Sovcomflot Reports 2013 Results

Despite another challenging year for the international tanker industry, Sovcomflot maintained operating profitability and made good progress in implementing its strategy to develop and grow in the key gas and offshore sectors.

2013 Highlights

  • Gross revenue: USD 1,262.8 million (2012: USD 1,353.0 million)
  • EBITDA: USD 382.1 million (2012: USD 406.1 million)
  • Net loss: USD 39.2 million in 2013 (2012: USD 32.9 million net profit)
  • Adjusted net profit (excluding non-cash impairment provisions and results on disposal of assets) USD 11.6 million
  • Total fleet size 158 owned and chartered vessels, representing 12.6 million tonnes dwt as at the year end (2012: 158 owned and chartered vessels representing 11.7 million tonnes dwt)
  • World’s largest tanker company with an average fleet age of less than 8 years
  • Steady fleet growth with delivery of seven new vessels (681,824 tonnes dwt in total) and expansion into new segments of Very Large Crude Carriers (VLCC) and ice-class LPG gas carriers, on the back of long-term fixed-rate contracts with national oil and petrochemical companies
  • Two new multifunctional icebreaking supply vessels – Vitus Bering and Alexey Chirikov (Icebreaker Ice 10) – start operations at Sakhalin I, under long-term charter to the project operator Exxon Neftegas Ltd
  • Sibur Voronezh and Sibur Tobol 20,000 cbm ice-class LPG gas carriers delivered and entered service, under long-term time-charter agreement with partner SIBUR, to transport LPG from the Ust-Luga terminal, Russia
  • The Group’s first Very Large Crude Carrier (VLCC) Svet employed under a long-term charter with Petrochina International, named a Significant Ship of 2013 by Britain’s Royal Institution of Naval Architects
  • Gas Natural extends time-charters for ice-class LNG carriers SCF Polar and SCF Arctic (world’s oldest LNG carrier in service awarded eligibility under US Coast Guard’s prestigious Qualship21 programme reflecting strength of Sovcomflot’s operational and vessel maintenance standards)
  • Further implementation of programme of commercial voyages along the Northern Sea Route, involving ice-class tankers SCF Yenisei and Viktor Bakaev (first transit completed by the Group in an East-West direction) and the bulk carrier NS Yakutia.

Commenting the results Sergey Frank, President and CEO of OAO Sovcomflot said: “Conventional tanker operations faced continued headwinds throughout the year, though as we ended 2013 and into the first quarter of 2014, some welcome upswings in earnings indicate that the tanker market may have finally bottomed. With the spot market for crude oil tankers firming up in the last months of 2013 and early 2014, we expect first quarter 2014 performance to show an encouraging year on year growth and given the substantially reduced order book for crude oil tankers, we anticipate a further gradual strengthening of the market throughout the year, although not without some volatility.

SCF will continue with its aim to remain a world leader in focused areas of the conventional tanker segment, especially in the key Aframax and Suezmax sectors which remain fundamental to Russian exports both in the East and West of the country.

FULL CONSOLIDATED FINANCIAL STATEMENTS

 

scf, March 21, 2014

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