• 2020 March 13 12:24

    Net profit of Sovcomflot in 2019 totaled $225 million versus loss 2018

    PAO Sovcomflot (SCF Group), one of the world leaders in marine energy transportation solutions, has today announced its results for the full year to 31 December 2019.

    2019 Full Year Financial Highlights (IFRS audited accounts – year to 31 December 2019)

    USD Millions

    2019

    2018

    %

    Revenue  

    1,665.2

    1,519.9

    +9.6 

    Time charter equivalent (TCE) revenue

    1,265.5

    1,074.7

    +17.8

    EBITDA*

    823.0

    580.7 

    +41.7

    Net profit (loss)

    225.4 

    (45.6) 

    -

    * Earnings before interest, tax, depreciation and amortisation calculated on an adjusted basis

    Four newbuildings delivered: three ‘Green Funnel’ LNG-fuelled Aframax crude oil tankers (Korolev Prospect, Vernadsky Prospect, Samuel Prospect) and Mikhail Lazarev, an Arctic MR shuttle tanker transporting crude oil for the Novy Port project, under a long-term contract with Gazprom Neft. All vessels are designed to the highest industry standards of safety and sustainability

    Korolev Prospect, a ‘Green Funnel’ crude oil tanker, became the first vessel to cross the entire length of the Northern Sea Route using only cleaner-burning LNG as a fuel

    Shipbuilding contracts were signed for the construction of two Aframax crude oil shuttle tankers for the Sakhalin-1 project with deliveries in early 2022 backed by ten and fifteen year period time charters

    Long-term time-charter contracts signed with NOVATEK for three next-generation LNG-fuelled MR product carriers, currently under construction at Zvezda Shipbuilding Complex

    On 24 September 2019, the Board of Directors of PAO Sovcomflot elected Sergey Frank as its new Chairman. Igor Tonkovidov was appointed as the company’s new President and Chief Executive Officer in the same month

    Sovcomflot and NOVATEK established SMART LNG LLC, a joint venture that will own and operate a fleet of LNG carriers to provide safe, year-round LNG transportation for NOVATEK’s projects

    Sovcomflot named Company of the Year at the 2019 Lloyd’s List Europe Awards.

    Sergey Frank, Chairman of the Board of Directors of Sovcomflot, said:

    “In the first year of implementation of our new strategy 2019-2025, Sovcomflot significantly exceeded the KPI targets set for 2019 and strengthened its position in the market segments that are of strategic importance for the Company, looking into the future.”

    Igor Tonkovidov, President and CEO of Sovcomflot, said:

    “Overall, 2019 was a successful year for Sovcomflot. By many measures such as net profit and EBITDA, which amounted to USD 225.4 million and USD 823 million respectively, the results achieved in 2019 are close to our historic highs.

    “The strategy approved by the Board of Directors for the period to 2025 will see us maintaining our focus on expanding the portfolio of large-scale and long-term industrial projects, many of which are of great importance for the country's economy. We will continue to place a strong emphasis on our technical capabilities and operations in challenging environments, which represent a unique competitive advantage for the Company. Successful implementation of these plans will further enhance SCF’s business stability and the sustainability of our financial results.

    “To achieve this, Sovcomflot will continue to focus on strengthening its technological leadership by developing and adopting unique engineering solutions that are required by our customers, while also setting even higher safety, efficiency and sustainability standards for the global tanker industry.”

    Evgeny Ambrosov, Senior Executive Vice President of Sovcomflot, noted:

    “In the reporting period, Sovcomflot Group continued to successfully develop long-term partnerships with key customers – leading Russian and international oil and gas companies, such as Gazprom Group, NOVATEK, Lukoil, Shell, Total, Exxon Neftegaz, Sakhalin Energy and others. These relationships are based on the ability of SCF to develop and implement efficient logistical solutions to meet the specific needs of our partners, primarily as part of long-term industrial projects, as well underpinning the consistently high level of confidence of charterers in the quality of SCF’s services.

    “Along with the active development of our project business, Sovcomflot maintains leadership in the conventional shipping of crude oil and petroleum products. SCF Group has achieved a balanced mix between its ‘project-based’ and ‘conventional’ businesses, which both ensures the sustainability of revenues and allows the Company to benefit from increased earnings in a healthy tanker freight market.”

    Sergey Popravko, Executive Vice President and Chief Operating Officer of Sovcomflot, said:

    “A significant result for Sovcomflot in 2019 was a further increase in the efficiency and quality of our fleet management, as well аs our overall productivity. We also saw improvements in our navigational safety indicators and a continuous reduction in the environmental impact of our fleet operations, in full compliance with the regulations of the International Maritime Organisation (IMO).

    “Results from the first year of successful operation of SCF's 'Green Funnel' tankers saw the use of LNG as a primary fuel enabling a significant (up to 30%) reduction of carbon dioxide (CO2) emissions to the atmosphere, which exceeded the forecasted indicators. 2019 has seen us pioneer the introduction of cleaner-burning LNG fuel for transporting crude oil in high latitudes.

    “At the same time, we continue to study the possibility of introducing other alternative technologies that have the potential to further reduce the environmental impact of our operations.”

    Nikolay Kolesnikov, Executive Vice President and Chief Financial Officer of Sovcomflot, said:

    “The business model adopted by Sovcomflot, providing for resilient financial performance, has allowed the company to maintain strong relationships with its financiers for many years. At the end of the reporting period, the pool of lenders to the Group comprised over twenty banks and financial institutions, as well as institutional investors in SCF’s unsecured Eurobonds.

    “Access to debt capital through the cycle allows the company to successfully implement strategic plans to expand its portfolio of long-term industrial contracts, which are characterised by the stability and good visibility of future cash flows and attractive financial returns. In the reporting period, Sovcomflot raised over USD 1 billion of longer-term debt capital, to finance its current investment programme and to refinance SCF’s maturing debt obligations, including its first financing under the Poseidon Principles. The company's strong performance indicators in 2019 resulted in a further strengthening of its liquidity position and significant improvement of all key credit metrics.”

    As at 31 December 2019, the company’s credit ratings were as follows: Standard & Poor's: BB+/stable;  Fitch: BB+/stable; Moody’s: Ba1/stable.

    Sovcomflot and its operations received a number of prestigious awards in 2019, including: 2019 Lloyd’s List Europe Awards where SCF was named Company of the Year; Nor-Shipping Next Generation Ship Award 2019 (for Gagarin Prospect, the inaugural ship of the pioneering ‘Green Funnel’ series of LNG-fuelled Aframax crude oil tankers); 2019 Marine Propulsion Awards in the Ship of the Year category (for Gagarin Prospect); 2019 Offshore Support Journal Awards in the Support Vessel of the Year category (for Evgeniy Primakov, an icebreaking standby vessel); Marine Money Awards in the Green Ship Finance Deal of the Year – West category (for the USD 252 million credit agreement with a consortium of foreign banks, to finance the construction of the pioneering ‘Green Funnel’ series of LNG-fuelled Aframax crude oil tankers).

    As at 31 December 2019, Sovcomflot’s fleet comprised 147 owned and chartered vessels (including vessels in joint ownership with third parties) exceeded 12.8 million tonnes DWT in total.

    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 Group’s fleet currently includes 146 vessels with a total deadweight of 12.6 million tonnes. 82 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 is headquartered in Saint Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.




2020 November 28

15:51 Turkish shipbuilder orders boiler package from Parat for NB1105
14:23 Volkswagen Group selects marine biofuel leader GoodFuels to run fossil-free car transport operations
13:18 Fincantieri inks agreement with the Yucatán Gov’t for a new shipyard
12:27 Piriou has developed 100M cable vessel
11:39 Federal Maritime Commission increases global alliances' information monitoring report requirements
10:57 Managing passenger shipping for the benefit of all stakeholders

2020 November 27

18:27 First full-flow ballast water management system to receive Chinese Flag and CCS Type Approval
18:05 CLdN adds 2nd call on Zeebrugge - Cork route
17:47 Seagoing vessels mooring at North Sea Port will now pay a single tariff for the entire cross-border port area
17:26 FESCO delivered extra heavy power equipment from Russia to Bangladesh
17:05 LR, Anemoi and SDARI join forces on rotor sail designs
16:39 Interested parties invited to submit offers on development of deepwater terminal in Świnoujście
16:14 Sea-Cargo starts new freight service via Gothenburg
15:50 Yantar shipyard delivers new trawler of Project SK-3101R
15:48 Mikki Koskinen elected as the new Chairman of Finnish Shipowners’ Association
15:36 Head of Delo Group outlined tasks for updated composition of TransContainer BoD
15:15 IHM Certification for UK flag ships subject to PSC inspection at EU ports
14:48 IADС continues partnership with organizers of Hydraulic Engineering Structures and Dredging Congress
14:14 Wilhelmsen awarded funding for Singapore 3D printing project
13:59 World Maritime University and Batumi State Maritime Academy signed MoU
13:33 Bunker prices recover in the Far East ports of Russia (graph)
13:14 Fully integrated Wärtsilä Hybrid Solution selected for new Misje Rederi bulk carriers
12:50 BW Lilac to deliver its first LNG cargo to Klaipėda LNG terminal
12:25 Russian Maritime Register of Shipping takes part in ROOGD-2020
12:01 The world’s first LPG-fuelled vessel has set sail
11:31 Port of Southampton to open new cruise terminal for 2021 season
11:07 DEME awarded the prestigious Abu Qir port project in Egypt
10:44 Main engines loaded on General Chernyakhovsky ferry being built by Rosmorport’s order
10:17 Austal Australia cuts metal on third of six cape class patrol boats for Royal Australian Navy
10:15 2020 season of shipping through Volga-Baltic locks is over
09:51 Equinor and partner reach financial close on world's biggest offshore wind farm
09:36 Baltic Dry Index as of November 27
09:31 MABUX: Bunker Market this morning, Nov 27
09:22 Oil prices decrease on uncertainty over OPEC+ deal

2020 November 26

18:31 Port of Houston is now the number one port in U.S. in terms of total waterborne tonnage
18:00 Port of Rotterdam to embark on 100 innovative pilot projects
17:51 RF Navy’s frigate Admiral Gorshkov performs tests in the White Sea
17:27 DFDS and its partners apply for EU support for development of hydrogen ferry
17:24 Rosneft conducts stratigraphic drilling on Arctic shelf
16:59 RF Navy's corvette Boykiy completed missions in the English Channel
16:27 RF State Duma approves lifting the ban on storage of agricultural chemicals in ports
16:03 MacGregor reaches OnWatch Scout milestone
15:25 APM Terminals Gijon responds to doubling of container volumes
14:58 Western Shipyard boosts its vessel repair capacity
14:33 Keppel secures contract worth about S$100 million for FPSO project
14:29 EU funds to dredge the navigation channel up to -15 meters in Klaipeda Port
14:02 BC Ferries to trial two ship service on Campbell River – Quadra Island route
13:48 Andrey Severilov elected as Chairman of FESCO BoD
13:30 The Danish Armed Forces and DFDS enter into an agreement on providing ships for the transport of military equipment
13:22 MPA invites market specialists to join its International Safety@Sea Webinar Series
13:02 Fincantieri with the fishing association “Federpesca” to revive the national fishing economy
12:24 Rosneft completed survey and design stage of the project to a port in Sever Bay
12:01 APM Terminals Apapa continues equipment investment programme
11:31 Huntington Ingalls Industries awarded contract for construction of first two Columbia-class submarine modules
11:06 Aquila Power Catamarans rolls out its redesigned sport power catamaran
11:06 Maqta Gateway and TruKKer to collaborate on digital truck booking services through “MARGO”
10:55 New Alfa Laval CM wireless condition monitor boosts process uptime while protecting plant equipment
10:26 BPA: Gov't one year spending review
10:04 Volvo Penta’s transformation for the marine commercial professional of today and tomorrow
09:50 50 vessels and up to 100 drilling units to service Vostok Oil project