2019 – Key events and achievements
Message from the Chairman of the Board of Directors
Message from the President and Chief Executive Officer
Russia’s largest shipping company and one of the global leaders in marine transportation of hydrocarbons (crude oil and petroleum products, liquefied gas) and in transport servicing of oil and gas projects on the continental shelf. SCF Group is involved in servicing large oil and gas projects in Russia and abroad: Yamal LNG, Arctic LNG 2, Sakhalin-1, Sakhalin-2, Varandey, Prirazlomnoye, Novy Port, Tangguh (Indonesia).
In 2019 Sovcomflot Group continued to successfully develop long-term partnerships with key customers — leading Russian and international oil and gas companies, such as Gazprom Group, NOVATEK, Lukoil, Shell, Total, Exxon Neftegas, Sakhalin Energy. Four newbuildings were delivered during the year.
Owing to continuous improvement of the efficiency and quality of fleet management, as well as environmental impact reduction in full compliance with the regulations of the IMO, Sovcomflot was named Company of the Year at the 2019 Lloyd’s List Europe Awards.
The operational results achieved in 2019 attest to the advantages of the Company’s current business model, which provides for faster growth and consistent development in market segments with a high value added, such as the servicing of offshore projects and liquefied gas transportation, while maintaining leader-ship positions in individual conventional transportation segments. Participation in large oil and gas projects ensures stable revenue for Sovcomflot Group even in the situation of high market volatility.
The Board was very pleased with the financial and operational results from the first year of Strategy 2025. In 2019, the Group achieved all its key performance targets, whilst substantially outperforming on several.
In 2019, SCF’s net profit climbed to USD 225.4 million and, in accordance with our dividend policy, this enabled a significant RUB 7.18 billion dividend payment to be distributed to our Shareholder.
In 2019, SCF Group operated against the backdrop of a gradual recovery in conventional tanker freight rates, after nearly three years of depressed tanker markets. Despite the market volatility remaining high, conventional tanker shipowners benefited from a positive trend in freight rates over the year, something that was especially evident in the fourth quarter.
As an industry leader, Sovcomflot adheres to the principles of sustainable development, giving priority to the safety of navigation, environmental protection, and maintaining a high quality service. Recognising its responsibility to the global community, Sovcomflot declares: Safety Comes First.