Sovcomflot has posted the IFRS results for H1 2020. The Group’s revenue was up 19.8% to $951.3 mn, time charter equivalent revenue up 31.8% to $782.7 mn, and EBITDA up 54.7% to $578.6 mn. Net profit surged by 148.8% to make $226.4 mn.
Commenting on the H1 2020 results, Igor Tonkovidov, President and CEO of SCF Group, said: ‘SCF Group has achieved its operating and financial targets for the reporting period. For the first time in SCF Group’s history, EBITDA over the prior 12 months has exceeded USD 1 billion’.
‘An optimal balance of long- and short-term charter contracts, together with a rational geographic distribution of vessels allowed SCF Group to fully capitalise on the freight market upswing. In the first half of the year, the energy shipping market dynamics were highly volatile. Along with the usual seasonal factor, the freight rates levels were impacted by exogenous non-market drivers as well as sharp price fluctuations in the oil market, caused by changes in the OPEC+ terms. In the short term, this has contributed to the increase in both spot and time charter rates, which has allowed the Group to grow its term contracts portfolio’.
“Importantly, SCF Group also continued to steadily grow its industrial business portfolio, which provides a long-term fixed income stream not impacted by market fluctuations. Over H1, SCF Group increased its time charter revenues from gas and offshore operations by 10 per cent to USD 342 million. At the end of the reporting period, the Group had USD 12.8 billion in future contracted earnings and receivables, a record for the Group’, he concluded.
Sergey Frank, Chairman of the Board of Directors of SCF Group, noted: ‘The Board of Directors is satisfied with SCF Group’s performance in H1 2020. The Group has fully achieved the goals set by the shareholder for the period and demonstrated solid financial performance for the fourth quarter in a row. We are pleased that, against the current operationally challenging environment, SCF Group steadily and consistently follows the development path outlined by the Strategy-2025, approved in May 2019, successfully expanding its competencies in key strategic areas, such as LNG shipping in harsh climates and adopting new cleaner-burning fuels for large-capacity tanker operations.’