OREANDA-NEWS. At a regular meeting of the Sovcomflot Board of Directors, held on 17 April 2008, the annual report on the Company’s and its subsidiaries’ performance results for 2007, prepared by the Executive Board, was presented to the Board members for consideration.

According to the Sovcomflot’s audited Consolidated Financial Statements, in compliance with IFRS, (including Novoship) the Group’s gross revenues (freight and hire receivable) for 2007 reached USD 1,242.7 million (16.1 per cent increase on the comparable figure for 2006). Time charter equivalent revenue amounted to USD 976.0 million (13.7 per cent increase), EBITDA - USD 639.5 million (9.5 per cent increase), net profit - USD 470.8 million (30.8 per cent increase), the gain on the sale of assets (vessels older than 15 years) amounted to USD 120.8 million. The Group’s assets at the year end were USD 5.3 billion. There were 32 new vessels on order, at the year end, representing 2.8 million tonnes deadweight. The average age of vessel in the Sovcomflot Group tanker fleet is around six years.

The Board of Directors discussed the proposals of the Executive Board regarding the distribution of profit and the dividends amount for 2007 prepared on the basis of the current Provisions related to the Sovcomflot dividend policy. The Dividend Provisions for 2007-2009, worked out in accordance with the Governmental Resolution of 29 May 2006 No.774-p, was adopted at the Sovcomflot Board’s meeting in September 2007. The Group’s dividend policy is based on the necessity to reinvest a part of profit in new capital-intensive projects, proceeding from the tasks set by the Shareholder, aimed at the company’s participation in serving offshore oil and gas projects, or LNG transportation.

The Board of Directors approved the proposal of the Executive Board to pay the dividends for 2007 in the amount of RUB 960 million, which exceeds the aggregate amount of dividends paid during last seven years.

On 17 April 2008 the Report on the results of the mandatory public offer for the outstanding minority shares in Novoship was sent to the Federal Agency for Financial Markets. About 24 million ordinary shares of Novoship were obtained. The aggregate share of Sovcomflot and its affiliates amounted to 96.8 per cent. In the near future, in accordance with the current legislation, Sovcomflot will notify the minority Novoship shareholders (3.2 per cent of ordinary shares) of their right to offer the remaining ordinary shares not yet tendered to Sovcomflot.