Russia: Sovcomflot Net Profit Down

OAO Sovcomflot announced its results for the second quarter and half year periods ended 30 June 2012.

Highlights Q2 and H1 2012:

• Gross revenue in H1: USD 777.7 million (increased by 6.2 per cent in comparison to USD 732.6 million in H1 2011)
• EBITDA in H1: USD 267.9 million (increased by 1.9 per cent in comparison to USD 262.8 million in H1 2011)
• Net profit for H1: USD 50.9 million (declined by 20.7 per cent in comparison to USD 64.2 million in H1 2011)
• Long-term time charter agreements concluded with Shell Trading&Shipping Company (STASCO) for two 170,000 cubic metre ice class LNG carriers
• Long-term time charter of two 20,600 cubic metre ice-class LPG tankers concluded with Russian oil and chemical company SIBUR
• Expansion of joint venture with Glencore International AG through joint ownership and management of additional four 74,000 tonne DWT LR1 product tankers, all of four were delivered in Q1 2012.
• In Q2 NS Parade becomes the first vessel to load at Rosneft’s new deepwater loading facility at Russia’s Tuapse refinery with a maximum throughput capacity of 7 million tonnes per annum
• Nevsky Prospect becomes the first Aframax vessel to load at new Ust-Luga terminal with a maximum throughput capacity of 38 million tonnes per annum
• Successful completion of 1,800 nm towage of the 140,000 t GBS platform for the Arkutun-Dagi project (Sakhalin 1)
• USD 140 million credit facility signed with Citi and Bank of America Merrill Lynch for financing Sovcomflot’s first two VLCC tankers on long-term charter to Petrochina.

Sergey Frank, President & CEO of OAO Sovcomflot, said: “Despite continued depression in the global tanker markets resulting from a combination of sustained weak demand and increased supply from the ongoing delivery of new buildings into operation, the Group has in the first half of 2012 demonstrated resilience to these factorsand achieved substantial operational profit for the period.”

“Over the first six months of 2012, the Group has met its targets under the development strategy to expand further its business portfolio in the offshore and liquefied gas transport sectors with significant milestones being achieved.”

Nikolay Kolesnikov, Senior Executive Vice President, Chief Financial Officer, added: “A long-term financing deal with two leading global financial institutions new to the SCF Group’s pool of financial partners despite ongoing turbulence in the financial markets demonstrated confidence of international lenders in the SCF Group. We have been honouring all our existing bank debt obligations and are on track to finance outstanding capital commitments on the Group’s shipbuilding programme.”

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LNG World News Staff, September 13, 2012