The new Board of Directors of JSC Novorossiysk Shipping Company (Novoship) was elected at an extraordinary shareholders’ meeting of Novoship on 28 February 2008.
Nine directors were elected to the Board, including five managers of Sovcomflot, which owns 67.13 per cent of the ordinary (voting) shares of Novoship. Those elected were: Sergey Frank, Sergey Popravko, Nikolay Kolesnikov, Vladimir Mednikov, Mikhail Suslin of Sovcomflot; three independent directors – Marlen Manasov, Managing Director of the investment company UBS Securities; Robert Sasson, an investment banker, former Head of EBRD Mission in St. Petersburg; Leonid Loza, former Novoship President; and the President of Novoship, Sergey Terekhin.
Seven members of the new Novoship Board are professionals in the maritime industry. There are four captains of ocean-going ships among the new members, and four managers with experience in running such major shipping companies as Sovcomflot, Novoship, Primorsk Shipping Company (Prisco), Far-Eastern Shipping Company (Fesco) and the Northern Shipping Company (NSC).
At the first meeting of the new Novoship Board of Directors, Sergey Frank, Sovcomflot President & CEO, was elected Chairman of the Board. Speaking after the meeting, Mr Frank emphasised that the new Board of Directors intends to guide the Novoship management in further enhancing its competitiveness, increasing the company’s capitalization and growing a leader in the seaborne transportation markets, a traditional area of specialism for Novoship. “The prime task of the Sovcomflot and Novoship management at this stage is to gain the maximum synergy from the consolidation of Russia’s two largest shipping enterprises for the benefit of their clients, their shareholders, the regional shipping community and of Russia as a maritime country. They also need to bring the Group’s corporate governance system and transparency of corporate procedures in conformity with the highest international standards,” said Mr. Frank.
History in brief:
The consolidation of Sovcomflot and Novoship was completed on 5 December 2007. This followed the transfer of the Russian Government’s controlling 50.34 per cent shareholding (67.13 per cent voting shares) in Novoship to Sovcomflot in accordance with the Presidential Decree No.784 of 20 June 2007 and the Governmental Resolution No.964-p.
On 9 January 2008 Sovcomflot launched a public offer to Novoship minority shareholders for the outstanding 36.3 million Novoship ordinary shares (equivalent to 9.66 per cent of the total ordinary shares) at a price of RUB 81.82 per share. The offer will close on 19 March 2008.
In April 2008 the consolidated financial statements of the Sovcomflot Group for 2007 (in accordance with IFRS) are to be prepared. Preliminary estimates indicate gross revenues will exceed USD 1.2 billion and time charter equivalent earnings will amount to some USD 1billion.
The book value of the Group’s consolidated assets, as of 31 December 2007, was more than USD 5 billion.
In accordance with the current shipbuilding programme, the fleet’s deadweight will grow by more than 7 per cent in 2008, particularly when the high technology LNG tankers and Arctic shuttle tankers are put into operation. By the end of 2008 Sovcomflot’s fleet will comprise 130 vessels with a total deadweight of 9.3 million tonnes. The average age of Sovcomflot’s tanker fleet is 5.9 years, which is almost half the average age of the world’s tanker fleet.
Nine directors were elected to the Board, including five managers of Sovcomflot, which owns 67.13 per cent of the ordinary (voting) shares of Novoship. Those elected were: Sergey Frank, Sergey Popravko, Nikolay Kolesnikov, Vladimir Mednikov, Mikhail Suslin of Sovcomflot; three independent directors – Marlen Manasov, Managing Director of the investment company UBS Securities; Robert Sasson, an investment banker, former Head of EBRD Mission in St. Petersburg; Leonid Loza, former Novoship President; and the President of Novoship, Sergey Terekhin.
Seven members of the new Novoship Board are professionals in the maritime industry. There are four captains of ocean-going ships among the new members, and four managers with experience in running such major shipping companies as Sovcomflot, Novoship, Primorsk Shipping Company (Prisco), Far-Eastern Shipping Company (Fesco) and the Northern Shipping Company (NSC).
At the first meeting of the new Novoship Board of Directors, Sergey Frank, Sovcomflot President & CEO, was elected Chairman of the Board. Speaking after the meeting, Mr Frank emphasised that the new Board of Directors intends to guide the Novoship management in further enhancing its competitiveness, increasing the company’s capitalization and growing a leader in the seaborne transportation markets, a traditional area of specialism for Novoship. “The prime task of the Sovcomflot and Novoship management at this stage is to gain the maximum synergy from the consolidation of Russia’s two largest shipping enterprises for the benefit of their clients, their shareholders, the regional shipping community and of Russia as a maritime country. They also need to bring the Group’s corporate governance system and transparency of corporate procedures in conformity with the highest international standards,” said Mr. Frank.
History in brief:
The consolidation of Sovcomflot and Novoship was completed on 5 December 2007. This followed the transfer of the Russian Government’s controlling 50.34 per cent shareholding (67.13 per cent voting shares) in Novoship to Sovcomflot in accordance with the Presidential Decree No.784 of 20 June 2007 and the Governmental Resolution No.964-p.
On 9 January 2008 Sovcomflot launched a public offer to Novoship minority shareholders for the outstanding 36.3 million Novoship ordinary shares (equivalent to 9.66 per cent of the total ordinary shares) at a price of RUB 81.82 per share. The offer will close on 19 March 2008.
In April 2008 the consolidated financial statements of the Sovcomflot Group for 2007 (in accordance with IFRS) are to be prepared. Preliminary estimates indicate gross revenues will exceed USD 1.2 billion and time charter equivalent earnings will amount to some USD 1billion.
The book value of the Group’s consolidated assets, as of 31 December 2007, was more than USD 5 billion.
In accordance with the current shipbuilding programme, the fleet’s deadweight will grow by more than 7 per cent in 2008, particularly when the high technology LNG tankers and Arctic shuttle tankers are put into operation. By the end of 2008 Sovcomflot’s fleet will comprise 130 vessels with a total deadweight of 9.3 million tonnes. The average age of Sovcomflot’s tanker fleet is 5.9 years, which is almost half the average age of the world’s tanker fleet.