarters in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.

2019 June 16

17:13 DC area agencies to conduct mass rescue exercise off National Harbor
16:05 Boskalis appointed as salvor for both damaged tankers in the Gulf of Oman
15:53 Fincantieri and Naval Group sign a joint venture agreement
13:47 Diana Shipping Inc. announces the sale of a Panamax dry bulk vessel, the MV Thetis
12:47 WSC unveils its hybrid patrol vessel at Seawork 2019
11:41 GasLog Partners LP announces new multi-year charter agreement with Gunvor

2019 June 15

15:44 Wight Shipyard rolls out its new windfarm support vessel concept at Seawork Int'l 2019
13:17 Malta Freeport hosts its first LNG-powered container ship
12:53 Petrobras closes the sale of TAG
11:41 USCG, local partners respond to sailing vessel aground off Magic Island
08:43 Vessel training simulation underway at Tema Port’s new Terminal 3

2019 June 14

18:05 Ole Martin Grimsrud appointed CFO of Aker Solutions
17:44 USCG Cordova FOL crew saves man stranded for three days on Montague Island
17:05 Knud E. Hansen wins two separate contracts for innovative large RoRo vessels
16:41 Hapag-Lloyd to increase rates from North East Asia to Australia
16:26 Murmansk Sea Fishing Port handled 90,300 tonnes of cargo in Jan-May’2019, down 38.7% Y-o-Y
16:05 CMA CGM announces GRR from Asia to South Africa
15:14 “K” Line receives recognition for vessel speed reduction programs in the West Coast of North America
15:00 UK maritime industry leaders debate decarbonization, digital technologies and the future of safety at the annual ABS UK National Committee meeting
14:00 China Railway Container Transport signs strategic cooperation agreement with SITC International Holdings
13:38 Container throughput of Vladivostok Sea Fishing Port in 5M’2019 up 39% YoY to 89,649 TEUs
13:09 Algoma increases its interest in in the CSL International Pool
12:41 Port of Klaipeda (Lithuania) handled 19.77 million tonnes of cargo in 5M’2019, up 8.5% Y-o-Y
12:09 Global Ship Lease announces new charter agreements
11:32 Bunker prices continue going down at the port of Saint-Petersburg, Russia (graph)
11:09 ECSA issues statement on suspected attack on two oil tankers in the Gulf of Oman
10:51 France signs up to fishing vessel training treaty
10:30 Zhatai Shipyard to let build up to 10 river ships and scrap at least two ships per year
10:07 Jan De Nul plans to reduce CO₂ emissions by 15% a year
09:49 Brent Crude futures price is up 0.64% to $61.69, Light Sweet Crude – up 0.36% to $52.47
09:30 MacGregor automated mooring solution specified for the world's first autonomous and zero-emission container ship, Yara Birkeland
09:16 Baltic Dry Index is up to 1,062 points
09:07 GTT receives an order from HHI to design the tanks of two new LNG carriers
08:53 MABUX: Bunker market this morning, June 14
08:00 Long Beach cargo volumes down 16.6% to 573,623 TEUs in May 2019
07:01 Port of Los Angeles volumes up 7.8 percent to 828,662 TEUs in May 2019
06:58 MPA publishes second edition of guides on IMO 2020

2019 June 13

18:26 Maritime Technology Framework strengthens ties between DSME and DNV GL
18:05 J-ENG presents the latest technologies about MGO mono-fuel engine (UEC-LSJ), together with UEC42LSH and LP-EGR at 29th CIMAC World Congress
17:49 Port of Gdansk delegation takes part in IAPH conference, Guangzhou
17:28 Throughput of port Kaliningrad in Jan-May’2019 fell by 18% Y-o-Y to 4.98 million tonnes
17:04 Throughput of port Vyborg in Jan-May’2019 fell by 39% Y-o-Y to 373,000 tonnes
16:45 MarineTraffic partners with exactEarth to deliver most comprehensive vessel tracking yet
16:23 Throughput of port Primorsk in Jan-May’2019 grew by 8% Y-o-Y to 24.43 million tonnes
16:04 MarineTraffic partners with satellite AIS data provider exactEarth
15:39 Freight turnover of Neva-Metal (Saint-Petersburg) in 5M’19 fell by 10% Y-o-Y to 1.18 million tonnes
14:42 Viking Line announces additional departures on Helsinki-Tallinn routes during summer season
14:21 Throughput of port Vysotsk in Jan-May'2019 climbed by 8% Y-o-Y to 8.06 million tonnes
14:03 Hunter Group chooses OSM for technical management of newbuild VLCC fleet
13:49 Palau is approved by IMO as STCW White List member state
13:48 Jotun signs agreement with Hyundai Heavy Industries for a new type of marine paint
13:32 Bunker prices continue going down at the Far East ports of Russia (graph)
13:14 J-ENG rolls out its latest engine technologies at 29th CIMAC World Congress
12:39 Port of Ust-Luga handled 45.24 million tonnes in 5M’19, up 9% Y-o-Y
12:04 Jumbo awarded transportation & installation contract for Yunlin WTG foundations offshore Taiwan
11:03 Damen Marine Components acquires WK Hydraulics
10:50 Throughput of Port St. Petersburg in Jan-May'2019 climbed by 1% Y-o-Y to 25.01 million tonnes
10:36 Oshima Shipbuilding and DNV GL sign strategic cooperation
10:26 Damen Anchor & Chain Factory inks agreement with Fendercare at Seawork
10:11 Throughput of port Helsinki (Finland) in Jan-May’19 fell by 6.5% to 6 million tonnes (table)