SCF’s expanding industrial shipping business provides resilience in challenging conventional tanker market
H1 2017 Highlights
- World’s first ice-breaking LNG carrier, Christophe de Margerie (Arc7 class, 172,600m3 cargo capacity), delivered into long-term time-charter with Yamal LNG
- New highly specialised ice-breaking platform supply vessel (IBSV) Gennadiy Nevelskoy (3,259 tonnes DWT) delivered in March. This was followed in June by Stepan Makarov (3,319 tonnes DWT), the first in a series of three new multifunctional ice-breaking standby vessels (MIB). All four vessels will operate on the Sakhalin-2 project under 20-year time-charters to Sakhalin Energy Investment Company
- USD 174 million, 15-year credit facility raised from Sberbank in March, to refinance two Arctic shuttle tankers (Mikhail Ulyanov and Kirill Lavrov) servicing the Prirazlomnoye project (the Pechora Sea).
- Successful raising of a further USD 150 million above the 2016 Eurobond issue, achieving one of the lowest yields for a global shipping company and which attracted widespread investors interest.
Commenting on the Group’s results Sergey Frank, President and CEO of PAO Sovcomflot, said:
“The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows. This has impacted severely upon the profitability of those owners focused solely on conventional shipping. During the first half of 2017, the benefit of the Group’s growing commitment to its specialised offshore and fixed income gas transportation businesses clearly demonstrated its worth. Despite the turbulent conditions seen in conventional markets, SCF Group has continued to demonstrate resilience whilst remaining able to position itself to take advantage of the future upswing in these markets when it comes.