Sovcomflot Reports on Slippery 2013 Financial Slope

MarineLink.com March 20, 2014

SCF Melampus: Image courtesy of the owners

SCF Group (Sovcomflot)  has released its audited financial results for the year ending 31, December 2013, indicating a slip in profitability during what they describe as another challenging year for the international tanker industry.

2013 Financial 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 (including nine tugs leased to Rosnefteflot and JVs fleet), 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.