Gross revenue for 1H16 fell to $680.2 mill from $749.5 mill in 1H15. EBITDA was also down at $385.8 mill, compared to $393.5 mill in 1H15 and net profit was lower at $165.9 mill, compared with $216.3 mill in 1H15.
During the period, SCF issued $750 mill, 5.375% coupon, seven-year term unsecured Eurobonds and in June, signed a $260 mill long-term loan agreement with VTB Bank.
Commenting on the Group’s performance, Sergey Frank, president and CEO of PAO Sovcomflot, said: “From January to July, there was a notable downswing in the global tanker market, with spot rates in certain market segments dropping by one third year-on-year, which has affected the financial performance of the entire industry.
“Analysts foresaw this downturn, so, as part of its development strategy, Sovcomflot has focused its efforts on diversifying its business by beefing up its portfolio of long-term industrial projects with a fixed high rate of return.
“Participation in projects such as Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, and Yamal LNG will guarantee a reliable source of constant income for Sovcomflot even in times of market uncertainty and ensure the stable employment of a significant proportion of our fleet. As of 31st July, 2016, future contracted revenue stood at $8.2 bill,” he said.
Nikolay Kolesnikov, executive vice president, CFO, commented: “Despite the tanker market downturn, which has seen rates decline by 30% in some market segments, Sovcomflot’s net profit adjusted for non-operating revenues decreased by only 5.8%.
“This matches the Group’s performance dynamics during 1H16. Sovcomflot was able to enhance its debt repayment profile significantly following a highly successful unsecured $750 mill Eurobond issue. The funds raised were used to refinance the Group’s debut Eurobonds issued in 2010.
“The success of the Eurobond issue gave Moody’s sufficient grounds to upgrade the Group’s corporate rating from Ba2 to Ba1. Together with a new long-term loan agreement signed with VTB Bank, the amount of external debt financing raised by Sovcomflot during 1H16 exceeded $1 bill, and SCF’s contracted shipbuilding programme is now fully financed,” he concluded.
In SCF’s crude oil segment, TCE) revenues in 1H16 were $266.2 mill (1H15: $280.5 mill). In the oil products transportation sector, TCE revenues in 1H16 were $105.7 mill (1H15: $126.6 mill).
As for the gas transportation segment, TCE revenues in 1H16 were $72.6 mill, a notable increase on the previous first half period of $63.6 mill.
In the offshore services division, TCE revenues in 1H16 were $115.1 mill (1H15: $114.4 mill), while in the other interests segment, the TCE was $16.9 mill (1H15: $32.5 mill).