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Sovcomflot reports ‘robust growth’ in 2019 results

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LNG Industry,

PAO Sovcomflot (SCF Group) has announced its full year results for 2019.

2019 highlights:

  • Four newbuilds delivered: three ‘Green Funnel’ LNG-fuelled Aframax crude oil tankers (Korolev Prospect, Vernadsky Prospect, Samuel Prospect) and the Mikhail Lazarev, an Arctic MR shuttle tanker transporting crude oil for the Novy Port project, under a long-term contract with Gazprom Neft. All vessels are designed to the highest industry standards of safety and sustainability.
  • Korolev Prospect, a ‘Green Funnel’ crude oil tanker, became the first vessel to cross the entire length of the Northern Sea Route using only cleaner-burning LNG as a fuel.
  • Shipbuilding contracts were signed for the construction of two Aframax crude oil shuttle tankers for the Sakhalin-1 project with deliveries in early 2022 backed by 10 and 15 year period time charters.
  • Long-term time-charter contracts signed with NOVATEK for three next-generation LNG-fuelled MR product carriers, currently under construction at Zvezda Shipbuilding Complex.
  • On 24 September 2019, the Board of Directors of PAO Sovcomflot elected Sergey Frank as its new Chairman. Igor Tonkovidov was appointed as the company’s new President and Chief Executive Officer in the same month.
  • Sovcomflot and NOVATEK established SMART LNG LLC, a joint venture that will own and operate a fleet of LNG carriers to provide safe, year-round LNG transportation for NOVATEK’s projects.
  • Sovcomflot named ‘Company of the Year’ at the 2019 Lloyd’s List Europe Awards.

Sergey Frank, Chairman of the Board of Directors of Sovcomflot, comments:

“In the first year of implementation of our new strategy 2019 – 2025, Sovcomflot significantly exceeded the KPI targets set for 2019 and strengthened its position in the market segments that are of strategic importance for the company, looking into the future.”

Igor Tonkovidov, President and CEO of Sovcomflot, comments:

“Overall, 2019 was a successful year for Sovcomflot. By many measures such as net profit and EBITDA, which amounted to US$225.4 million and US$823 million respectively, the results achieved in 2019 are close to our historic highs.

“The strategy approved by the Board of Directors for the period to 2025 will see us maintaining our focus on expanding the portfolio of large scale and long-term industrial projects, many of which are of great importance for the country's economy. We will continue to place a strong emphasis on our technical capabilities and operations in challenging environments, which represent a unique competitive advantage for the company. Successful implementation of these plans will further enhance SCF’s business stability and the sustainability of our financial results.

“To achieve this, Sovcomflot will continue to focus on strengthening its technological leadership by developing and adopting unique engineering solutions that are required by our customers, while also setting even higher safety, efficiency and sustainability standards for the global tanker industry.”

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