SovComFlot: Board of Directors approves company’s results for H1-17



Board of Directors approves company’s results for H1-17

The Board of Directors of PAO Sovcomflot (“SCF Group”) met on 3 October 2017, and approved the company’s financial results for the first half of 2017.

At the same time the members of the Board noted that, despite the notable weakening in the global market for shipping commodities by sea, the company demonstrated stable financial results. Sovcomflot’s gross revenues for the first half of 2017 totalled USD 710.1 million, with a net profit of USD 15.2 million.
Against a background of extremely unfavourable conditions in the global tanker shipping market, SCF Group continues to expand its fleet serving long-term industrial projects. On 27 March, the world’s first ever icebreaking liquefied natural gas (LNG) carrier, Christophe de Margerie, joined the Sovocmflot fleet. Meanwhile, two new icebreaking platform supply vessels, Gennady Nevelskoy and Stepan Makarov, were commissioned in the second quarter of the reporting period, serving the Sakhalin-2 oil and gas projects.
The members of the Board were briefed about the key events for SCF Group during August and September 2017:
  • On 17 August, Christophe de Margerie, the icebreaking LNG carrier, successfully completed her first commercial voyage, delivering a shipment of LNG along the Northern Sea Route from Norway to South Korea.
  • On 25 September, Sovcomflot signed a package of agreements with Rosneft, State Transport Leasing Company and Far Eastern Shipbuilding and Ship Repair Centre for the construction of five Aframax oil tankers and their subsequent use to export crude oil and Rosneft’s oil products. The tankers will primarily use natural gas fuel (LNG) and will be built by Far Eastern Shipbuilding and Ship Repair Centre (Primorsky Krai) in conjunction with Hyundai Heavy Industries (South Korea). Sovcomflot will operate the vessels.
  • On 27 September, Sovocmflot was named “Tanker Operator of the Year” by the leading industry journal Lloyd’s List. The Lloyd’s List Global Awards are considered one of the most prestigious awards in the global shipping industry.
  • Sovcomflot has been named a finalist at the international Platts Global Energy Awards 2017, promoted by the American information agency Platts, in four different award categories: Engineering Project of the Year (Cristophe de Margerie); Financial Deal of the Year (2016 Eurobonds and Eurobond tap in 2017); Industry Leadership – LNG; Industry Leadership – Midstream.



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