Key performance indicators of the Long-Term Development Programme

The table below shows the attainment of targets set by the PAO Sovcomflot LDP for 2019 broken down by approved KPIs.

Attainment of KPI targets set by the LDP in 2019 Except for items 5, 9 and 10, target and actual KPI values are calculated using proportional consolidation of the results of joint venture operations according to the methodology approved by the Board of Directors on 10 December 2014 (Minutes of the Board of Directors No. 140 dated 12 December 2014).
№  KPI Target value (basic sce nario) The lowest scenario Actual value Comments
1 Net revenue (time charter equivalent income), USD million ≥1,560 ≥1,230 1,337.51 The main reasons for the deviationRelevant to items 1, 2, 4, 6, 7:
  • Significant changes in global geopolitics and in the macroeconomic and industrial environment that have taken place since the approval of the current version of LDP in 2014 and have affected the prospects for implementing the projects embedded in the LDP;
  • Unfavourable freight market conditions.
2 Profit/loss, USD million ≥350 ≥130 225.38
3 EBITDA margin, % ≥65 % ≥64 % 68.39 %
4 EBITDA, USD million (for reference) ≥1 020 ≥790 914.77
5 Total dividends (index of dynamics of dividend payments vs. average level during the past three years), % ≥100 % 100 % 208.92 %
6 Return on Invested Capital (ROIC), % ≥6.6 % ≥5.3 % 6.11 %
7 Return on Equity (ROE), % ≥7.3 % ≥4.1 % 6.73 %
8 Net Debt / EBITDA ≤8 ≤8 3.58 Attained
9 Utilisation efficiency of fixed assets (fleet), % ≥95 % ≥95 % 96.82 % Attained
10 Implementation of the innovative development programme, % ≥100 % ≥100 % 105.57 % Attained
The table below shows the attainment of targets set by the PAO Sovcomflot LDP for 2019 com-pared to the previous year.
No. KPI Actual for 2018 Actual for 2019
1 Net revenue (time charter equivalent income), USD million 1,138.05 1,337.51
2 Profit/loss, USD million - 45.56 225.38
3 EBITDA margin, % 54.40 % 68.39 %
4 EBITDA, USD million (for reference) 619.10 914.77
5 Total dividends (index of dynamics of dividend payments vs. average level during the past three years), % 46.42 % 208.92 %
6 Return on Invested Capital (ROIC), % 2.75 % 6.11 %
7 Return on Equity (ROE), % - 1.34 % 6.73 %
8 Net Debt / EBITDA 5.48 3.58
9 Utilisation efficiency of fixed assets (fleet), % 97.85 % 96.82 %
10 Implementation of the innovative development programme, % 114.07 % 105.57 %
Key performance indicators of the Long-Term Development Programme
Attainment of targets set by the PAO Sovcomflot LDP broken down by approved KPIs on average for 2015-2019 Except for items 5, 9 and 10, target and actual KPI values are calculated using proportional consolidation of the results of joint venture operations according to the methodology approved by the Board of Directors on 10 Decem-ber 2014 (Minutes of the Board of Directors No. 140 dated 12 December 2014).
No. KPI Target value (basic scenario) The lowest scenario Actual Comments
1 Net revenue (time charter equivalent income), USD million ≥1,401.78 ≥1,201.78 1,225.63 Actual between the basic and lowest sce-nario
2 Net profit, USD million ≥262.74 ≥92.74 125.63
3 EBITDA margin, % ≥61.86 % ≥60.06 % 60.29 % Actual is comparable to the lowest scenario (the margin is less than 2 %)
4

EBITDA, USD million

(for reference)

≥876.16 ≥722.16 745.89 Actual between the basic and lowest sce-nario
5 Total dividends (index of dynamics of dividend payments vs. average level during the past three years), % ≥100.00 % ≥100.00 % 135.03 % Attained
6 Return on Invested Capital (ROIC), % ≥6.03 % ≥4.49 % 4.83 % Actual between the basic and lowest sce-nario
7 Return on Equity (ROE), % ≥6.16 % ≥2.64 % 3.88 %
8 Net Debt / EBITDA ≤8.00 ≤8.00 4.54 Attained
9 Utilisation efficiency of fixed assets (fleet), % ≥95.00 % ≥95.00 % 97.36 % Attained
10 Implementation of the innovative development programme, % ≥100.00 % ≥100.00 % 113.80 % Attained