Sovcomflot highlights Q3 LNG activity

Sovcomflot (SCF Group) has reported results for the nine months and third quarter ended 30 September 2014.

Tanker market

Commenting on the results, Sergey Frank, President and CEO, said: “Sovcomflot has performed strongly in the first nine months of 2014, with revenue and profits significantly ahead of the comparable period last year. These financial results reflect an improved freight rate environment over the period, especially within the crude oil segment of the tanker market. Equally, they demonstrate the benefits of our work to develop long-term relationships with ‘blue chip’ charterers across the globe, in order to provide safe and reliable transportation for their cargoes.

“During the period, we continued to focus on implementation of the Group’s strategy. This includes increasing the scale, range of services and contribution of our premium operations such as gas transportation and offshore support activities, with significant progress also being made in the seismic segment.

LNG carriers

“The company took the delivery of two ultra-modern LNG carriers of the Velikiy Novgorod series, and a second VLCC (320,000 DWT). These ships are operated under long-term agreements with OAO Gazprom and Petrochina International (China) respectively. Elsewhere, we completed several important new long-term agreements, including for the construction and operation of four IBSV’s for Sakhalin Energy, and for a unique Arctic LNG carrier to serve the Yamal LNG project. The delivery of these vessels is scheduled from 2016 to 2017.”

Nikolai Kolesnikov, Senior Executive VP and CFO, added: “OAO Sovcomflot has benefited from stable liquidity, whilst improving its credit position, during the first nine months of 2014. Our earnings visibility remains good, with contracted future revenues at some US$ 8.8 billion including our joint ventures.”

Financials

• Gross revenue: nine months 2014 US$ 1059.2 million; Q3 2014 US$ 384.1 million.
• EBITDA: nine months 2014 US$ 411.3 million; Q3 2014 US$ 159.6 million.
• Net profit: nine months 2014 US$ 109.1 million; Q3 2014 US$ 45.4 million.

Fleet

As at 30 September 2014, the SCF Group fleet comprised 153 owned and chartered vessels amounting to over 12.7 million tonnes DWT in total.

There were ten vessels under construction at the period end, including: two LNG carriers; one ice-breaking LNG carrier; three Arctic shuttle tankers; one multi-functional ice breaking supply (MIB) vessel; three MIB standby vessels.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/19112014/sovcomflot-q3-results-and-lng-activity-1816/