• 2021 August 26 10:08

    Sovcomflot reports contracted 2021 revenue of at least USD 1.0 billion in H1

    PAO Sovcomflot (SCF Group), a global leader in marine energy transportation services, releases its Condensed Consolidated Interim Financial Statements for the periods ended 30 June 2021.

    According to the company’s statement, the industrial business performance maintained a stable upward trend, while the conventional segment’s performance remained muted reflecting unfavourable market conditions in spot tanker markets.

    The contracted 2021 revenue is at least USD 1.0 billion in H1. Following new additions to the industrial business portfolio, the contract backlog remained at USD 24 billion at the reporting date. 

    Q2 2021 time-charter equivalent (TCE) revenue was USD 284.9 million (3.6 per cent increase on Q1 2021). H1 2021 revenue was USD 559.9 million (28.5 per cent down year-on-year).

    Q2 2021 EBITDA was USD 181.2 million (16.2 per cent increase on Q1 2021). EBITDA margin improved by 6.9 pp to 63.6 per cent. H1 2021 EBITDA declined 42.2 per cent year-on-year to USD 337.2 million. 

    Q2 2021 net income adjusted for impairment provisions, foreign exchange gains and losses and gains and losses related to revaluation of financial assets  reached USD 36.1 million (55.8 per cent increase compared with Q1 2021). H1 2021 adjusted net income was USD 59.2 million. 

    SCF Group’s industrial business portfolio, comprising liquefied gas transportation (LNG and LPG vessels) and harsh environment offshore services (ice-class shuttle tankers and ice-breaking supply and stand-by vessels) accounted for 65 per cent of SCF Group TCE revenue in H1 2021 and continued to provide a long-term fixed income revenue stream.

    Industrial business segments contributed USD 363.3 million to H1 2021 TCE revenue, delivering 6.1 per cent year-on-year growth due to addition of three new LNG carriers added in 2020 and 2021, employed under long-term contracts with energy majors Shell and TotalEnergies. Q2 2021 revenue for the industrial segment of USD 180.6 million was down 1.2 per cent on Q1 2021, due to scheduled repair and maintenance works in the offshore segment. 

    H1 2021 (Net Earnings from Vessels Trading (NEVT) increased to USD 300.5 million (up 6.0 per cent year-on-year). In Q2 2021 NEVT reached USD 148.8 million (down 2.0 per cent on Q1 2021) following the revenue trend. 

    SCF Group’s conventional tanker business (crude and oil products transportation business segments) contributed 32 per cent to H1 2021 TCE revenue.

    H1 2021 performance of the conventional tanker business remained under pressure, as spot tanker rates dropped 4 times year-on-year, which resulted in a revenue decline to USD 180.2 million (55.9 per cent down year-on-year) reflecting the continued negative impact of the Covid-19 pandemic on tanker freight market dynamics but also the strong base effect of H1 2020 numbers. Revenue remained stable quarter-on-quarter. 

    H1 2021 NEVT in the conventional tanker business reached USD 81.4 million. Q2 2021 NEVT improved to USD 42.0 million (6.4 per cent up on Q1 2021) - results reflecting fewer scheduled repairs in Q2 2021.

    SCF Group continued to grow its long-term industrial business portfolio, with a focus on implementation of the most advanced and environmentally sound technologies. As of 30 June 2021, SCF operated a fleet of 43 industrial vessels with one vessel – the LNG carrier SCF Timmerman – added to the fleet in January 2021.

    SCF Group continues to focus on the development of its liquefied gas transportation services. In addition to a contract for a newbuilding 174,000-cbm Atlanticmax LNG carrier concluded with TotalEnergies, in January 2021, in July 2021 SCF received confirmation from TotalEnergies to exercise its option for two more similar LNG carriers. The vessels will be chartered for a period of up to seven years and add USD 360 million to SCF’s contract backlog. Delivery of the vessels is scheduled for Q3 2023 and H2 2024.

    As a part of its offshore business development, two LNG-fuelled tankers  will be equipped to shuttle crude oil and serve the Sakhalin-2 project under ten year contracts starting from 2024, with extension options for up to three years providing an additional contract backlog of USD 215 million.

    A recovery in freight rates continued to be deferred during Q2 2021. The temporary seasonal relief in the Aframax sector, over March-April 2021, was insufficient to positively influence the first half results for the conventional tanker fleet.  There are a number of developments creating a base for rates improvement.

    Medium-term OPEC+ production rises, need to replenish depleting stockpiles as consumption picks up in line with easing of pandemic-related restrictions, and respective return of more normal refining activity should trigger additional demand for conventional tanker fleet while rising prices for newbuildings should limit supply of new fleet.

    As a part of the ongoing fleet modernisation and optimisation programme, Sovcomflot disposed of some aging vessels. During H1 2021, two MR oil products vessels and two Panamax oil product tankers (partly owned through equity-accounted JVs) have been sold. In addition, two Aframax tankers, two Suezmax tankers and two Panamax dry bulk carriers were sold after the reporting date. By selling two Panamax dry bulk carriers, Sovcomflot has completed its exit from non-core dry bulk segment. A total net sale proceeds of USD 112 million will be used to finance Sovcomflot new projects.

    Three leading international rating agencies upgraded Sovcomflot’s credit ratings to investment grade level: Fitch (BBB-/stable) and S&P Global (BBB-/stable) in April 2021 and Moody’s (Baa3/stable) in June 2021.  

    On 26 April 2021, PAO Sovcomflot completed a USD 430 million 7-year unsecured Reg S/144A Eurobond issue with a coupon of 3.85%. SCF utilized the proceeds to fund a concurrent tender offer for the Company’s outstanding Eurobonds maturing in 2023. The deal was debt neutral for SCF Group, whilst allowing it to smooth out and extend its debt repayment profile and reduce pricing of its unsecured debt.

    In April 2021, Sovcomflot reached agreements with lenders to reduce the fixed interest rate for two secured bank loans by an average of 0.6% for the total outstanding loan balances of USD 410 million.

    Marine Money, an international maritime finance publication, recognised SCF’s IPO on the Moscow Exchange in October 2020, as The IPO Deal of the Year. The award-wining transaction brought total gross proceeds of RUB 42.9 billion (equivalent to USD 550 million as of the date of issue). The Russian Federation, that owned 100 per cent of the company prior to the offering, lowered its stake to 82.8 per cent.

    On 15 June 2021, SCF’s Annual General Meeting of Shareholders (AGM) approved dividends on ordinary registered shares of PAO Sovcomflot, based on the results of 2020, in the total amount of RUB 15.8 billion, or RUB 6.67 per share. The dividend was paid in full to shareholders in July 2021.

    SCF targets paying dividends of not less than 50% of net profit adjusted for non-monetary items (impairment provisions, foreign exchange gains and losses and revaluation of financial assets)ii, subject to the Board of Directors and shareholders’ approval.

    Commenting on the H1 and Q2 2021 results, Igor Tonkovidov, President and Chief Executive Officer of PAO Sovcomflot, said:

    Sovcomflot is proving the efficiency of its business model, with more than half of our revenue coming from long-term fixed-rate contracts and managed to generate positive returns, amidst an extremely unfavorable tanker market environment.

    “We are constantly working to increase our robust contract backlog. With the addition of new time-charter contracts with TotalEnergies, for two new generation Atlanticmax LNG carriers, and new contracts for two LNG-fuelled tankers for the Sakhalin-2 project, our total current contract backlog stays at USD 24 billion, while our contracted revenue for the current year 2021 reached USD one billion. In accordance with SCF-2025 strategy, we intend to continue to develop our high margin industrial business further, with its strong cash generating ability.

    “We are continuing to experience the influence from the Covid-19 pandemic on our day-to-day operations, with several waves of the pandemic in various regions resulting in new restrictions and impacting operations. Our focus remains on the health and safety of our crew and shore personnel, as well as the efficiency of our fleet operations and providing uninterrupted services to our customers. 

    “I take this opportunity to invite you to our first Capital Markets Day, which we are hosting together with the Moscow Exchange on 7 October 2021, where we will discuss recent developments and our strategy.”

    Nikolay Kolesnikov, Executive Vice President & Chief Financial Officer of PAO Sovcomflot added:

    Sovcomflot’s credit ratings have been upgraded to investment grade level by S&P Global, Fitch and Moody’s, reflecting the Group’s sustainably strong credit position, which allows us to work on our credit portfolio optimization. As a result, we partially refinanced our Eurobond at a lower coupon and negotiated better credit terms for two outstanding secured bank loans. 

     “Our financial and liquidity position allows us to meet our capital commitments and pay dividends to our shareholders, which will be calculated on the adjusted net profit basis starting from 2021.

    “We are very pleased that our efforts towards sustainable development and strong corporate governance were recognised by Webber Research, which included Sovcomflot for the first time in its ESG Scorecard (comparable ranking within universe of maritime entities).

    “Also during the reporting period Sovcomflot shares were included in mid cap section of FTSE Global Equity Index and MSCI Russia Small Cap index, which should further support liquidity of SCF shares.”




2024 March 29

15:41 Wan Hai Lines holds naming ceremony for 13,100TEU newbuilding “WAN HAI A15”
15:10 MOL announces restructuring measures
14:45 Drewry predicts impact on container calls at US East Coast ports after the collapse of the Francis Scott Key Bridge
14:25 Chevron’s first hybrid electric fueling barge arrives in Singapore
13:40 HD KSOE and Infineon sign MoU to develop ship electrification technology
13:29 NYK and JMU formulate method for evaluating ship performance in actual seas
12:59 HD Hyundai wins US$463 mln warship order in Peru
12:09 COSCO SHIPPING Ports throughput up by 4.4% YoY to 135,808,554 TEU in 2023
11:46 The "Ane Maersk" calls at the Eurogate container terminal in Hamburg for the first time on its maiden voyage from Asia to Europe
11:20 Sallaum Lines and Fujian Mawei Shipbuilding commence construction of Ocean Class vessels
10:43 Oasis Marine develops solutions for offshore hydrogen bunkering
10:03 Petrofac secures contract extension with ONEgas West in the UK market

2024 March 28

18:05 Jan De Nul, ENGIE and Equans launch a pilot project centred around the use of Vanadium Redox Flow batteries
17:35 Latvian port equipment manufacturer Bleste introduces new bulk handling ‘bucket’
17:05 Investors upgrade Navios Maritime Partners
16:25 DEME reports 22% increase in the orderbook and a record-high turnover of 3.3 billion euros in 2023
16:14 MABUX: Bunker Outlook, Week 13, 2024
15:41 AD Ports Group announced the opening of Saadiyat Marina & Ferry Terminal and Rabdan Marina
15:11 Sydney invests $11.5 million in two new operational vessels designed by Incat Crowther
14:55 China’s Jinzhao wins Peru $405m port construction contract
14:13 APM Terminals Moín handled six million TEU
13:48 ClassNK grants Innovation Endorsements for Products & Solutions to two innovative initiatives by MOL
13:37 Konecranes launches its flagship Konecranes X-series industrial crane
12:53 United European Car Carriers UECC spearheads collaboration with industry leaders to advance CNSL as a sustainable marine fuel
12:26 Ocean Network Express announces Transpacific service
11:48 Yang Ming announces 2025 Trans-Pacific service network
11:24 Fincantieri signs contract for the supply of two PPAs to Indonesia
10:42 Maersk transported more than 660,000 TEU using clean fuel in 2023
10:23 Documentation delays push industry costs to $3bn
09:48 PONANT and FARWIND Energy partner to develop green hydrogen refueling solutions

2024 March 27

18:22 Bureau Veritas awards world’s first prototype certification for SolarDuck’s floating offshore solar solution
17:58 The recently converted Allseas's shallow water pipelay barge starts preparations for its first commercial project
17:38 The Port of Rotterdam calls on the European Commission and Parliament to focus on actively promoting green energy
15:23 SEFE to become sole shareholder of WIGA
14:53 Ocean Installer secures yet another SLM contract with Equinor
14:23 Cadeler signs offshore wind turbine installation contract for the vessel Wind Scylla
13:42 Carnival Cruise Line orders 5th Excel-class cruise ship
13:11 Maersk and MSC overcharging cargo owners for EU ETS, says T&E
12:52 The Port Authority of Valencia launches the ZAL project in the Port of Valencia
12:11 Clarkson Port Services and Peak Group collaborate to deliver Port Agency services across the North Sea
11:42 Wan Hai Lines holds ship naming ceremony for new vessels
11:24 Consolidated shipping lines EBIT loss was $1.44 billion in Q4 2023: Sea-Intelligence
10:49 Seaspan Shipyards receives long-term contracts for the pre-construction work of the the Canadian Coast Guard's first six multi-mission vessels
10:14 Woodside completes sale of 10% scarborough interest

2024 March 26

18:02 COSCO Shipping Lines introduces new Americas service
17:30 Davie awarded first contract for design of icebreaker fleet under Canada’s National Shipbuilding Strategy
17:04 Sanctions complicate Arctic LNG ship sales, Hanwha Ocean says - Bloomberg
16:57 Terntank places an order for 1+1 additional wind/ methanol-ready hybrid tanker
16:28 BW LNG completes acquisition of two TFDE vessels from Stena Bulk
15:50 Hanwha Ocean develops VR-based special vehicle simulator
15:20 TotalEnergies and SINOPEC join forces to produce sustainable jet fuel at a SINOPEC's refinery
14:52 Wärtsilä Lifecycle Agreement to guarantee operational reliability of new wind farm installation vessel
14:23 Hudong-Zhonghua launches two LNG carriers
13:51 Cargo ship hits Baltimore’s Key Bridge
13:12 Final sanctioned tanker with Russian Sokol oil to reach China port - Reuters
12:42 Adani Ports acquires 95% of Odisha's Gopalpur Port from SP Group for $162 million
12:21 IHI and Yara Clean Ammonia agree to jointly assess clean ammonia business collaboration
11:41 Yara Clean Ammonia and Azane granted safety permit to build world's first low emission ammonia bunkering terminal
11:16 Wartsila and Royal Caribbean Group celebrate 15 years of collaboration on digital transformation
10:46 A global carbon tax on shipping is coming, says ABS Chairman and CEO
10:21 Eni, Fincantieri and RINA establish partnership for maritime transport decarbonization

2024 March 25

18:07 The Maritime and Port Authority of Singapore continues to investigate reports of oil spills off the port of Tuas
17:31 “K” Line, NIPPON HAKUYO and OPT Gate sign an agreement for a new fire detection system for car carriers
17:07 Greek merchant fleet recorded slight decline in January 2024
16:47 Hanwha Ocean Plans to develop green technology and naval ships
16:25 U-Ming Singapore and ITOCHU sign milestone MoU for the joint development of ammonia dual-fuel and de-carbonized vessels
15:34 Svitzer targets methanol-fuelled MAN 175DF-M engine for tug application
15:04 Wallenius Wilhelmsen signs contracts for four 9,300 CEU vessels with China Merchants Jinling Shipyard
14:40 Taiwan International Port to upgrade terminal facility at Kaohsiung
13:59 Сruise ship Carnival Freedom catches fire near Bahamas