Sovcomflot Modern commercial fleet SKF
Russia
Central Federal District of the Russian Federation
Moscow
Top managers:
Olersky Victor Alexandrovich
Owners:
United Shipbuilding Corporation (USC)
Owners
Sovcomflot Group (SKF Group) is the largest shipping company in Russia, one of the world's leading companies for offshore transportation of hydrocarbons, as well as servicing offshore exploration and production of oil and gas. The own and chartered fleet includes 146 vessels with a total deadweight of more than 12.7 million tons. Over 80 vessels have an ice class.
Sovcomflot participates in servicing large oil and gas projects in Russia and the world: Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, Yamal LNG, Tangguh (Indonesia). The head office of the company is located in, St. Petersburg representative offices are located in,, To Moscow,, Novorossiysk,, and Murmansk Vladivostok. Yuzhno-Sakhalinsk London Limassol Dubai
Performance indicators
2023: Earnings rise 2.5 times to $943.3 million
In 2023, the net profit of the Russian shipping company Sovcomflot reached $943.3 million. This is almost 2.5 times more compared to 2022, when the figure was $385.2 million. The corresponding figures are given in the financial report published on March 18, 2024.
It is noted that the activities of Sovcomflot are influenced by geopolitical factors and sanctions from unfriendly countries. Despite this, at the end of 2023, the company was able to increase revenue by 22.6% on an annualized basis - from $1.89 billion to $2.32 billion. Revenue on the basis of time-charter equivalent rose by 42.3%, amounting to $2.04 billion against $1.44 billion in 2022. The time charter measure reflects the amount of revenue from freight and rental of ships for a certain time, minus travel expenses.
The report says that in 2023, Sovcomflot's profit from the operation of ships reached $1.67 billion. For comparison, a year earlier, the value was $1.14 billion. Thus, growth was recorded at around 47%. At the same time, operating costs rose by 24.4% - from $298.6 million to $371.4 million. General and administrative expenses decreased on an annualized basis by 10% - from $81 million to $72.9 million. Financial expenses decreased from $141.5 million to $93 million, that is, by 34.2%.
 | In the reporting period, the company demonstrated strong financial results due to stable income within the current portfolio of long-term contracts, as well as the operation of the fleet in high market conditions, the published document says. |  |
As of the end of 2023, the value of Sovcomflot's assets, as noted in the report, was about $7 billion. The vessels in operation accounted for approximately $5.02 billion. Cash and deposits - $1.25 billion.[1]
2022: Revenue growth 31.2% to $1.44 billion
Sovcomflot (SKF) in 2022 increased revenue by 31.2% compared to 2021 - to $1.44 billion. The company's net profit increased 10.8 times - from $35.8 million to $385.2 million. The group, which specializes in the transportation of liquefied gas, oil and petroleum products, announced its results of financial and economic activities according to IFRS standards on March 20, 2023.
The net debt of one of the world's largest tanker fleet operators by the end of 2022 amounted to $928.3 million, down 61% from a year ago. EBITDA for 2022 increased by 53.2%, to $1.04 billion. Operating profit increased 2.5 times, to $577.8 million. Profit before tax - $452.4 million.
As Interfax writes with reference to the reports of Sovcomflot under RAS, in 2022 the group's net profit increased 2.3 times, to 13.9 billion rubles. Revenue increased 1.7 times, to 15 billion rubles. The cost of sales fell 23.1 times - from 2 billion rubles to 87 million rubles. Gross profit jumped 2.3 times, to 14.9 billion rubles, profit before tax - 1.9 times, to 13.3 billion rubles
The company's long-term liabilities in 2022 jumped from 1.6 billion rubles to 24.5 billion rubles due to borrowing in the amount of 22.3 billion rubles. Short-term liabilities increased from 700 million rubles to 27.4 billion rubles, in particular, the indicator of borrowed funds - from zero to 26.7 billion rubles. Other GFR revenues for 2022 increased from 8 billion rubles to 16.2 billion rubles. The indicators of other expenses were identical.
As of the end of February 2022, the fleet of own and chartered vessels of the SKF consisted of 134 units, including 108 tankers of various classes, 14 gas carriers and 11 specialized vessels, follows from the data on the company's website.[2]
2024: Renaming of some ships in honor of Russian cities and their transfer to the Russian flag
In April 2024, it became known that Sovcomflot renamed some of its oil tankers in honor of the country's cities after the introduction of illegal US sanctions.
The company's 14 tankers were added to the U.S. Treasury Department's list, bringing the total to 21. The tankers have also changed the flag to Russian from Gabonese, giving Russia more confidence in how it can use them.
2023: EU suspects company handed over its entire fleet to Dubai's SUN Ship Management
In February 2023, the EU discusses sanctions against Dubai-based SUN Ship Management. Russia's state-owned Sovcomflot is believed to have handed almost its entire fleet of 92 vessels to the SUN in April 2022, according to two diplomats.
As a result, it was announced that the EU would not impose sanctions against SUN Ship Management Ltd, Politico reported.
2022
South Korean shipyard DSME refused to build three LNG tankers commissioned by Sovcomflot for Arctic LNG 2
In May 2022, it became known that the South Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) refused to build three LNG tankers commissioned by Sovcomflot. The vessels were proposed for the Arctic LNG 2 project. The reason is the delay in payment by the shipping company. Contract price $872 million.
The number of ships sold has reached 20
Russia's largest shipping company Sovcomflot sold at least 20 ships to pay off creditors by May 22, 2022, FT learned. The new owners, according to the newspaper, are a billionaire from Israel and a Greek tycoon.
Sold 9 tankers to UAE and Singapore companies
On May 13, 2022, it became known that Sovcomflot sold nine tankers to companies from the UAE and Singapore in order to pay off debts to Western banks, writes WSJ. After February 24, sanctions against the company were imposed by the United States, the EU and Britain.
Sovcomflot needs funds to repay its loans to Western banks, according to the Wall Street Journal.
Sovcomflot is one of the world's largest tanker operators, and has sold five tankers to Dubai-based Koban Shipping and four gas carriers to Singapore-based Eastern Pacific Shipping. The latter paid $700 million to the bank, to which the Russian company had debts, WSJ points out. Sovcomflot is also negotiating the sale of ships with other companies, including China Merchants Group Ltd.
Forced sale of part of the fleet
The Russian company Sovcomflot, which is one of the world leaders in the field of sea tanker transportation, plans to sell up to a third of its fleet in order to repay loans from Western banks under sanctions. This was reported by the British edition of Lloyd's List on May 5, 2022.
"At least 40 vessels out of 121 directly owned by Sovcomflot are being discussed [for sale] with buyers from Dubai and China," the newspaper writes, noting that "the Russian company is acting quickly."
The sale is needed in order to have time to pay off Western loans by May 15. On this day, the so-called grace period established by the UK and the EU will expire, during which Western banks can receive loan payments from Russian companies and repay them.
Lloyd's List says the editors have confirmation of the sale of eight Sovcomflot vessels, four of which were transferred to Koban Shipping in Dubai.
The closure of the "daughter" in Cyprus due to sanctions against the background of the conflict in Ukraine
In April 2022, Sovcomflot was forced to close its Cypriot subsidiary due to sanctions, Bloomberg reports.
The structure in Cyprus, which has been operating since 2005 and was the settlement center of Sovcomflot, will stop operations on May 15.
The Russian company, which operates 110 tankers and owns the world's largest Aframax-class tanker fleet, may transfer Cypriot operations to one of the Asian countries.
Notes
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