Development strategy of Sovcomflot Group
The Sovcomflot Development Strategy is to expand the highly profitable industrial business portfolio (long-term contracts with a fixed return) while retaining a leading position in the conventional tanker segment, based on implementation of advanced environmental protection technologies and strengthening of cooperation with key charterers
The Group Strategy up to 2017 was approved by the Board of Directors in September 2011Minutes of the Board of Directors dated 12 September 2011 No. 113.. The strategy parameters were updated in 2013 with the planning horizon extended to 2018Minutes of the Board of Directors dated 20 March 2013 No. 127..
According to the Strategy, Sovcomflot Group’s mission is to manage the portfolio of assets in the segments of maritime transportation of hydrocarbons (crude oil, liquefied gas) and servicing of offshore oil and gas production. The goal of the Company’s strategy is to ensure a continuous increase in shareholder value by maximising returns from ownership of assets and fleet operation while maintaining national interests and high quality and operational safety standards.
The main strategic development areas of SCF Group are
- Services for offshore hydrocarbon exploration and production in harsh climatic and ice conditions;
- Liquefied gas transportation;
- Conventional energy shipping.
The Strategy sets forth the Sovcomflot Group’s priorities in sustainable development: ensuring navigation safety, reducing adverse environmental impacts, improving the professionalism of personnel, and placing a focus on technical and innovative development.
The tasks faced by Sovcomflot Group in accordance with the Strategy are as follows:
- Maximising income from the operation of the conventional fleet (crude oil and product tankers), taking into account the prevailing freight market conditions, seasonal factors, and emerging local «peak» freight rates in certain geographic markets;
- Further optimising the fleet size, factoring in the state of the market for second-hand tonnage, and realising opportunities to revamp the fleet in order to reduce operating costs and increase competitiveness;
- Implementing current and launching new Russian and international projects involving the transportation of liquefied gas, shuttle transportation of oil, and servicing of offshore hydrocarbon production in order to increase the share of long-term project business in total revenue and the aggregate assets of the Group;
- Implementing special activities aimed at the development and introduction of promising innovative technologies and ensuring compliance with the requirements of current and prospective environmental legislation.