• 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.




2018 December 16

16:09 Navios Acquisition completes acquisition of Navios Midstream
15:23 Thun Tankers names environmentally adapted tanker Thun Evolve
13:21 Traxens trials IoT network in port environment for first time, at MSC Terminal Valencia
12:32 Executives must watch both sea and air amid trade war tensions, warns Xeneta
10:55 CMA CGM announces FAK rates from ISC to North Europe and the Mediterranean
10:11 PGNiG receives third spot delivery of US-sourced LNG at Świnoujście

2018 December 15

16:23 MOL Passenger Line receives award for outstanding performance in 'Cruise of the Year 2018'
14:53 CMA CGM to implement GRR for India East Coast-West Africa trade
13:51 CMA CGM announces LSS on services from / to China, Hong Kong and Taiwan
12:44 NYK Cruises receives Grand Prix Award for 2018 World Cruise
11:27 TT-Line places order for RoPax "green" ferry with China's Jiangsu Jinling Shipyard

2018 December 14

18:17 Hapag-Lloyd to increase rates from East Asia to Mexico, Central America, West Coast of South America, Caribbean & Panama
17:48 Petersburg Oil Terminal puts into operation its emergency response team
17:33 Vinalines to open container shipping centre next week
17:30 Fairway adjustment will simplify Elbe traffic control already next year
17:27 Final cruise ship for the year calls to the Port of Gothenburg
17:23 The MV Magda joins the Klaveness Bulkhandling pool
17:16 India’s containerised export up 10% in the third quarter of 2018
17:13 FSL Trust announces newbuilding agreement for the construction of two LR2 product tankers
17:13 Havyard project with Havila Kystruten on hydrogen-powered coastal route operations to receive over NOK 100 million in funding from Pilot-E
16:24 World Fuel Services expands bunker operations in US leading up to 2020
15:57 IMO held training workshops in Cameroon Single Window for Foreign Trade Transactions
14:49 Onezhsky Shipyard lays down self-propelled hopper barge of Project HB600
14:08 Irish Continental Group plc takes delivery of cruise ferry W.B.Yeats
13:55 WMU takes part in Ocean Literacy Conference
13:31 First in industry ADNOC co-loads LPG and propylene onto same vessel in Ruwais
13:10 WMU hosted round table discussion regarding key challenges facing IMO
12:53 Bunker market at the Port of Saint-Petersburg, Russia shows mixed price movements (graph)
12:32 Nordic American Offshore secures contract for its PSV NAO Viking
12:11 Rosrybolovstvo supports 2nd Dredging and Hydraulic Engineering Structures Congress
11:50 Association of Commercial Sea Ports celebrates its 30th anniversary
11:24 Gazprom and Itochu sign MoU under Baltic LNG project
11:06 Scorpio Bulkers announces time charter-out agreement
10:48 Domestic ferry safety exercise conducted in Indonesia
10:25 IMO holds training for managing insecurity in west Indian Ocean and Gulf of Aden
10:06 EC adds six new yards to its ‘European List of ship recycling facilities’
09:47 Brent Crude futures price down 0.61% to $61.05, Light Sweet Crude – down 0.4% to $52.37
09:25 GTT notified by HSHI for the tank design of two new LNG carriers for CMM
09:18 Baltic Dry Index is up to 1,365 points
08:06 Fincantieri publishes its Sustainability Plan 2018-2022
07:14 Port of Long Beach cargo volume up to 621,835 TEU in November 2018
06:09 Mitsubishi Shipbuilding holds christening ceremony for LPG carrier "LAUREL PRIME"

2018 December 13

18:43 Coal exports via Rosterminalugol hit 19-millionth tonne mark
18:28 Port of Kaliningrad throughput in Jan-Nov rose 4% to nearly 13 million tonnes
18:25 Tideway completes installation of longest AC offshore wind export cable at Hornsea One in the UK
17:49 Hapag-Lloyd to cancel calls at Port of Bremerhaven
17:25 Building of Johan Sverdrup Phase II begins
17:19 Port of Vyborg 11-month cargo volumes soar 24% to 1.72 million tonnes
17:13 Seabridge first in Belgium to receive the SCA certificate
17:08 Jan De Nul cleans up polluted beaches along the coast in southern France
17:07 Bunker fuel prices at Far Eastern ports close the week lower
17:00 Murmansk Region will improve water safety regulations – Marina Kovtun
16:47 Port of Vysotsk cargo volume in Jan-Nov rises 6% to 16.86 million tonnes
16:36 Maersk Broker Bulk Chartering and NAODAN Chartering
16:30 Murmansk Region Governor is a member of revised State Commission for Arctic Development Issues
16:26 YILPORT Holding wins Port Operator Award at Lloyd’s List Global Awards
16:03 Rosmorport releases RFPs for design of an DF 12/14MW icebreaker
15:49 Jotun and Kansai Paint build relationship to meet marine and protective demand
15:46 Baltic Sea Ports Authority icebreakers assist merchant vessels in the Gulf of Finland
15:21 Containerships receives its first LNG-powered container vessel