SovComFlot: 2017 – Nine Months Results

 

 

 

SovComFlot: 2017 – Nine Months Results

Consistent strategy helps offset volatility in conventional tanker markets

PAO Sovcomflot (SCF Group), a world leader in energy shipping and servicing offshore upstream oil and gas projects, today reported its results for the nine-month (9M) period ended 30 September 2017.

As represented by a 70 per cent decline in the Clarksea Index, spot market freight rates in the conventional tanker sectors have reached their lowest levels of late, comparable to those experienced in 2011. Whilst this has impacted adversely upon the earnings of the Group’s conventional tanker fleet over 2017, it has been offset by the continued growth and resilience in the Group’s Offshore and Gas fleets.

Nine months 2017 financial highlights:

USD millions 9M 2017 9M 2016 %
Gross revenue (Freight and hire) 1,060.7 1,039.4 2.1
EBITDA[1] 408.3 554.5 -26.4
Net profit/(loss) (6.8) 218.1

A copy of the full nine-month and Q3 period accounts is available in the Investor section of the Group’s website: www.scf-group.com

Nine months 2017 highlights:

  • A strong performance from the Group’s Offshore business division saw 9M 2017 time charter equivalent (TCE) revenue grow by 55.9 per cent to USD 274.6 million (9M 2016: USD 176.1 million), with operating profit over the period rising by 50.5 per cent to USD 131.2 million (9M 2016: USD 87.1 million)
  • Ice-breaking platform supply / standby vessels Gennadiy Nevelskoy and Stepan Makarovwere delivered into long-term time-charters with Sakhalin Energy Investment Co Ltd. (SEIC) to serve the Sakhalin-2 project
  • In August, the ice-class shuttle tanker Vasily Dinkov’s (LU6, 71, 254 tonnes dwt) long-term time-charter with Lukoil Group, serving the Varandey project, was extended for a further five years
  • The world’s first ice-breaking LNG carrier, Christophe de Margerie (Arc7 class, 172,600m3 cargo capacity), was delivered into long-term time-charter with Yamal LNG. In August, she successfully completed her first commercial voyage, transporting LNG through the Northern Sea Route (NSR) from Norway to South Korea, becoming the world’s first merchant vessel to travel the full length of the NSR without icebreaker escort

  • Completion of series of refinancing deals totalling USD 324.0 million, including an additional USD 150 million tap of the 2016 USD 750 million Eurobond issue and a new USD 174.0 million long-term Sberbank facility for the Prirazlomnoye Project vessels, Kirill Lavrov and Mikhail Ulyanov
  • The Group has received a number of industry awards and notations including Seatrade’s ‘Deal of the Year’ award for its USD 750 million 7-year Eurobond bond offering and subsequent tap in 2017, and Lloyd’s List’s ‘Tanker Operator of the Year’ award at its annual Global Awards, as well as short listings in September for four separate Platts Global Energy Awards.

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