• 2018 November 16 18:02

    Sovcomflot reported its results for Q3 and 9M ending 30 September 2018

    Sovcomflot (SCF Group), a world leader in energy shipping and offshore services to the oil and gas industries specializing in harsh environment work, today reported its results for the third quarter (Q3) and nine months (9M) ending 30 September 2018.

    During the reporting period, the tanker freight markets remained in a depressed state as vessel supply continued to outstrip vessel demand. Signs of a better balance have emerged more recently following longer term oil price recovery and worldwide fleet removals over 2H 2017 and 1H 2018. These factors, in part, led to the start of a recovery in freight levels in the conventional tanker fleet towards the end of Q3 2018 and in the large crude vessel segments in particular. The improvement has continued into Q4 2018 and has resulted in a healthy increase in earnings across the Group’s crude carrying vessels, an improvement that is forecast to hold steady in the near term and into Q1 2019. 

    Financial highlights for the third quarter to 30 September 2018

    USD Millions

    Q3 2018

    Q3 2017

    %

    Gross revenue (Freight and hire)

    396.4

    350.5

    +13.1

    Time-charter equivalent (TCE) revenue

    262.6

    255.2

    +2.9

    EBITDA*

    146.9

    125.4

    +17.1

    Net profit (loss)

     0.3

    (22.0)

    -

    * EBITDA calculated on adjusted basis as operating profit before depreciation and amortisation adjusted by gain / (loss) on sale of subsidiaries, gain/(loss) on sale of equity-accounted investments, other operating revenues / (expenses) and interest income.

    Financial highlights for the nine months to 30 September 2018 

    USD Millions

    9M 2018

    9M 2017

    %

    Gross revenue (Freight and hire)

    1,106.5

    1,060.7

    +4.3

    Time-charter equivalent (TCE) revenue

    774.0

    786.0

    -1.5

    EBITDA

    414.6

    408.3

    +1.5

    Net profit (loss)

    Including non-cash vessel value impairment provision

    (57.5)

    (45.9)

    (6.8)

    -

    ** The net loss recorded for the nine month period was USD 57.5 million (9M 2017: USD 6.8 million net loss). This includes a non-cash vessel value impairment provision of USD 45.9 million, in the first nine months of 2018, relating to some older crude oil and oil product tankers (reflecting a reassessment of their longer-term value in use, given the historic freight market lows reached earlier in 2018).


    Operational highlights Q3/9M 2018

    In February, a new high-tech multifunctional icebreaking platform supply vessel, Yevgeny Primakov, entered service under a 20-year time-charter agreement with Sakhalin Energy Investment Company Ltd.

    In June, Sovcomflot and PAO Novatek signed a strategic partnership agreement to develop together logistical support for Yamal LNG, Arctic LNG-2 and other projects of NOVATEK.

    In July Gagarin Prospect, the world’s first Aframax tanker to use cleaner burning LNG as her primary fuel, entered the fleet under a long-term time-charter with Shell. This vessel is pioneering the use of Marine LNG for large capacity tankers, especially those not tied to fixed routes or set timetables.

    In August, the Group’s LNGC Pskov loaded the first cargo of LNG produced at the Yamal LNG’s Train 2 in Northern Russia.

    Subsequent to the period, in October, Lomonosov Prospect, the Group’s second Green Funnel Aframax tanker completed its maiden voyage along the Northern Sea Route (NSR) carrying clean petroleum products. During the voyage, the crew successfully tested the operation of the ship’s engines and fuel system controls using LNG, as well as the operation of navigation equipment and machinery in ice conditions at sub-zero temperatures.

    Commenting on the Group’s results Sergey Frank, President & CEO of PAO Sovcomflot, said:

    “The Group returned to positive numbers in Q3 2018 with continued growth in SCF’s industrial, fixed income businesses. The Offshore and Gas divisional performances remain at the core of the Group’s profitability and earnings performance, contributing now around 60% of Group’s net revenues. The green shoots of recovery in the conventional tanker market and in the larger crude sector in particular, are encouraging for Q4 2018 and may bring a welcome earnings boost on top of that provided by the Gas and Offshore divisions. Of particular note, we achieved a key milestone in our drive to innovate within the tanker industry with the delivery and the first LNG fuelling of Gagarin Prospect in partnership with Shell and the project is an excellent example of SCF partnering its client to harness technological innovation to provide cleaner, safer and more efficient maritime transportation services.”

    Nikolay Kolesnikov, Sovcomflot Senior Executive Officer & Chief Financial Officer, said:

    “During the nine month period, the Group completed financing and refinancing transactions amounting to USD 424.0 million in total including a USD 106.0 million long-term facility with Sberbank, to finance an Arctic shuttle tanker and a USD 252.0 million long-term facility with international banks to finance six Green Funnel Aframax tankers. SCF’s long-term offshore and gas businesses increased their TCE revenues by 17.7 per cent and 14.5 per cent respectively in the nine month period, compared with the first nine months of 2017. The company continues to enjoy an exceptionally strong pipeline of future contracted revenues amounting to a total of USD 7.7 billion.”

    Fleet summary

    As at 30 September 2018, the Group’s fleet (including vessels owned, chartered-in, and in joint ownership with third parties) comprised 147 vessels with a combined deadweight of approximately 12.7 million tonnes.

    SCF Press Service

    PAO Sovcomflot (SCF Group) is one of the world's leading 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 own and chartered fleet includes 147 vessels with a total deadweight of 12.7 million tonnes, of which 80 vessels have an ice class. 8 vessels are under construction.

    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.




2019 February 20

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17:52 VNIIR-Progress St. Petersburg supplies electrical equipment for Atomflot icebreaker
17:28 Documents on concession model for Taman dry cargo area project to be submitted to RF Govt in March 2019
17:04 Cammell Laird stages ‘float-off’ for new £10m ferry for Red Funnel
16:46 VTMS, AIS and Pilotage Service on the Northern Sea Route to remain under Rosmorport’s control
16:25 NOVATEK eyes arranging LNG bunkering in Sabetta
16:04 Maersk enhances Asia-Europe network to further improve schedule reliability
15:43 Decision made on transfer of FSUE Hydrographic Company to Rosatom Corporation
15:21 Euronav sells LR1 Genmar Сompatriot
14:54 SIA Extron Baltic receives award for rapid growth in the Port of Riga
14:30 NOVATEK announces consolidated IFRS results for year ended 31 December 2018
14:02 COSCO SHIPPING Lines and Bolloré Transport & Logistics sign a MoU to develop new synergies
13:39 ABP partners with Grimsby-based Maritime Academy
13:15 Toll unveils new Australian ship
12:48 Increasing numbers of cruise ships making their maiden calls to Southampton
12:22 Transport Week 2019 welcomes Kalmar among its sponsors
12:01 First diesel-electric Damen Shoalbuster 3514 DP2, IMO Tier 3 ordered by Herman Sr
11:50 20 vessels escorted by icebreakers in eastern part of Gulf of Finland during 24 hours on February 19-20
11:33 DP World acquires leading European transportation and logistics provider P&O Ferries
11:09 Port of Oakland to get three new cranes
10:47 Brent Crude futures price is down 0.3% to $66.25, Light Sweet Crude – down 0.02% to $56.44
10:35 2nd Hydraulic Engineering Structures and Dredging Congress kicks off in Moscow
10:18 Baltic Dry Index is down to 635 points
10:00 IMO Secretary-General urges all aboard for GHG reduction
09:34 Baltiysky Zavod completed shaping ice belt of nuclear-powered icebreaker Ural of Project 22220
09:25 Keppel delivers jackup rig to Grupo R on sale and leaseback deal
09:15 FESCO new vessel starts working on a regular service among the ports of China and Far East of Russia

2019 February 19

18:03 San Vicente Terminal Internacional receives two state-of-the-art cranes to enhance operations
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17:03 Jan De Nul's PDC and Bangladesh PPA to pick engineer services provider for Payra dredging project
16:29 TMA Logistics, CTU and VCL join forces to establish Amsterdam-Utrecht-Rotterdam-Corridor
16:21 NIBULON shipbuilders finish constructing a series of POSS-115 Project tugs
16:03 MOL conducts underwater drone demonstration test for vessel bottom inspection
15:25 Wärtsilä’s propeller cap EnergoProFin listed in EcoAction Program
15:02 ICTSI's Matadi Gateway Terminal unlocks shipping system benefits
14:40 2nd conference on transportation of dangerous cargoes to address application of IMDG Code and ADR Agreement in Russia
14:02 Havyard to deliver ship design for further two cargo vessels for Royal Arctic Line
13:33 Ecochlor announces BWMS retrofit contract with Alaskan Tanker Company
13:02 GTT notified by Samsung Heavy Industries for the tank design of a new LNG carrier for Navigare
12:30 Gas4Sea partners and Equinor signed an LNG bunkering agreement
12:24 Social allocations of Multipurpose Reloading Complex grew by 22% YoY to RUB 3.8 million in 2018
12:01 Rail traffic at the Port of Gothenburg up to 398,000 TEUs in 2018
11:43 International best practices are introduced at ASCO to protect sailors health
11:41 Port of Hamburg sets record for seaport-hinterland rail traffic in 2018
11:39 IMO’s Sub-Committee on Pollution Prevention and Response meets this week
11:18 Concordia Damen celebrates naming of innovative Sendo Liner
11:15 ASCO hosted a training course for instructors
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10:22 ABP bolsters business with paper company joining Port of Hull
09:58 Brent Crude futures price is down 0.42% to $66.22, Light Sweet Crude – down 0.38% to $56.19
09:40 BIMCO demands 4th IMO GHG Study based on realistic economic growth
09:19 Baltic Dry Index is up to 643 points

2019 February 18

18:06 Algoma announces the Algoma Conveyor is headed for Canada
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15:31 PPR 6 preview: IBIA working for sensible 2020 solutions at IMO meeting