On 23 April 2021, the annual meeting was held of the Collegium of the Ministry of Transport of the Russian Federation was held to discuss the transport sector performance over 2020, as well as targets and goals for 2021 and the longer term. The meeting was chaired by Vitaly Saveliev, the Minister of Transport.
During his address, Igor Tonkovidov, President and CEO of PAO Sovcomflot, noted that despite the unprecedented challenges the global shipping industry faced over 2020, as well as the COVID-19 pandemic-related restrictions, the Company demonstrated strong operational and financial performance. Sovcomflot ensured the health of its employees was protected, both at sea and ashore, while also maintaining the continuity and high efficiency of its operations.
During his presentation, Igor Tonkovidov also touched upon SCF’s approach towards energy transition, with a special emphasis on adopting cleaner marine fuels.
“For many years, Sovcomflot has been consistently driving a reduction in the carbon footprint of its fleet. Over the last eight years, from 2012 to 2020, this allowed the Company to reduce the carbon intensity index of its fleet by 22 per cent. All vessels currently ordered by SCF are designed to use LNG fuel, the cleanest burning fuel currently available both commercially and technically," said Igor Tonkovidov.
In 2020, the Company took delivery of three new LNG carriers, with a further 19 to 21 LNG carriers scheduled for delivery in 2023-2025, which will create over 1,000 new, well remunerated jobs for Russian seafarers.
Igor Tonkovidov also brought up the issue of increasing the competitiveness of the Russian fleet and the Russian flag.
"In 2020, the Russian fleet accounted for about 1.4 per cent of all export and import cargoes processed through Russian sea ports. We need to reconsider the role of Russian ship owners in providing transport services for our national exports. An effective measure could be providing domestic carriers with a priority right to transport at least 30 per cent of domestic exports of hydrocarbons and other strategic cargoes by 2030, while at the same time making these carriers commit to ordering from Russian shipyards the vessels required for transporting these cargoes, to the extent that the capacity and technical capabilities of these yards will allow," concluded Igor Tonkovidov.
SCF Press Office
PAO Sovcomflot (MOEX:FLOT) is one of the world's leading energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas production. As of the date of this release, the Group’s fleet comprises 145 vessels with a total deadweight of over 12.6 million tonnes, including vessels owned through joint ventures. More than 80 vessels have an ice class.
SCF is involved in servicing large oil and gas projects in Russia and around the world: Sakhalin-1; Sakhalin-2; Varandey; Prirazlomnoye; Novy Port; Yamal LNG, and Tangguh (Indonesia). The Group is headquartered in St. Petersburg, with offices in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, and Dubai.
As of the date of publication of this press release, SCF Group has 20 large-capacity tankers of different classes with a total deadweight of 1.86 million tonnes under construction at Russian yards, including 15 Arctic LNG carriers and five LNG-fuelled crude oil and product tankers. All 20 vessels are time-chartered to major Russian energy producers under long-term contracts.
In 2020, SCF Group's net profit increased by more than 18 per cent year-on-year and amounted to USD 267 million, and corrected EBITDA grew by almost 10 per cent year-on-year to a record level of USD 903.4 million.