Sovcomflot Releases 2010 Audited Results
OREANDA-NEWS. April 15, 2011. § 2010 Gross revenue of USD 1,312.9 million increased 7.4 per cent compared with 2009 USD 1,222.1 million
§ 2010 EBITDA - USD 533.3 million, down 3.0 per cent from USD 549.7 million in the previous year
§ 2010 net assets - USD 3.12 billion, compared with USD 3.01 billion in 2009
§ 13 vessels, predominantly newbuildings, comprising 4 Suezmax tankers, 3 Aframax tankers, 2 Arctic shuttle Panamax type tankers, ice-breaking supply and other vessels were delivered and acquired during 2010, the owned fleet is of 10.4 million tonnes DWT (9.9 million tonnes DWT - in 2009)
§ Leadership consolidated in Arctic/Sub-Arctic and ultra harsh environment hydrocarbon shipping and further expansion into higher value-added services on the basis of long-term relations with core clients
§ A strategic long-term cooperation agreement with a major Chinese oil company was signed in November 2010, marking an entry into another market sector - VLCC tankers
§ SCF Alpine, LR1 class tanker, was delivered in November 2010 under a joint venture with a major international commodities trader, marking it a step into a new market segment
§ SCF Baltica, an Aframax ice class 1A Super tanker, with a cargo of gas condensate successfully performed a unique voyage across the Northern Sea Route to China in August 2010, a new commercially viable route to Asia Pacific markets to serve the growing requirements of oil majors
§ Additional expansion into offshore supply services & ice management services following the acquisition of one and tender award for two further IBSVs (Ice Breaking Supply Vessels) to serve the Sakhalin-1 project
§ October 2010 - company completed its first unsecured debt capital markets transaction – USD 800 million 7-Year Eurobond.
“In 2010 Sovcomflot (SCF) Group delivered a robust financial and operating performance despite the background of another challenging year for the shipping industry - the year of the weakest freight market in the past decade. We have out-performed our peer group in revenue growth and profitability. This has been possible whilst continuing to enhance the quality of our services, implementing programmes designed to ensure safe navigation for our fleet, taking further steps to protect the marine environment and to reduce the environmental impact of our activities. Most of our success reflects the collective contribution of over 8,000 employees on shore and at sea across SCF Group. Much credit is due to our hard working and highly experienced Captains and crews.” says Sergey Frank, President and CEO of Sovcomflot.
“Today, in addition to being a leading owner and operator of oil and gas tankers, SCF Group is developing as an integrated provider of energy transportation logistics. We are engaged in the transhipment of crude oil via FSO facilities; the development of effective logistics for energy resources transportation in the harsh climates of the Arctic/Sub-Arctic and Far Eastern seas; providing shuttle tanker services and supply vessels for offshore production platforms,” notes Senior Executive Vice-President of Sovcomflot, Evgeniy Ambrosov.
“During the year we had a successful and well-received debut in the Eurobond markets adding to the Group’s investment capacity and allowing it to take advantage of market opportunities. We maintain a conservative financial policy, with a significant portion of the Group’s contracts being of long-term nature. The Group’s move into higher value-added sectors combined with very limited exposure on chartered-in tonnage, modest orderbook and capital discipline at a time of inflated prices in previous years continue to underpin the delivery of long-term sustainable growth in line with the Group’s strategy. Future contracted revenues at the end of 2010 amounted to USD 4.9 billion”, comments Nikolay Kolesnikov, Executive Vice-President of Sovcomflot, Chief Strategy & Financial Officer.
“Throughout 2010, SCF Group has continued to invest in the training, development and wellbeing of its crews. This ongoing commitment, together with operating one of the most modern, technologically advanced and environmentally friendly fleets in the world, lies at the heart of everything we do. “Safety Comes First” is an imperative deeply embedded in the SCF corporate culture”, says Sergey Popravko, a Member of the SCF Executive Board.
Gross revenue for the year ended 31 December 2010 was USD 1,312.9 million, an increase of 7.4 per cent over the previous year. Time charter equivalent earnings increased by 1.3 per cent to USD 943.7 million (2009 USD 932.0 million). Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 3.0 per cent to USD 533.3 million (2009 USD 549.7 million). 2010 net profit was USD 164.3 million (2009 185.3 million).
As at 31 December 2010, the Group had total assets of USD 6,513.0 million (2009: USD 6,002.2 million) and net assets of USD 3,123.0 million (2009 USD 3,012.7 million). At the year end, the Group’s net debt stood at USD 2.44 billion (2009 USD 2.31 billion), and its net debt ratio was maintained at a conservative by industry standards level of 43.9%. 2010 saw SCF’s successful debut in the Eurobond markets, raising seven year funds at a coupon of 5.375 per cent. For this tenor, this was the lowest ever coupon for a Russian issuer and reflected the underlying strength and prospects for the Group.
The Group maintained investment grade credit ratings during the year (Baa3 from Moody’s / BBB- from Fitch, both with a “stable” outlook).
At the end of the year, the Group had cash and bank deposits of USD 512.2 million (2009 USD 335.7 million).
During 2010, SCF further consolidated its ownership position in Novoship (through a series of share buy-backs performed by Novoship), raising its effective control of the company to 87.62 per cent (2009 86.63 per cent), and its effective ownership of Novoship ordinary shares to 98.03 per cent.
SCF Group retains ample access to liquidity and is supported by solid cash flows with good levels of visibility, reflecting the long-term nature of the Group’s relationships with largely blue-chip customers. The highly successful debut in the Eurobond markets helped maintain a conservative debt/capitalisation ratio by industry standards.
Looking ahead, while the Group has ambitious expansion plans, these are supported by strong and growing contracted revenues. The continuing move into higher value-added activities together with a strong and sustainable financial profile, leave SCF Group well placed to deliver long-term sustainable earnings growth.
2010 Operating Highlights
Chartering activity
The Group maintains a balanced chartering policy with 61.4 per cent (2009 63.2 per cent) of vessel days in operation during 2010 coming from time charters. Meanwhile, 38.6 per cent (2009 36.8 per cent) of the fleet was operating on the spot market during the year.
SCF’s growing involvement in serving industrial hydrocarbon projects continued through 2010. This important area is set to provide a steady increase in the Group’s long-term fixed rate revenue and cash-flow, providing yet further visibility of forward earnings.
Fleet development
At the end of December 2010, the Group owned 135 vessels representing 10.4 million tonnes DWT. During the year 13 new vessels were delivered and acquired, comprising four Suezmax tankers; three Aframax tankers; two Arctic shuttle tankers; two escort tugs, one Panamax tanker and one acquired ice-breaking supply vessel. Nine older tankers were sold along with two dry cargo vessels. The Group had 19 new vessels on order at the end of 2010, representing some 2.1 million tonnes DWT.
A detailed fleet list and updates on vessels can be found in the Fleet section on the Group’s website (www.scf-group.com).
SCF continued to invest during 2010 in the reduction of its environmental footprint. SCF Energy Efficient Programme has been approved by SCF Board to develop green tools to assist in reducing energy consumption at Sovcomflot Fleet and decreasing the impact of shipping on the environment. SCF Energy Efficient Programme also represents a joint collaboration between Sovcomflot and the Russian Research Institutes and the Marine Academies. The project has stipulated one million USD annually for Science Technology and Innovation projects within the special emphasis on Green Technologies. Overall Sovcomflot strategy provides more than 100 million USD for the fleet modification within next five years. SCF takes a proactive approach to the environmental responsibility. While complying with the existing environmental regulations, the company goes ahead setting innovative goals and ensuring the environmental progress in new areas.
New market segments
In line with the Group’s development strategy 2010-2015, SCF entered the LR1 products tanker segment in 2010. This followed the delivery of SCF Alpine in November under a joint venture with a major international commodities trader – Glencore International AG. The joint venture is set to acquire and handle the commercial management of five coated Panamax products tankers (LR1 class). Technical management of the vessels will be undertaken by Unicom – a subsidiary of Sovcomflot.
Another new market segment entered during the year is that of Very Large Crude Carriers (VLCC), arising from a strategic long-term cooperation agreement with Chinese National Petroleum Corporation (CNPC), signed in November 2010 in St. Petersburg. As a result, orders were placed for two 320,000 tonne DWT VLCCs in China for delivery in 2013. The ships will be employed under long-term contracts for the transportation of CNPC cargoes. Vessels of this type will expand SCF’s coverage of the tanker market and strengthen its competitive capabilities in the Asian market. Above all, the agreement between SCF and CNPC is aimed at the development and steady growth of cooperation between the companies.
Further expansion into offshore supply services continued during the year with the acquisition of an Ice Breaking Supply Vessel (IBSV) from FESCO. The 4,200 tonne ice enhanced vessel, SCF Sakhalin, will serve Sakhalin 1 under charter to Exxon Neftegas. In December 2010 the Group won a tender issued by Exxon Neftegas for the construction and long-term charter of two further IBSVs designed to service the Arkutun-Dagi offshore oil field developed under the Sakhalin-1 Project
Operating milestones
In January, SCF Group passed two important milestones. The first, involving the Varandey project, saw an initial 10 million tonnes of crude oil shipped by SCF’s Arctic shuttle tankers of the Vasiliy Dinkov type. These vessels load from an innovative Fixed Offshore Ice-Resistant Offloading Terminal at Varandey in the Barents Sea and represent a unique year-round shuttle tanker operation above the Arctic circle. The second milestone was reached when SCF Group’s tanker Grand Aniva carried the 100th shipment of Russian liquefied natural gas from the production facility at Prigorodnoye, Sakhalin Island.
The Group’s fleet of arctic shuttle tankers was expanded with the delivery of Mikhail Ulyanov and Kirill Lavrov, 70,000 DWT vessels ordered by SCF from the Admiralty Shipyards, the first time such unique vessels were constructed in Russia.
Northern Sea Route (NSR)
17-27 August 2010, – The Aframax tanker, SCF Baltica, successfully transited the Northern Sea Route from Cape Zhelaniya (Novaya Zemlya Island) to Cape Dezhnev, at an average speed of 10 knots. The transit was part of a longer voyage from Murmansk to Ningbo (China) undertaken by the ice class 1A-Super (Arc5) 117,000 tonnes DWT tanker. SCF Baltica was the largest vessel ever to cross the 2,300 nautical mile NSR and she did so with a cargo of 70,000 tonnes of gas condensate.
The entire route of 6,600 miles was covered in 22 days. It represented a saving of some 5,500 miles, compared with the traditional eastbound voyage via the Suez Canal. It also achieved a saving of some 700 tonnes in bunkers, equating to a reduction of some 2,500 tonnes in CO2 emissions.
Considering the results of the voyage, SCF’s experts and those of Rosatom and Russia’s Ministry of Transport will now adjust the previous risk assessment related to navigating along the Northern Sea Route. The success of this pioneering voyage has opened the way for SCF to schedule further voyages involving an Arctic Panamax shuttle tanker (70,000 tonnes DWT and ice class Arc6), and a Suezmax tanker (162,000 DWT and ice class Arc4), in 2011. SCF is looking to expand the time limits for Arctic navigation and to increase the quantity of cargo shipped along this route.
Corporate governance
In 2010 SCF Group performed a scheduled rotation of its auditors and appointed Ernst & Young, one of the world’s ‘Big Four’ audit firms.
SCF Group is committed to upholding high standards of corporate governance. Reflecting this, Marlen Manasov and David Moorhouse joined the Board in 2010 as independent Non-executive Directors. Both bring with them significant experience of the financial markets and shipping industry respectively. Their arrival means that four out of nine members of the Group Board are independent Non-executive Directors.
London High Court (Commercial Court) litigation - Fiona Trust/Intrigue Shipping (SCF Group) vs Yuri Nikitin and Others
SCF’s decision to litigate has already been vindicated. As a result of the Judgment handed down in 2010 SCF Group has awarded in excess of USD 60 million in addition to USD 84 million already received in earlier settlements in compensation for fraudulent transactions undertaken by Mr Nikitin and his associated companies between 2001 and 2004.
Today the judgment has dispelled any doubt that the SCF Group had been the subject of serious fraud. SCF is now considering an appeal to the Court of Appeal in relation to some of the aspects of the 2010 Judgements where it was not successful. In addition, further litigation is being pursued by Novoship.
Комментарии