• 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 May 22

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17:38 The University of Calabria and Finсantieri ink training agreement
17:05 CMA CGM PAD-Service delivers first Zespri kiwifruits to the port of Zeebrugge
16:44 CMA CGM announces GRR from Asia to South Africa
16:05 Jinling Shipyard in China orders 4 × MAN 51/60DF engines for Baltic RoPax newbuilding
15:31 Throughput of port Helsinki (Finland) in Jan-Apr’19 fell by 3.5% to 3.89 million tonnes (table)
15:09 Rob Grool appointed new CEO at ZEABORN Ship Management
14:45 CMA CGM to upgrade its EUROSAL XL service between North Europe, the Caribbean and South America West Coast
14:29 InterMoor wins 2 mooring installation contracts from COOEC
14:04 Comprehensive drill held at CPC Marine Terminal
13:28 Astrakhan branch of Ship Repair Center ‘Zvezdochka’ launches rescue towboat SB-427 for RF Defence Ministry
13:09 DOF, KONGSBERG, SINTEF Ocean and NORCE join forces to deliver ‘Intelligent Efficiency’ for offshore operations
12:52 Gazprom Neft develops partnerships with leading cruise operators
12:27 New standard Cyber Security Clause agreed by BIMCO’s Documentary Committee
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11:44 ESPS Navarra provides maritime security training in Seychelles
11:09 Hamburg Süd christens “Polar Ecuador” in Antwerp
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10:08 Austal partners with Fred. Olsen on next generation MARINELINK Smart technology rollout
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09:37 WesCom Signal and Rescue showcases its commitment to safety training at Nor-Shipping 2019
09:20 Brent Crude futures price is down 0.62% to $71.73, Light Sweet Crude – down 0.82% to $62.61
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08:53 MABUX: Bunker market this morning, May 22
08:08 Ocean Yield takes delivery of two modern Ultramax dry bulk vessels with 11-year charters

2019 May 21

18:33 Maersk to charter 13 new feeder ships powered by conventional fuel from 2021
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18:04 GTT notified by Samsung Heavy Industries for the tank design of a new LNG carrier for Nisshin Shipping
17:48 Throughput of port Vysotsk in Jan-Apr'2019 climbed by 7% Y-o-Y to 6.65 million tonnes
17:25 Bunker prices still show no considerable changes at the Far East ports of Russia (graph)
17:19 ABB to enable world’s first hydrogen-powered river vessel
17:04 Port of Zeebrugge sets new record with maiden call of OOCL United Kingdom
16:42 Sredne-Nevsky Shipyard lays down Pioner-M, research ship of Project 25700
16:19 USCG host workshop to discuss safe operation of commercial passenger vessels
16:04 IMO issues additional guidance for sulphur 2020 implementation
15:33 UN agency pushes forward on shipping emissions reduction
15:19 Nevsky Shipyard delivers Nevsky Shipyard second vessel in a series of five dry cargo vessel of project RSD59
15:03 Panama Canal announces enhancements to its Green Connection Environmental Recognition Program
14:27 DSD sells its ferry and expressboat company Norled
14:06 Throughput of port Primorsk in Jan-Apr’2019 grew by 5% Y-o-Y to 18.95 million tonnes
14:03 MOL and Weathernews release of FOCUS Project part I 'Fleet Viewer' application
13:44 Port of Hamburg posts Q1 2019 results
13:41 Czech and Polish officials visit the Port of Gdansk to promote trade between the countries
13:14 Multipurpose Reloading Complex boosts investments in environment protection 15 times to RUB 8 million
12:49 Port of Ust-Luga handled 35.55 million tonnes in 4M’19, up 8% Y-o-Y
12:25 Throughput of Port St. Petersburg in Jan-Apr'2019 grew by 2% Y-o-Y to 19.67 million tonnes
12:02 IAPH Port Planning and Development Committee published a report “Autonomous Vehicles’ Impact on Port Infrastructure Requirements ”
11:28 Port of Kiel welcomes “Aidaprima” for its maiden call
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08:05 MABUX: Bunker market this morning, May 21

2019 May 20

18:35 First MAN dual-fuel, diesel-mechanical propulsion package bound for LNG-powered ferry
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