• 2016 August 25 13:07

    Sovcomflot’s H1 2016 net profit down 23.3%, y-o-y, to $165.9 mln

    Sovcomflot says its IFRS net profit for the six month ending June 30, 2016 declined by 23.3%, year-on-year, to $165.9 mln. In the reported period, gross revenue fell by 9.2% to $680.2 mln, EBITDA – by 1.9% to $385.8 mln.

    The statement also marks the following highlights: successful issue of USD 750 million, 5.375 per cent coupon, seven-year term unsecured Eurobonds; USD 260 million long-term loan agreement signed with VTB Bank in June; Five new vessels launched: pioneering 172,600 m3 capacity ice breaking LNG carrier (Arc7 ice class) for Yamal LNG project (January), three new Arctic shuttle tankers for Novy Port project (February, April, June), and a new ice-breaking supply vessel to serve Sakhalin-2 project (June).

    Commenting on the Group’s performance Sergey Frank, President and CEO of PAO Sovcomflot, said: “From January to July, there was a notable downswing in the global tanker market, with spot rates in certain market segments dropping by one third year-on-year, which has affected the financial performance of the entire industry.”

    “Analysts foresaw this downturn, so, as part of its Development Strategy, Sovcomflot has focused its efforts on diversifying its business by beefing up its portfolio of long-term industrial projects with a fixed high rate of return. Participation in projects such as Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, and Yamal LNG will guarantee a reliable source of constant income for Sovcomflot even in times of market uncertainty and ensure the stable employment of a significant proportion of our fleet. As of 31 July 2016, future contracted revenue stood at USD 8.2 billion.”

    Nikolay Kolesnikov, Executive Vice President, Chief Financial Officer, commented: “Despite the tanker market downturn which has seen rates decline by 30% in some market segments, Sovcomflot’s net profit adjusted for non-operating revenues decreased by only 5.8 per cent. This matches the Group’s performance dynamics during 1H2016. Sovcomflot was able to enhance its debt repayment profile significantly following a highly successful unsecured USD 750 million Eurobond issue. The funds raised were used to refinance the Group’s debut Eurobonds issued in 2010.”

    “The success of the Eurobond issue gave Moody’s sufficient grounds to upgrade the Group’s corporate rating from Ba2 to Ba1. Together with a new long-term loan agreement signed with VTB Bank, the amount of external debt financing raised by Sovcomflot during 1H2016 exceeded USD 1 billion, and SCF’s contracted shipbuilding programme is now fully financed.”

    Business segment highlights when it comes to Crude Oil Transportation: Time charter equivalent (TCE) revenues in the first half (H1) ended 30 June 2016 were USD 266.2 million (H1 2015: USD 280.5 million); Oil Products Transportation: Time charter equivalent (TCE) revenues in the first half (H1) ended 30 June 2016 were USD 105.7 million (H1 2015: USD 126.6 million); Gas Transportation: Time charter equivalent (TCE) revenues in the first half (H1) ended 30 June 2016 were USD 72.6 million, a notable increase on the previous first half period (H1 2015: USD 63.6 million); Offshore Development Services: Time charter equivalent (TCE) revenues in the first half (H1) ended 30 June 2016 were USD 115.1 million (H1 2015: USD 114.4 million); Other: Time charter equivalent (TCE) revenues in the first half (H1) ended 30 June 2016 were USD 16.9 million (H1 2015: USD 32.5 million).

    As at 30 June 2016, Sovcomflot’s fleet (including vessels owned, chartered-in, and in joint ownership with third parties) comprised 140 vessels with a combined deadweight of approximately 12.3 million tonnes. At this time, there were eight vessels under construction (one Arc7 ice-breaking LNG carrier of 172,600 m3 capacity, one multifunctional ice breaking (“MIB”) supply vessel, three MIB standby vessels, and three ice-class shuttle tankers).




2021 September 26

17:45 USCG, Japanese navy conduct exercise near Dutch Harbor
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13:21 LR projects win funding to accelerate research into maritime decarbonisation
12:28 ESVAGT takes delivery of third newbuilt SOV vessel
11:07 ABS Awards AIP to Ned Project’s wind turbine installation vessel design

2021 September 25

15:03 Rolls-Royce and Sanlorenzo add new dimension to partnership with mtu engines and integrated bridge solutions
13:27 JAX LNG and TOTE complete first renewable LNG bunkering in the United States
12:41 Babcock cuts steel for Royal Navy’s Type 31 frigate HMS VENTURER at Rosyth
11:37 Höegh LNG Partners LP announces a new long-term FSRU contract for the Höegh Gallant
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2021 September 24

18:16 ABS and HHI design optimized LNG carriers
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17:55 Italian terminal operator orders two Konecranes Gottwald Mobile Harbor Cranes
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15:03 Maersk invests in electrofuels startup company
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14:13 Dredge spoil disposal system planned for fairway deepening project
13:57 LAS Vice Admiral Kulakov went to the Atlantic
13:33 Wärtsilä ensures optimal performance and minimal carbon footprint for world’s most environmentally friendly ferry
13:09 Wan Hai Lines holds online ship naming ceremony for new vessels
12:38 Sredne-Nevsky Shipyard launched unmanned research ship Pioner-M
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09:59 MPA, SSA and GCNS sign MoU to raise carbon accounting capabilities amongst maritime companies in Singapore
09:41 MABUX: Global Bunker Market may continue firm upward trend on Sept 24
09:24 Crude oil prices continue increasing
09:09 Baltic Dry Index as of September 23

2021 September 23

18:05 Maersk calls Jafza home for its first Warehousing & Distribution facility in the UAE
17:25 GTT and Deltamarin receive AiP from American Bureau of Shipping for their new design applied for LNG fueled tanker
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16:15 Panama Canal joins to the Call to Action for Shipping Decarbonization
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15:05 Synergy Group to take over Maersk Tankers’ technical management business
14:37 DNV and LISCR award AiP to HHI for 40,000 CBM liquefied CO2 carrier design
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09:46 MABUX: Global Bunker Market may demonstrate firm upward evolution on Sept 23
09:29 Crude oil prices continue increasing
09:14 Baltic Dry Index as of September 22

2021 September 22

18:05 ClassNK joins as signatory to Call to Action for Shipping Decarbonization
17:47 Localization level of LK-60 icebreakers estimated at 92% in finance terms
17:20 Torvald Klaveness joins over 150 industry leaders and organizations in call for decisive government action to enable full decarbonization of international shipping by 2050
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16:30 LR, HHI and KSOE sign MoU to develop digital twin technology for an LNG carrier
16:10 APM Terminals Pipavav marks 1,000 days of safe operations
15:39 Wärtsilä and SHI agree to collaborate on ammonia fuelled engines for future newbuilds
15:14 NAVTEK proves first zero-emissions tugboat performance