PAO Sovcomflot: Q1 2020 Results

May 21 2020

PAO Sovcomflot (SCF Group), a global leader in energy shipping and servicing offshore oil and gas production, reported its results for the first quarter (Q1) ended 31 March 2020.

A copy of the Q1 2020 accounts, for the period ended 31 March 2020, is available in the Investors section of the website:


Operational highlights for Q1 2020

  • SCF Group took delivery of SCF La Perouse, a 174,000-cbm new-generation Atlanticmax LNG carrier, time chartered to Total. The Group has two further vessels in this series under construction, time chartered to Royal Dutch Shell with deliveries in 2020-2021
  • SMART LNG, a joint venture of Sovcomflot and NOVATEK, signed long-term time charters for four Arc7 icebreaking LNG carriers with Arctic LNG 2. At the same time, SMART LNG concluded an agreement with VEB.RF Group for lease financing the construction of these vessels at Zvezda Shipyard in Russia’s Far East
  • SCF Group received the ‘Project Financing Deal of the Year Award’ at the 2019 Deal of the Year Awards promoted by Marine Money, an international maritime finance publication. The award-winning transaction was an eight-year USD 176 million non-recourse credit facility, concluded in September 2019 with three banks (Sumitomo Mitsui Banking Corporation; Société Générale, and Shinsei Bank), to refinance two LNG carriers, Grand Aniva and Grand Elena. Marine Money highlighted the environmental element of the deal. With this facility, SCF Group pioneered the support of the Poseidon Principles, an initiative by the international banking community that promotes reducing the carbon footprint of shipping.


Commenting on the Q1 2020 results, Igor Tonkovidov, President and CEO of Sovcomflot, said:

“The first quarter saw us operating against the backdrop of a seasonal upswing in tanker freight rates, which benefitted shipowners. At the same time, the oil market was extremely volatile during the quarter. Coupled with new emerging non-market challenges, this called for SCF’s team to perform at its best.


“In this context, the Group achieved a significant growth in its key operating and financial metrics over the first quarter this year. The conventional fleet overperformed on the back of a strong spot market environment which, together with a further increase in overall productivity and operational efficiency, helped drive the increase in revenues. By all measures, our performance indicators exceeded the targets set for the quarter, as well those related to the results achieved in Q1 2019. We fully met our obligations for large-scale projects in the Arctic and Russia’s Far East that we service, and successfully achieved all goals set by the shareholder for the period.”


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