Sovcomflot’s Board of Directors is satisfied with the company’s robust performance in 2016

At a meeting held on 11 April 2017, the Board of Directors of PAO Sovcomflot reviewed the results of SCF Group’s operations in 2016.

The Board gave provisional approval to the company’s 2016 Annual report and accounts.

The Board of Directors noted that SCF Group had achieved good operational and financial results for the reporting period despite a significant downturn in the tanker market, where spot freight rates had fallen by more than 40% compared to 2015 and time-charter rates had declined by up to 25%. Gross revenue for 2016 reached USD 1.388 billion (2015: USD 1.483 billion). EBITDA amounted to USD 706.5 million (2015: USD 780.1 million). Net profit was USD 206.8 million (2015: USD 354.5 million).

Ilya Klebanov, Chairman of the Board of Directors, said: “The Board of Directors is satisfied with the performance of Sovcomflot in 2016. The company is systematically implementing its Development strategy focused on expanding participation in long-term oil and gas projects with a fixed return, which enables the company to successfully overcome high volatility in the tanker market and consistently achieve positive operating results.

During the reporting period Sovcomflot actively developed mutually beneficial cooperation with Russian and foreign charterers, and domestic shipbuilders aimed at developing and implementing effective technical solutions that make seaborne energy transportation safer for the environment. These measures will no doubt allow Sovcomflot to strengthen its position as a technological leader in the energy shipping.”

Alexey Klyavin, Chairman of the Strategy Committee of the Board, noted: “The Strategy Committee of the Board of Directors believes that the company has successfully accomplished the tasks set for 2016 in its Development Strategy. Worthy of mention, among the most significant projects implemented in the reporting period, are the start of year-round seagoing transportation of crude oil from the Gulf of Ob by SCF’s high-tech vessels of the Shturman Albanov series under the Novy Port Project, as well as the completion of preparations for ice trials and the commissioning into the fleet of the world’s first ice-breaking tanker, Christophe de Margerie, designed to serve the Yamal LNG Project.”

David Moorhouse, a member of the Board of Directors, added: “In 2016, the company completed the development of а project, designed to improve the environment for all, through the substitution of gas for heavy fuel oil. The new technology will be used to power the next generation of Aframax tankers and will signal the start of a global transformation of maritime transport towards more efficient and environmentally friendly technologies. The use of LNG fuel will significantly improve vessels’ environmental performance, and meet the growing desire of SCF Group’s customers to see their shipping requirements provided with the minimal adverse impact on the environment”

In accordance with the current dividend policy of the company, the Board of Directors proposed to allocate RUB 6,141 billion for dividends.

SCF Press Office

PAO Sovcomflot (SCF Group) is one of the world's leading shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as servicing offshore upstream oil and gas installations and equipment. The Group’s fleet comprises 147 vessels with a total deadweight of over 13.1 million tonnes. The company is registered in St. Petersburg with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai. 

The Group offers a wide range of vessels in the market segments most demanded by major Russian oil and gas companies. With its own technical development and unique approach to advanced technologies, Sovcomflot can meet the most demanding customer requirements, providing effective transportation for oil & gas companies.