Sovcomflot might extend $5.5 bln investment program by 2 yrs to 2017
ST. PETERSBURG. June 16 (Interfax) - OJSC Sovcomflot might extend its $5.5 billion investment program by two years until 2017, the company's president, Sergei Frank, told journalists on the sidelines of the St. Petersburg Economic Forum on Thursday.
"Now materials are being prepared to adjust our investment program until 2017 (including 2011). It comes to $5.5 billion," Frank said.
When asked if the investment program might be changes, Frank said; "this doesn't concern either increasing or decreasing the investment program, the necessary adjustment is for the product line in consideration of trends on the freight transport market".
A company spokesperson told Interfax that Frank had in mind adjusting Sovcomflot's development program until 2017. The board of directors will vote on these changes in September.
Sovcomflot confirmed its investment program until 2015 worth $5.5 billion in 2010. The program primarily aims at upgrading and expanding the company's ship fleet.
Over 13 vessels are now being built on Sovcomflot's orders: four bulker carriers each with a deadweight of 74,000 tonnes and one LR1 tanker all under construction at Hyundai Mipo Dockyard (ready for delivery on 2013), two icebreakers at Archtech Helsinki Shypyard Oy (United Shipbuilding Corporation's JV with STX Finland) slated for delivery in 2013. In addition, the company has four oil tankers each on order with 118,000 tonnes deadweight from Zvezda-DSME (a JV of USC and Daewoo Shipbuilding Maritime & Engineering) slated for delivery in 2013, three LR2 tankers with 118,000 tonnes of deadweight each (at the same facility).
In addition to ordering new vessels, the company is buying new ships on the secondary market. For instance, Sovcomflot acquired six tankers from PRISCO shipping, which are fitted for transporting oil from fields in the northern part of Sakhalin.
Sovcomflot Group is the world's leading operator of production tankers, arctic tankers and ice-breaking freight vessels and second in terms of Aframax-tanker operations. Including new vessels, the group operates 157 ships with deadweight over 12 million tonnes.
The Sovcomflot Group, including Novorossiysk Sea Shipping , posted 164 million in IFRS profit for 2010, down 11.3% from 2009. The group's sales revenue increased by 7.4% to 1.3 billion. EBITDA went down by 3% to $533 million.