Russia: Sovcomflot BoD Approves Strategy till 2017

At its meeting in Moscow on 12 September, the Sovcomflot Board of Directors approved the Company’s strategy for the period until 2017, and reviewed the Company’s performance and results for the first half of 2011. Together with Government agencies, the Board also considered the status of preparations for the privatisation of Sovcomflot and the sale of its shares.

Sergey Naryshkin, Chairman of the Board said: “Sovcomflot will continue preparatory work for taking the company public, with a target to complete the main pre-sale preparations by the end of 2011. Meanwhile the current adverse stock market conditions, including exceptionally high volatility, will mean that the available market window for effective share placement is unlikely to be before the second quarter 2012. The proposals from The Strategy Committee and position of the Board of Directors on this matter are supported by the Russian Government.”

The Company’s updated Strategy reflects the major points from Russia’s Transport Strategy for the period until 2030, and the development prospects for the domestic machine building sector in the context of Russia’s shipbuilding development Strategy for the period until 2020. The strategy document was approved by a number of ministries and governmental agencies and takes full account of the current market situation, as well as the latest trends in the energy industry, giving the Company additional opportunities for sustainable growth.

The financial results for the first half of 2011 demonstrate that Sovcomflot is one of the few tanker companies in the world to end the period in profit, despite the ongoing stagnation of the world shipping market.

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Source: Sovcomflot, September 12, 2011.