• Home
  • News
  • Sovcomflot’s net profit increased by over 18 per cent in 2020
  • 2021 March 15 11:34

    Sovcomflot’s net profit increased by over 18 per cent in 2020

    PAO Sovcomflot (SCF Group, the Company; MOEX: FLOT), a global leader in marine energy transportation services, releases its Consolidated Financial Statements for the period ending 31 December 2020.


    For 12 months ending 31 December 2020, SCF Group’s time-charter equivalent (TCE) revenue rose by 6.7 per cent year to year to USD 1,350.6 mln. EBITDA was up 9.8 per cent to USD 903.4 mln. EBITDA margin improved 1.9 pp to 66.9 per cent. Net profit increased by 18.4 per cent to USD 266.9 mln. Positive trend was driven by continued growth of the industrial business segments, as well as a strong performance of the conventional tanker fleet in the first half of the year. 

    SCF Group’s industrial business portfolio, comprising of gas transportation (LNG and LPG vessels) and harsh environment offshore services (shuttle tankers and ice-breaking supply vessels) accounted for a half of SCF Group TCE revenue in 2020 and continues to provide a long-term fixed income revenue stream.

    Industrial business segments contributed USD 681.1 mln to 12M 2020 TCE revenue and USD 179.8 mln to Q4 2020, delivering 6.6 per cent YoY growth and a 4.1 per cent increase compared to Q4 2019. Gas transportation business grew with the addition of two new LNG carriers employed in February and September 2020 under long-term contracts with energy majors Shell and Total. 

    12M 2020 NEVT (Net Earnings from Vessels’ Trading ) in the industrial business segment grew by 5.4 per cent to USD 545.4 mln and NEVT margin remained at 80 per cent. In Q4 2020 NEVT increased to USD 141.9 mln, up 5.4 per cent YoY and 18.3 per cent QoQ.

    As at 31 December 2020, the contract backlog  has rose to USD 24 bn compared with USD 10 bn as at 31 December 2019. 

    SCF Group’s conventional tanker business (crude and oil products transportation business segments) contributed 50% to 2020 TCE revenue:

    12M 2020 conventional tanker business increased by 9.9 per cent to USD 626.4 mln on the back of strong freight market dynamics in the first half of 2020. In the third quarter of 2020 the market started to decline due to seasonality and COVID-19 pandemic-driven impact on demand for oil and oil products.

    Q4 2020 performance of the conventional tanker business came under strong negative pressure which resulted in a revenue decline of 53.0 per cent YoY and 22.2 per cent QoQ to USD 95.4 mln reflecting not only the continued negative impact of the Covid-19 pandemic on tanker freight market dynamics but also the strong performance in Q4 2019. 

    Amidst tanker freight market volatility SCF continues to apply a balanced chartering policy to provide resilience through the freight cycle. Entering Q4 2020, time-charter contract coverage of the Group’s conventional tanker fleet was increased to about 62 per cent of total segment revenue.

    12M2020 NEVT in conventional tanker business reached USD 414.4 mln, up 15.9 per cent YoY with NEVT margin at 66 per cent.



    SCF Group continued to grow its long-term industrial business portfolio, comprising of gas transportation (LNG and LPG vessels) and harsh environment offshore services (shuttle tankers and ice-breaking supply vessels) with focus on implementation of most advanced “green” technologies. SCF added two vessels to its fleet over the course of 2020 and operated a fleet of 44 industrial vessels as of 31 December 2020.

    As at 31 December 2020, the contract backlog has reached USD 24 bn compared with USD 10 bn as at 31 December 2019.

    During 2020, the Group focused strongly on growing its gas transportation business which was reflected in a healthy portfolio of new contracts:

    Over 2020, SCF Group has, either directly or through its 50 per cent owned SMART LNG JV with NOVATEK, concluded time charter contracts for 17 icebreaking ARC7 LNG carriers for the Arctic LNG 2 Project. 14 of these vessels’ contracts were structured through SMART LNG and a further 3 independently by SCF. Combined, these 17 time charters add approximately USD 14 bn tothe contract backlog attributable to SCF Group.

    In February and September 2020, SCF Group took delivery of two next-generation 174,000-cbm Atlanticmax LNG carriers, SCF La Perouse and SCF Barents, both chartered to energy majors, Total and Shell, under long-term time-charter contracts. The third sister ship, SCF Timmerman, which is chartered also to Shell, was delivered and began its operations in January 2021. This series incorporate the latest technologies in terms of safety, environmental protection, and energy efficiency, with their fuel consumption substantially reduced compared to the preceding generations of LNG carriers.

    After reporting date events:

    In January 2021, SCF and Total concluded a long-term time charter agreement for a newbuilding 174,000-cbm Atlanticmax LNG carrier with options for up to a further two vessels. The new LNG carrier will be the latest in a series of three sister ships (SCF Timmerman, SCF Barents and SCF La Perouse) previously delivered to SCF in 2020-2021 and employed under comparable contract terms. Delivery of the vessel is scheduled for Q3 2023.

    Unique voyage of SCF’s LNG carrier Christophe de Margerie expanded the navigation window in the eastern part of the Russian Arctic. In January-February 2021, SCF’s LNG carrier Christophe de Margerie completed a round voyage between Sabetta (Ruissia) and Jiangsu (China) using the Northern Sea Route (“NSR”). For the first time in history, a large-capacity cargo vessel crossed the eastern sector of the NSR in February (transit navigation along this segment traditionally ends in November and only resumes again in July).


    The tanker markets have been volatile through the year reflecting oil price dynamics and fundamental oil supply/demand factors. After reaching record highs in the first half of 2020, the tanker markets came under pressure in Q3 2020 as a result of low oil consumption in the Northern hemisphere. In addition, this seasonal downswing was further amplified by a slowdown in demand for oil products on the back of the COVID-19 pandemic, coupled with producers simultaneously cutting oil supply to support prices. Spot tanker freight weakness persisted into Q4 2020.

    With the tanker newbuilding order book remaining at historic lows management considers the conventional tanker sector to be well positioned for earnings recovery and that freight rates will respond positively to any increase in the refining output of oil products and the return of crude production and shipping volumes to pre-pandemic levels.



    In October 2020, SCF Group conducted an initial public offering of 408,296,691 newly issued ordinary shares of a nominal value of RUB 1 each, at a price of RUB 105 per ordinary share and listed them on the Moscow Exchange (ticker: FLOT). The total net proceeds of the IPO, after expenses and stabilisation-related buy-back, are RUB 38 bn (equivalent to USD 480 mln as of the date of issue). The free float of SCF Group shares amounts to 15.6 per cent, and the Russian Federation retains an 82.8 per cent stake. The proceeds of the IPO are being utilised for investments in new assets, with a focus on industrial projects, decarbonisation and further deleveraging.


    In November 2020, the Group refinanced maturing loan obligations of USD 67.3 mln with existing lenders, and further raised a USD 155.0 mln, up to eight years project finance facility, for its JV companies with equity partners NYK and Samudera, established to own and operate two LNG carriers, servicing BP-led Tangguh LNG project in Indonesia.

    Two loan agreements were signed in November and December 2020 for refinancing existing loans for 9 LR vessels in joint ownership with Glencore, with total amount of USD 207.3 mln.

    SCF credit ratings were affirmed in May-July 2020 at their current levels by Fitch Ratings (BB+/stable), by Moody’s (Ba1/stable), and by S&P (BB+/positive (rating outlook changed from stable).


    Dividends for the 2019 year of RUB 7,181.0 mln (equivalent to USD 96.8 mln), were declared and paid in August 2020.

    SCF targets paying annual dividends of 50 per cent of its IFRS net profit, and, reflecting on the strong tanker market performance in first half 2020, reconfirms its dividend guidance for the year ended 31 December 2020 of USD 225 mln, subject to the Board of Directors and shareholders’ approval.

    Commenting on the 12M 2020 results, Igor Tonkovidov, President and CEO of SCF Group, said:

    “2020 proved to be a challenging year without precedence for the shipping industry in terms of operational restrictions. The COVID-19 pandemic has changed sanitary rules and closed borders in many areas of our fleet’s operation but we have met these challenges and we have sustained the efficiency of fleet operations and provided uninterrupted services to our customers. We are grateful to our crews and shore personnel, whose health and safety was our prime focus.

    “With swings in global oil demand causing extreme volatility across energy markets, SCF Group has demonstrated resilience to such turbulence and has produced further increase in its key operational and financial metrics.

    “SCF Group continues to implement SCF-2025 strategy and with the proceeds from the recent IPO will grow further focusing on higher value-added segments, “green” technologies and advanced engineering solutions.”

    Nikolay Kolesnikov, CFO of SCF Group, added:

    “In 2020 SCF Group demonstrated strong financial performance achieving a Company record EBITDA of USD 903.4 mln. October 2020 marked an important milestone in SCF history as the Company accessed public equity capital markets and raised over USD 500 mln in a landmark IPO with its shares now listed on the Moscow Exchange. The recapitalization resulted in a strengthening the balance sheet and the financial position of the Group, with net debt to EBITDA ratio falling to 2.6 times. The Company has sufficient investment capacity to undertake large scale projects and to pursue further growth in its core strategic segments.”

    i  NEVT (Net Earnings from Vessels’ Trading) calculated as time charter equivalent revenue less vessels’ running costs and charter hire payments or company’s EBITDA before distribution of SGA expenses.

    ii Contract backlog - is the total amount receivable by the Group under the Group’s currently outstanding time-charter agreements, including arising from the Group’s share in the joint ventures. It is presented for the total term of such agreements, in each case excluding extension options. It is based on the applicable time-charter-equivalent rate and management’s estimate of the total trading days in the period for which it is presented (calculated as the total number of days for which the vessel is in possession of the owner less any scheduled or unscheduled maintenance or repairs during such period). The calculation of contract backlog (an operational measure) involves management judgment, and is subject to a number of risks and uncertainties.


    USD mln

     9 мес.  2020 

    9 мес. 2019 






    Time charter equivalent (TCE) revenues




    Vessels’ running costs




    Net earnings from vessels trading




    Net other operating revenue




    Depreciation, amortization and impairment




    General and administrative expenses




    Operating profit




    Financing costs




    Profit before income taxes




    Income tax expense




    Profit/loss for the period












    Cash and deposits




    Book value of equity




    Net debt




    Net debt/ EBITDA



    Sovcomflot (SCF Group) is one of the world's leading marine energy transportation companies, specialising in the transportation of liquefied gas, crude oil, and petroleum products, as well as the servicing of offshore upstream energy production. The Group’s fleet comprises 145 vessels with a total deadweight of 12.6 million tonnes, including vessels owned through joint ventures. More than 80 vessels have an ice class.

    SCF 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 Group is headquartered in St. Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.

2021 October 20

12:52 Japanese company Kubota chooses port of Rotterdam for Northern European distribution
12:39 Crowley participates in Saildrone Inc’s $100M Series C round to advance ocean intelligence products
12:02 Global Ports terminal In Helsinki increases number of container services
11:54 Port Houston container volumes up 11% to 281,500 TEUs in September 2021
11:40 Sibanthracite Group acknowledged as best supplier of coal to China for second consecutive year
11:16 MPA and DMU signed MoU to drive talent and academic exchange in the maritime sector
10:51 Mitsubishi Shipbuilding successfully separates and captures CO2 from exhaust gas in world’s first marine-based CO2 capture system project
10:28 Modernization of border checkpoint completed in Kavkaz seaport
10:06 RF President gives instructions on permanent environmental monitoring in areas of handling dry bulk cargo and cargo emitting dust
09:45 MABUX: No firm price trend on Bunker market on Oct 20
09:35 Crude oil prices decrease on US reserves growth
09:19 Baltic Dry Index as of October 19

2021 October 19

18:24 Ocean Yield ASA sells two LR2 tankers
17:44 Klaveness Combination Carriers sells a 21-years old CABU vessel
17:22 Oboronlogistics delivers cargo for the construction of a cultural cluster in Kaliningrad
16:58 North Sea Port, Zeeland Regional Safety Board and Central Fire Response Zone join forces for cross-border incident response in the port area
16:35 European shipowners support the uptake of clean fuels but fear FuelEU may become missed opportunity due to enforcement loopholes - ECSA
16:20 9M’2020 throughput of Taganrog Sea Commercial Port grew by 6% Y-o-Y
16:05 Fuelling the Industry: LNG as a fuel and its infrastructure at the 8th International Congress
16:04 Empire Offshore Wind selects Vestas as its preferred supplier for wind turbine generators for Empire Wind I and Empire Wind II
15:41 The decarbonization strategy likely is now the best business strategy for shipowners - ABS
15:13 Bollinger celebrates commissioning of 45th Fast Response Cutter USCGC Emlen Tunnel
14:51 RF Government and Rosatom instructed to organize regular transportation of transit cargo by NSR
14:30 Port of Rotterdam throughput rises substantially again in Q3 2021
14:03 Valenciaport throughput up 8.33% to 63.46 mln tonnes in Jan-Sept 2021
14:02 Ice restrictions in Port of Sabetta basin to be effective as of Oct 25
13:39 TGE Marine announces the successful gas trail of LNG bunker vessel ´Dmitry Mendeleev´
13:08 Port of Antwerp throughput up by 4.8% to 179.1% mln tonnes in Jan-Sept 2021
12:54 Cargo traffic via Khabarovsk Territory ports rose by 3% in 9M’21
12:33 Vitol’s V-Bunkers receives green ship awards from Maritime Port Authority of Singapore
12:15 The Methanol Institute welcomes the European Union’s package of proposals Fit for 55
11:36 Volga Shipping announces completion of three tankers conversion project
10:46 MABUX: Bunker prices may demonstrate multidirectional changes on Oct 19
10:11 Russian Gas Society supports 5th LNG Fleet, LNG Bunkering and Alternatives conference
10:09 Berenberg expands debt fund portfolio with two new multi-investor funds
09:46 Baltic Dry Index as of October 18
09:25 Crude oil prices rise on crisis anticipation
09:13 Roxtec selects Sustainable Marine Fuels

2021 October 18

18:07 OneOcean Group brings voyage optimisation solutions to Marlink Partner Programme
17:53 NOVATEK held its first Arctic LNG Projects Shipowners Conference
17:49 MOL tabletop drill prepares for serious marine accident
17:29 Over 40 ships and boats of RF Navy's Black Sea Fleet took part in large-scale exercise at Opuk training ground in Crimea
16:52 Icebreaker Kapitan Khlebnikov to help deliver new components for the Vostok Station in the Antarctic
16:16 Throughput of Russian seaports in 9M’2021 climbed by 1.7% (detalization)
15:48 Four industry focused educational institutions to take part in 5th LNG Fleet, LNG Bunkering and Alternatives conference
15:25 Baltiysky Zavod shipyard casts forth one-piece propeller for Project MR-50 product tanker
15:03 Nemport orders fleet of Konecranes Noell RTGs
14:13 Average spot market price for Russian M100 product rose to RUB 29,186 pmt
13:51 MOL, MAN ES and MES-M sign MoU aiming to order ammonia fueled main engine for ships
13:42 National Chamber of Engineers supports 5th LNG Fleet, LNG Bunkering and Alternatives conference as its Media Partner
13:00 Port of Ventspils throughput in January-September 2021 fell by 14% YoY
12:40 The Port of València will install a hydrogen supply station in January
12:36 Port of Helsinki throughput in January-September 2021 rose by 7.9% YoY
12:14 Port of HaminaKotka cargo turnover in 9M’2021 fell by 2.1%
11:29 Container throughput of Hong Kong port (China) in January-September 2021 rose by 0.1%
10:57 APM Terminals appoints new Head of Decarbonisation
10:48 Port of Liepaja throughput in 9M’2021 climbed by 8% Y-o-Y
10:25 Global Ports’ Consolidated Marine Container Throughput increased by 4.0% y-o-y in 9m 2021
09:53 MABUX: Bunker prices may rise on Oct 18
09:46 Northern Sea Route cargo traffic rose by 4.5%