In 2007, net profit of Sovcomflot OJSC under International Accounting Standard grew by 30.8%, year-on-year, to $470.8 million, the company reports. The gain on the sale of assets (vessels older than 15 years) amounted to $120.8 million. According to the Group’s audited consolidated financial statement its gross revenue (including Novoship results) for 2007 reached $1.24 billion (16.1 per cent increase on the comparable figure for 2006). Time charter equivalent revenue amounted to $976.0 million (13.7 per cent increase), EBITDA - $639.5 million (9.5 per cent increase).
Balance value of Sovcomflot assets is $5.3 billion. There were 32 new vessels on order, at the year end, representing 2.8 million tonnes deadweight. The average age of vessel in the Sovcomflot Group tanker fleet is around six years (against 12 years of average world age).
The Board of Directors discussed the proposals as regards distribution of profit and the size of dividends for 2007 prepared on the basis of the existing Provision on dividend policy of Sovcomflot. The Provision covering the period from 2007 till 2009 was worked out in accordance the Government’s Resolution No.774-r dated 29 May 2006 and was approved at the BOD meeting in September 2007. Sovcomflot’s dividend policy has been developed with reference to the necessity of reinvesting a proportion of the company’s profits into new projects in off-shore oil and gas development and LNG transportation.