Government of Russia reduces stake in Sovcomflot

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AK&M 07 October 2020 20:06

As part of implementing the forecast plan (program) for privatization of federal property and the key aspects of federal property privatization in 2020-2022, a number of measures have been successfully taken to reduce the share of Russian Federation in SCF, according to a statement by Russia's Federal Agency for State Property Management (Rosimushchestvo).

The stake was reduced by means of an IPO, including the issuance of shares and their public offering while preserving the equity stake of the Russian Federation of at least 75% plus 1 share.

The company's Board of Directors decided to offer the ordinary shares at a price of 105 rubles per share. The total proceeds of Sovcomflot as a result of the public offering of the ordinary shares will amount to about RUB 42.9 billion.

SCF Group (Sovcomflot) is Russia's biggest shipping company, one of the global leaders engaged in the marine transportation of hydrocarbons and providing maintenance services for off-shore oil and gas upstream projects. SCF Group's fleet comprises 146 owned and chartered vessels with a total deadweight of 12.6 million tonnes, more than 80 of them being ice-class vessels.

Sovcomflot provides support to large offshore energy projects, such as: Sakhalin-I, Sakhalin-II, Varandey, Prirazlomnoye, Yamal LNG, Tangguh (Indonesia). The company headquartered in St. Petersburg has representative offices in Moscow, Novorossiysk, Murmansk, Vladivostok, London, Limassol, and Dubai.

IFRS net profit of Sovcomflot for 2019 was $225.4 million against a loss of $45.6 million a year earlier. Revenue increased by 9.6% to $1.665 billion from $1.52 billion, EBITDA by 41.7% to $823 million from $580.7 million.