OAO Sovcomflot announced its financial and operating results for the third quarter ended 31 September 2013.
Highlights
Commenting on the results, Sergey Frank, President and CEO of OAO Sovcomflot, said: “Despite the challenges facing the global tanker industry over the past five years, Sovcomflot’s business model remains robust. Our conservative chartering policy, with 65 per cent of vessels engaged in long-term employment and industrial projects, continues to serve the company well. Consistent implementation of Sovcomflot’s strategy and our many years of experience in shipping in Arctic and Sub-Arctic seas contribute to expanding Sovcomflot’s share in the continuously growing sectors of Russia’s oil and gas industry. Overall our operations continue to benefit from the professionalism and expertise of our crews and shore-based staff around the world.”
Nikolai Kolesnikov, Senior Executive Vice-President, Chief Financial Officer , added: “Sovcomflot’s performance improved notably in the third quarter of 2013, where our earnings (EBITDA) increased by more than 10 per cent year on year, on the back of revenue growth. The Group’s stable financial condition and good earnings visibility have helped it retain access to sources of debt capital, on favourable terms, throughout the shipping cycle, and the Group is on track to secure post-delivery debt financing for its remaining vessels under construction. Sovcomflot was successful in concluding an innovative long-term credit transaction for financing two new LPG carriers.”
Business Segment Highlights
Gas Tankers
Time Charter Equivalent (TCE) revenues for the period ended 30 September 2013 increased by 7.0 per cent to USD 33.7 million (9M 2012: USD 31.5 million).
The Group operates a fleet of LNG and LPG carriers, comprising six wholly-owned vessels. This business segment accounted for 5.1 per cent of TCE revenues in the nine months of 2013 (9M 2012: USD 31.5 million). In addition, the Group has an equity ownership position in another four LNG carriers, operating under long-term contracts for the Sakhalin 2 and Tangguh projects.
During the period the high ice class LPG tankers Sibur Voronezh and Sibur Tobol entered service. They will enable the year-round exportation of LPG from the port of Ust-Luga (Leningradsky Region), Russia. The vessels are part of an expanding collaboration with the Russian petrochemical holding company SIBUR.
During the period the Group continued work on transportation solutions for the Yamal LNG project as part of its agreement with OAO Novatek and Vnesheconombank signed in June.
Fleet Summary
At the end of the first nine months of 2013, the Group’s fleet represented 158 vessels of nearly 12 million tonnes deadweight (30 September 2012: 156 vessels of 11.7 million tonnes deadweight), including nine escort tugs operating on a bareboat charter to an associate company. During the reporting period, six vessels were delivered to the Group, including: two LPG carriers (Sibur Voronezh and Sibur Tobol); two Aframax (LR2) tankers (Anatoly Kolodkin and Viktor Bakaev); one Panamax bulk carrier (NS Yakutia) and one multifunctional ice breaking supply vessel (Aleksey Chirikov, ice class Ice10).
As at 30 September 2013, the Group had six vessels under construction, including: two Very Large Crude Carriers (VLCC) and four LNG carriers, representing 1.0 million tonnes deadweight (30 September 2012: 1.5 million tonnes deadweight). The vessels are for delivery between November 2013 and April 2015.
[mappress] LNG World News Staff, November 21, 2013; Image: SCF