PAO Sovcomflot: Tanker Market is Challenging
PAO Sovcomflot (SCF Group) continued to increase the share of its fleet serving long-term energy projects over the first quarter ending 31 March 2018. This helped offset the negative impact of the protracted decline in freight rates that continues within the conventional tanker freight markets. Nikolay Kolesnikov, Executive Vice President and CFO of PAO Sovcomflot, commented on the quarter's results: "In the first quarter of 2018, conditions within the global conventional tanker market remained extremely challenging.
Sovcomflot tankers Move one mi tonnes oil from Novy Port O&G condensate field
Sovcomflot’s three unique Arctic shuttle tankers, of the Shturman Albanov series, have now transported one million tonnes of crude oil produced at the Novy Port oil and gas condensate field, from the Gulf of Ob (Kara Sea) to the port of Murmansk. The milestone millionth tonne cargo of oil was loaded on Shturman Albanov on 29 January 2017 at the Arctic Gate marine terminal located near Cape Kamenny (Gulf of Ob). In total, SCF tankers have completed 33 voyages with Novy Port grade oil since last autumn.
Market Volatility Affects Sovcomflot
Sovcomflot is one of the world’s leaders in energy shipping as well as in servicing offshore upstream oil and gas projects. It has reported lower time charter equivalent revenue (TCE) of USD 1,142.2 million (2015: USD 1,240.1 million), EBITDA of USD 706.5 million (2015: USD 780.1 million) and net profit of USD 206.8 million (2015: USD 354.5 million). Sergey Frank, President and CEO of Sovcomflot said: “Sovcomflot has delivered a solid set of results for 2016, despite market volatility in a year that has severely tested our industry.
Icebreakers Ordered for Neft’s Novy Port Project
Aker Arctic and Vyborg Shipyard have confirmed a contract for the design of two new icebreakers based on Aker ARC 130 A design. The icebreakers will be used in the oil terminal operated by LLC Gazprom Neft Novy Port in the Gulf of Ob. The new icebreakers represent a further development of the Aker ARC 130 icebreaker concept originally developed for the Finnish Transport Agency. The new design, Aker ARC 130 A, will utilize similar propulsion concept consisting of three azimuth thrusters – two in the stern and one in the bow of the vessel.
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.
Vyborg Shipyard to Build Icebreaker
Vyborg Shipyard signed a License and Concept Design Agreement with the Finnish engineering company Aker Arctic Technology for two icebreaking support vessels. Two multifunctional diesels-electric- powered icebreakers 22 MW will be built at Vyborg Shipyard by order of LLC Gazprom Neft Novy Port. In the nearest time Aker Arctic engineers will start development of concept design package and perform model tests in open water and in ice conditions. At a later stage on the basis of the concept design there will be developed technical design for the vessels.
Bids Placed for Novy Port Icebreaker Contract
The tendering process for the Yamal Novy Port terminal icebreaker design and build contract has kicked off, seeing seven companies submit bids for the project, IAA PortNews reported. The tender, announced by Vyborg Shipyard entrusted to build the vessels, received bids for the icebreaker’s design and construction from Spetssudoproekt CJSC, Nordic Yards Holding GmbH, Aker Arctic, FSUE Krylov State Research Center, Design Bureau for Shipbuilding “Vympel” OJSC, Marine Engineering Bureau – Design-SPb CJSC, and KhS Morskoye Proektirovanie LLC.
First Shipment of Russian Novy Port Oil
Gazprom Neft provided a summer shipment of oil from Novoportovskoe deposit – for the first time, the raw material was taken by sea and sent to European consumers, according to Russian official news agency Arctic-Info. The new oil called Novy Port is the light and low sulfur content (about 0.1%) category and exceeds not only the Russian Urals blend in quality, but also Brent. The tanker will deliver the raw materials to Europe in September, and in the ice-free season of 2014, it is planned to sent out two tankers with more than 80,000 tonnes of the new variety of Novy Port oil.
Russian Award for Sovcomflot
PAO Sovcomflot (SCF Group) was awarded first prize at the 2017 International Competition of Scientific, Technical and Innovative Developments aimed at the Exploration and Development of the Arctic and the Continental Shelf, held under the auspices of the Russian Ministry of Energy. The prize was awarded to a team of Sovcomflot experts for the development and practical implementation of technological solutions enabling year-round oil shipments from the Gulf of Ob. The winning team was led by Igor Tonkovidov, Executive Vice-President and Chief Technical Officer of Sovcomflot.
Sovcomflot Profits slip
Reviewing the company’s financial and operating results for the first half year ended 30 June 2016, on 23 August 2016, the Executive Board of PAO Sovcomflot (“SCF Group”) noted that despite a tanker market downturn, the company was able to demonstrate strong performance and strengthen its financial position while continuing to enhance its industrial projects portfolio in accordance with its Development Strategy. * Five new vessels launched: pioneering 172,600 m3 capacity ice breaking LNG carrier (Arc7 ice class) for Yamal LNG project (January)…
Sberbank, Sovcomflot Sign $106m Finance Deal
The largest bank in Russia Sberbank and shipping company Sovcomflot have signed a new USD 106 million project financing agreement, with a term of up to 14 years. The funds will finance the construction of a high ice class Arctic shuttle tanker (Arc7) for the Novy Port project, under a long-term agreement with Gazprom Neft. This is the third major transaction of its kind between Sberbank and Sovcomflot. The first joint project between the companies was in 2015, to finance the construction of three Arctic shuttle tankers to transport crude oil from the Novy Port field.
Russian Icebreaker Construction Underway
The ceremonial launch of construction of the lead icebreaking support vessel for Gazprom Neft Novy Port was held today at Vyborg Shipyard, a corporate member of the United Shipbuilding Corporation. Guests were greeted by Kirill Voroshilov, First Deputy General Director of the Vyborg Shipyard, who noted, “The newbuild laid down at the shipyard is a multipurpose vessel and is capable of coping with a great number of tasks while operating in heavy ice conditions. This icebreaking vessel is unique and to date it has been unrivalled on a global scale. The icebreaking support vessel will be built in accordance with a design targetting maximum icebreaking capability and considerable maneuverability with comparatively shallow draught.
‘Landmark Year’ for RS in 2014
For Russian Maritime Register of Shipping (RS), 2014 marked the 101st year of its activities. The classification society said 2014 also marked a landmark year, as the construction of the world's first Arctic LNG carrier began to RS class. The new 300-meter-long ship carrying liquefied natural gas in membrane tanks will be able to operate in ice of about two meters thick. There are more than 150 vessels that are ordered or already under construction to the RS class with the total gross tonnage of about 2 million, RS noted, of which 11 are gas carriers, 21 icebreakers and specialized support vessels, 27 tankers, 30 tugs and seven fixed offshore ice-resistant platforms.
Wärtsilä Power for Two Icebreakers
Two new Aker Arctic designed icebreakers, under construction at the PJSC Vyborg Shipyard in Russia, will have their main power provided by Wärtsilä generating sets. The ships are being built for Gazprom Neft based in St.Petersburg, Russia. The contract was agreed between Wärtsilä and Ruselprom Group and was signed in October. The new icebreakers will operate in arctic conditions with outside air temperatures as low as minus 50°C and ice thicknesses up to 2 metres. Because of these challenging operational considerations…
Sovcomflot Group, Sberbank CIB Sign Credit Facility Agreement
Sovcomflot Group and Sberbank CIB have signed a 14-year $340 million credit facility agreement to finance the construction of three Arctic shuttle tankers for the Novy Port project (project operator: Gazprom eft). Novy Port is one of the largest oil and gas condensate deposits on the Yamal peninsula in Russia. The vessels will serve as part of project infrastructure designed to enable year-round shipment of crude oil from an offshore loading terminal in the Gulf of Ob. The commercial production from the field will start in 2016. The transaction involves Sberbank Europe AG, a subsidiary bank of PJSC Sberbank. Commenting on the transaction…