OREANDA-NEWS.   OAO Sovcomflot held a board meeting to review SCF Group results for 2012. The board of directors approved a preliminary annual account and bookkeeping report for the year.

 In line with current dividend policy, the board of directors gave a preliminary recommendation to the annual OAO Sovcomflot shareholders’ general meeting to approve dividends for work in 2012 in the sum of 300 million roubles (25% of the company’s consolidated net profit according to IFRS).

 “Despite continuing stagnation on freight markets, SCF consistently implemented its tasks and projects in line with the company’s development strategy, strengthened its leading positions in traditional maritime energy transportation segments and successfully developed new areas of activity. Important results for us this year include: our participation in large-scale oil and gas projects (both in Russia and abroad), the commissioning of new state-of-the-art vessels, as well as an improvement in maritime safety standards and the quality of our services. The company’s stable financial position means we can continue to fully implement our investment programme, which aims to increase the operational efficiency of the fleet, expand our range of services, and develop both our technical and human resource potential.” – Ilya Klebanov, Chairman of SCF board of directors

 “This was the fourth year of stagnation on the tanker freight market. The Clarksea tanker index fell by 65% in comparison with 2008. Profitability figures across all segments of the tanker industry were close to their lowest levels in over ten years. Despite these negative conditions, our company continued to develop steadily; we achieved positive financial results and were able to fully implement the tasks laid out in the development strategy approved by the board of directors for the period until 2017. Gross revenue in 2012 totalled USD 1,443.4m. EBITDA was USD 457.0m. Net profit was USD 33.2m. The company signed numerous long-term contracts with leading partners for the transportation of liquefied natural and petroleum gas, expanded its participation in the servicing and support of large offshore oil and gas projects – including complex towing operations, the installation of base structures for drilling platforms, and maritime geological exploration. Our company is steadily expanding its portfolio of industrial projects, which is clear from the growth in the volume of our contract revenue for future periods – at the end of 2012 this revenue totalled USD 5.2 billion. These funds will ensure the company’s financial stability in the medium term.” – Sergey Frank, President of OAO Sovcomflot

SCF Press Office

Sovcomflot Group (SCF) is Russia’s largest shipping company, is a world leader in the maritime transportation of hydrocarbons and provides support for shelf exploration and oil & gas production. The SCF fleet (owned and chartered) includes 159 vessels with a combined deadweight of 12 million tonnes. It specialises in the transportation of hydrocarbons from areas with challenging icy conditions and a third of the fleet’s vessels have a high ice class. Sovcomflot supports large-scale offshore energy projects in Russia and the rest of the world, including: Sakhalin-I, Sakhalin-II, Varandey, Tangguh and Peregrino. The company is registered in Saint-Petersburg and has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, Madrid, Singapore and Dubai. www.scf-group.ru 

Main results of 2012:

 • Gross revenue totalled USD 1,443.4m (+0.3%*)
 • Time charter equivalent (charter income after cost): USD 929.6m (+0.2%*)
 • EBITDA: USD 457m (-0.8%)
 • Net profit: USD 33.2m (-38.2%)
 • On 31 December, 2012, the SCF Group fleet consisted of 158 vessels (owned and chartered) with a total deadweight of 11.7 million tonnes (+8.5%*)
 • Average age of tankers in the fleet: 7.7 years (compared with the average global age of 17 years)
 • In one year the fleet added 9 new vessels with a combined deadweight of over 0.6 million tonnes
 • 10-year time charter agreements were signed with STASCO (a subsidiary of Royal Dutch Shell) for the long-term charter of two ice class 1C (Ice2) LNG carriers, each with a cargo capacity of 170,200mі.
 • 10-year time charter agreements were signed with petrochemical holding SIBUR for the long-term charter of two ice class 1B (Ice3) LPG carriers, each with a cargo capacity of 20,600mі.
 • The SCF and Glencore International AG joint venture fleet added a further four LR1 class product carriers (individual DWT: 74,000 tonnes), which were brought into commission in the first quarter of 2012.
 • A credit agreement worth USD 140m was signed with Citibank and Bank of America Merrill Lynch to finance the construction of two VLCC tankers. The tankers will be engaged in operations as part of long-term contracts with PetroChina International – one of the world’s leading oil & gas companies.
 • Successfully completed a unique and challenging towing operation to transport and install the base structure for the Berkut drilling platform in the Arkutun-Dagi field (Sakhalin-I project, operated by Exxon Neftegas Ltd.).
 • In the third quarter of 2012, tanker SCF Amur successfully completed a new deepwater high-latitude crossing of the Northern Sea Route with an OAO Gazprom Neft petrochemical cargo of 44,000 tonnes.
 • As part of its continuing development strategy, OAO Sovcomflot created the SCF Arctic company group (Saint-Petersburg), bringing together the fleet and companies engaged in the support and servicing of Russian offshore projects.
 • Sovcomflot Group opened an office in Dubai (United Arab Emirates), strengthening its presence in the Persian Gulf – one of the world’s main centres of oil & gas production and maritime hydrocarbon transportation.
 • Multifunctional icebreaking supply vessel Vitus Bering was brought into commission and began servicing drilling platforms in the Arkutun-Dagi field (Sakhalin-I) as part of an agreement with project operator Exxon Neftegas Ltd.
 • Sovcomflot training and engineering centres were opened in Saint-Petersburg. These centres will raise the level of maritime safety and quality of service and will provide professional preparatory training for SCF Group crews – first and foremost, for work on the company’s Arctic and sub-Arctic projects.