OREANDA-NEWS. December 1, 2008. The Sovcomflot Executive Board has reviewed the results and performance of the Sovcomflot Group for the nine month period ended 30 September 2008. Highlights of the consolidated financial results, reported under International Financial Reporting Standards (IFRS), are as follows:

(In USD million) 9 months 2008  9 months 2007  +/- % 
 Gross revenue  1,260.1  925.5 
  +36.2 
 Net revenue (TCE)  954.4 
  739.1 
  +29.1
 EBITDA  642.1  486.8 
  +31.9
 Net profit  484.1  388.8 
  +24.7
 Total assets  5,800.0  5,274.6  +10.0
 Net Debt  2,081.4  1,979.6 
  +5.1

In the nine months to 30 September 2008, Sovcomflot Group revenue was USD 1.26 billion, a 36.2 per cent increase on the corresponding period in 2007. The Group’s net profit was USD 484.1 million, a 20.9per cent increase on the previous period. Total assets at 30 September 2008 were USD 5.8 billion, an increase of 10.0 per cent on the position at 30 September 2007.

The first nine months of 2008 saw significant progress made with the integration of Sovcomflot and Novoship, as commercial operations were merged and international sales activities unified.

Going forward, the Group benefits from the fact that some two thirds of its fleet operates on a time charter basis, with more predictable and stable earnings through time-charter agreements with the first-class charterers. The remainder of the fleet operates on the spot market, mainly under COAs and  on  consecutive voyages basis.

On 22 July 2008, Mr. Sergey Naryshkin, Chief of Staff of  President Medvedev’s  Executive Office, was elected Chairman of the Board of JSC Sovcomflot following a meeting of the Group’s Board. This followed the election of four new independent Directors to the Board in June.

Commenting on the results for the first nine months of 2008 - Sergey Frank, Sovcomflot Group President and CEO, said:

“The Group has achieved substantial  results, with the integration of Sovcomflot and Novoship progressing according to plan. We are satisfied with the Group’s 9 months 2008 performance. With more than USD 4 billion of contracted future revenues and a clear strategy and focus on providing seaborne energy solutions the Group can face the future with confidence, despite the challenging international macroeconomic conditions.”