• 2019 May 15 15:54

    Net profit of Sovcomflot in 1Q’2019 totaled $70.1 million versus loss of $16.1 million in 1Q’2018

    PAO Sovcomflot (SCF Group), a world leader in energy shipping and offshore services to the oil and gas industry, today reported its results for the first quarter (Q1) ended 31 March 2019.

    Financial highlights for Q1 2019

    USD million

    Q1 2019

    Q1 2018

    %

    Gross revenue

    410.7

    345.4

    +18.9

    Time charter equivalent (TCE) revenue

    313.9

    248.9

    +26.1

    EBITDA*

    206.8

    127.3

    +62.5

    Net profit (loss)

    70.1

    (16.1)

    -

    Korolev Prospect and Vernadsky Prospect delivered - the fourth and fifth vessels in a pioneering ‘Green Funnel’ series of six LNG-fuelled 114,000 DWT Aframax tankers ordered by Sovcomflot. Compliant with new international conventions on emission controls, applicable from 2020, the tankers also conform fully with environmental and safety standards for ships operating in ECA-controlled areas (including the Baltic and North Sea basins).

    In March, the Group celebrated the 10th anniversary of the start of LNG shipments from the Sakhalin-2 project. Over the past decade, Grand Aniva and her sister ship Grand Elena have successfully completed over 300 voyages, delivering some 43.5 million cubic metres of LNG to Asian customers.

    Yevgeny Primakov, an icebreaking standby vessel employed under long-term time-charter with Sakhalin Energy, was awarded ‘2019 Support Vessel of the Year’ by Offshore Support Journal.

    Gagarin Prospect and Lomonosov Prospect, the world's first LNG-fuelled Aframax tankers, received Green Award certificates, a quality mark for vessels that significantly surpass Convention requirements related to environmental protection.

    Sovcomflot received the annual Marine Money 'Deal of the Year' award, in the category Green Ship Finance - West. The publication recognised Sovcomflot's USD 252M seven-year credit agreement, with a consortium of foreign banks, to finance the construction of a series of the world's first large-capacity LNG-fuelled tankers.

    Sergey Frank, President and CEO of PAO Sovcomflot said: “Sovcomflot started 2019 with a strong Q1 performance, boosted by a return to profitability in our conventional crude and product tanker markets following an upswing in the first months of 2019. Profits from our crude fleet in particular increased 53 per cent year-on-year compared to Q1 2018.

    “Although spot market rates for conventional tankers have yet to reach their historic averages, they have come off the low levels witnessed in the  2017-Q3 2018 period and, whilst we remain cautious for Q2 2019, we believe that a sustainable market recovery in the conventional tanker markets appears likely towards the end of 2019 and through 2020.

    “Despite cautious optimism about conventional tankers, it is our industrial fleet working in the Offshore and Gas sectors where Sovcomflot specialises in delivering safety-focused operations, with high quality assets, under long-term contracts that remains central to Group strategy going forward. We have a number of such projects delivering in the next two years, and a pipeline of opportunities that we are looking to develop over the next five year window that will further increase Sovcomflot’s participation in these core strategic sectors.”

    Evgeniy Ambrosov, Senior Executive Vice-President of PAO Sovcomflot said: “During the quarter, we witnessed several landmark events in the history of the development of remarkable Russian Oil & Gas projects, in which Sovcomflot participated directly, including the 10th anniversary of LNG shipments from the Sakhalin-2 project, using SCF’s two LNGC’s Grand Aniva and Grand Elena to export natural gas to Asian markets. We also saw the 10th million tonne of crude oil loaded on SCF’s ice-breaking shuttle tankers serving the Prirazlomnoye project, operated by Gazprom Neft. The willingness of key customers to employ SCF vessels for extended periods of time is the best proof of SCF’s highest level of reliability as a business partner and an ocean carrier of hydrocarbons.”

    Igor Tonkovidov, Executive Vice-President, Chief Operating & Chief Technical Officer of PAO Sovcomflot said: “During the period, the Group took further steps to reduce its environmental footprint by increasing the use of LNG as primary fuel on two more Aframax tankers. The move represents a significant commitment by the Group to improve the environmental profile of oil transportation and is part of our ‘Green Funnel’ project developed in collaboration with Shell. Our track record of innovation was duly recognised by an award to our IBSV Yevgeny Primakov with her unique specifications as ‘Offshore Support Vessel of the Year’.

    Nikolay Kolesnikov, Executive Vice President and CFO of PAO Sovcomflot said: “With a stable balance sheet and positive cash-flow during the first quarter, supported by good earnings visibility, Sovcomflot is well positioned to continue with the implementation of its strategy and fulfilling the evolving needs of our clients. Sovcomflot’s contracted capex is fully funded, and the company maintains access to international and domestic sources of long-term capital.”

    Sovcomflot (SCF Group) is one of the world's leading energy 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 fleet includes 146 vessels with a total deadweight of over 12.7 million tonnes. Over 80 vessels have an ice class.

    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 25

15:25 Svitzer begins sea trials of new line handling technology
13:41 HII’ first cut of steel kicks off advance construction for Columbia-Class submarine program
12:38 Two new LNG-Hybrid vessels to join Seaspan Ferries fleet
11:33 GSL to acquire three containerships

2019 May 24

18:07 Port of Antwerp 1st port of call for reefer service from Peru, Chile, Colombia, Ecuador and Panama
17:49 Hannu Ylärinne appointed COO and Executive Vice President of Arctia Group having retained his position as CEO of Meritaito
17:28 Coast Guard issues waterway restrictions on Mississippi, Illinois Rivers
17:11 NOVATEK obtains new licenses on Krasnoyarsk Territory
17:02 CMA CGM launches the Reefer Pharma division for the temperature-controlled transportation of pharmaceutical products
16:50 Throughput of Rostov-on-Don port in 4M’19 fell by 7% Y-o-Y to 5.11 million tonnes
16:28 Teekay Tankers reports 1Q 2019 results
16:17 Acta Marine names its third W2Work offshore vessel Acta Centaurus
15:53 Ambal ferry returns to Baltijsk-Ust-Luga line after scheduled maintenance
15:27 Surveillance camera installed by Freeport of Riga Authority on Krievu Island for coal dust monitoring
14:59 Port of Tallinn got acknowledged as socially responsible company
14:01 Port Houston volume up nine percent year-over-year
13:50 Feodor Shishlakov appointed head of Volgo-Baltic Administration
13:22 PSA, PFR and IFM investors jointly acquire DCT Gdańsk
12:18 ASI Marine develops an alternative safe method for surveying in hazardous high flow areas.
12:00 Lotos shipyard launches Peotr Veliky, cruise ship of Project PV300VD
11:37 New tugboat built by Damen to expand port fleet of Nakhodka TSP
11:16 SeaBird announces update on vessel acquistion and contemplated private placement of new shares
11:06 Jotun creates new standard for predictable, long-term antifouling protection with SeaForce and HydractiveTM technology
11:01 Global Ship Lease announces agreement to acquire three containerships
10:45 Russian ship owners got 29 new seagoing commercial ships with total deadweight of 552,400 tonnes in 2018 - CNIIMF
10:24 Brent Crude futures price is up 1.22% to $68.59, Light Sweet Crude – up 1.23% to $58.62
10:11 NORDEN boosts Middle East activities with new 3-year contract
10:09 Royal IHC names 2,300m³ TSHD LESSE
09:58 Rotterdam sends hyper-smart container on trip around the world
09:47 Bunker prices go down at the port of Saint-Petersburg, Russia (graph)
09:26 ZIM announces changes to MGX Service
09:16 MABUX: Bunker market this morning, May 23
09:15 Baltic Dry Index is up to 1,068 points
08:50 Bunker prices review at global sea ports, Week 21st, 2019

2019 May 23

18:43 DOF Subsea secures contract in Brazil
18:21 ZIM Q1 2019 revenues rose 6.0% to $796.2M
18:06 MOL to Join Consortium on TCFD (Task Force on Climate-related Financial Disclosures)
17:44 CNIIMF forecasts NSR cargo traffic to reach 100 million tonnes by 2035
17:11 USCG closes case of downed aircraft in Prince William Sound
17:06 Port of Rotterdam sees significant progress in development HES Hartel Tank Terminal
16:55 GOGL announced net loss of $ 7.5M vs net income of $ 23.6M in 1Q 2019
16:30 New digital solution from Rolls-Royce and ZF improves availability and CO2 emissions of ships
16:05 CMA CGM orders 50,000 Traxens trackers
15:23 OCTOMAR Serviços Marítimos takes delivery of Damen Fast Crew Supplier 2206
14:47 RF Navy’s destroyer participated in combat training in the Sea of Japan
13:36 High Representative/Vice-President Federica Mogherini visits ITS Carlo Margottini
13:05 Singapore to host Port Maintenance and Facilities Management Summit on 24-27 September 2019
12:29 Optimarin gears up for retrofit wave with expansion and new hires
12:19 FESCO and Russian Railways launch transit service for delivery of goods from Japan to Europe through Russia
11:43 Bunker prices go up at the Far East ports of Russia (graph)
11:21 Severnaya Verf starts cutting metal for third processing trawler of Project 170701 ordered by NOREBO Group
11:08 Diana Shipping announces time charter contract for m/v Baltimore with Koch
10:26 Brent Crude futures price is down 0.69% to $70.5, Light Sweet Crude – down 0.6% to $61.05
10:08 Port of Antwerp aims for more efficient road transport with night-time opening hours on Right bank of Scheldt
09:57 Kuibyshev reservoir level allows for fleet operation - RF Transport Ministry
09:39 NOVATEK signed MoU with Ninh Thuan Province in Vietnam
09:20 Baltic Dry Index is up to 1,059 points
09:10 MABUX: Bunker market this morning, May 23
09:08 Royal IHC signs contract with Cameroon’s Port Authority of Douala
08:25 Sempra LNG and Aramco Services Company sign heads of agreement for Port Arthur LNG