Russia: Sovcomflot Net Profit Dips

Russia: Sovcomflot Net Profit Dips

SCF Sovcomflot (SCF Group) reported results for the nine month period ended 30 September 2011.

SCF Highlights

– Gross revenues USD 1,075.6 million (+ 7.9 pct)
– Time charter equivalent (TCE) revenues USD 697.3 million (-3.5 pct)
– EBITDA USD 361.0 million (-13.7 pct)
– Net profit USD 46.6 million (-53.5 pct)
– Debt to capital ratio : 47.5 pct (43.8 pct at 30 September 2010)
– Total fleet 156 owned and chartered in vessels of 11.7 million tonnes DWT (+ 8.5 pct)
– Average tanker age – 6.8 years
– In August-September 2011, SCF Suezmax tanker Vladimir Tikhonov becomes largest vessel ever to transit the Northern Sea Route (NSR), from the Atlantic to Pacific Ocean, with a full cargo of gas condensate of Russian oil major Novatek.
– 15-year time charter agreement with Gazprom Global LNG (subsidiary of Gazprom) for two new generation ice-class ‘Atlantic-max’ 170,000 cubic metres LNG carriers
– Aframax tanker Adygea begins serving Statoil-operated Peregrino oilfield in Brazil –marks entry to a new offshore sector, with three more ships with long-term contract to come into operation soon
– Marine seismic operations begun with new generation hi-tech X-bow 3D 1-A ice class vessel Vyacheslav Tikhonov, built in 2011.

Sergey Frank, President and CEO of OAO Sovcomflot:

It has been a very challenging yet still profitable period for the company. SCF Group’s business model has demonstrated greater resilience than those of our competitors and peers. The SCF Group probably remains the only profitable tanker company of scale in the first nine months of 2011. Over this extremely difficult time, charter rates in the tanker market fell to their most depressed levels for more than a decade or even two. The tanker market continues to suffer from the twin pressures of an over-supply of vessels and a weak macro-economic outlook for the global economy. To say more, it is difficult to see any material improvement in tanker market prospects over the next 12 months. Despite this background, first three quarters of the year were profitable for SCF Group, which has sharpened its strategic focus on new industrial projects. Future contracted revenues concluded during the reporting period amount to more than one billion USD. SCF Group continues to implement its development Strategy, building the company as an integrated marine services provider to the oil and gas industry. The company is well positioned to deliver long-term sustainable growth in returns for its shareholder, whilst continuing to serve the evolving needs of our customers, providing safe, reliable and effective seaborne energy solutions.”

[mappress]

LNG World News Staff, December 9, 2011