SCF's Profit Zoom Fourfold

SCF Group (PAO Sovcomflot) reported steep jump in their net profit to USD 354.5 million from USD 83.9 million in the earlier year.

Its gross revenue increased by 7.6 per cent to USD 1,483 million (2014: USD 1,378 million) and its time charter equivalent revenue rose by 18.8 per cent to USD 1,240.1 million (2014: USD 1,044.0 million).

The company said that its total future contracted revenues amounted to USD 8.5 billion.

During the year LNG carriers SCF Melampus and SCF Mitre (each 170,200 m3 capacity) were delivered and commenced long-term time charters to Royal Dutch Shell. 

USD 756 million of new debt capital was raised, including two major long-term credit facility agreements to finance four new multi-functional ice breaking support vessels and three new Arctic shuttle tankers for Novy Port project on the Yamal peninsula. Total future revenues for these contracts amount to USD 2.9 billion. In 2015, Sovcomflot also signed two refinancing agreements amounting to USD 130 million in total. 

President and CEO of Sovcomflot, Sergey Frank, commented, “We are very pleased with our results for 2015, which have exceeded our expectations. Significantly, there has been a fourfold increase in our bottom line profits in 2015 compared with the previous year.

“Such result was achieved to a great extent due to Sovcomflot’s ability to consistently execute its core strategy aimed at continued growth of our project business. Also contributing to our success were a solid technical performance and flexible chartering policy which helped Sovcomflot to take full advantage of the major rebound in the tanker markets.

“The major source of our success is our human capital. I would like to commend the entire Sovcomflot team, both at sea and ashore, for their contribution to this achievement, and for their steadfast dedication, expertise, and commitment to highest standards of quality and safety. To emphasize how valuable team efforts are for Sovcomflot and further motivate the employees to accomplish the strategic goals of the company, we’ve launched our first long-term incentive programme (LTIP) for vessel masters, ship’s engineers, and shore service employees in 2015. The Executive Board is extremely grateful to the Board of Directors for the support it gave this initiative.

“Looking ahead, our core strategy remains unchanged. We will maintain our leading position as one of the world’s largest tanker fleet owners and operators. At the same time Sovcomflot will continue to build a robust pipeline of fixed income projects in LNG and offshore services. In the short term, we remain cautiously optimistic with regard to the freight market dynamics due to the fundamental supply and demand balance.”