Long-Term Development Programme of Sovcomflot Group
The Long-Term Development Programme (LDP) of PAO Sovcomflot intended for the period 2014 — 2020 provides an update on the Company’s development strategy. The LDP was approved by the Company’s Board of Directors in November 2014Minutes of the Board of Directors dated 24 November 2014 No. 139. after coordination with relevant agencies and review at a meeting held with the participation of representatives of the Government of the Russian Federation.
The main goal of the LDP faced by PAO Sovcomflot is to maximise the Company’s shareholder value by expanding the industrial business portfolio (long-term contracts with a fixed high rate of return) in the segments of liquefied gas transportation and servicing of offshore hydrocarbon fields while retaining a leading position in the most strategically and economically attractive sectors of the tanker shipping industry.
The main quantitative targets established by the LDP were formulated as a set of financial and industry-specific key performance indicators (KPIs), with the targets approved for each of them for the effective term of the programme.
The results of implementation of the Sovcomflot Group LDP are subject to independent audit. The auditor’s opinion and main conclusions regarding implementation of the LDP are subject to disclosure in the annual reportMinutes of the Board of Directors No. 144 dated 19 May 2015..
LDP 2018 results were audited by АО KPMG. On 2 April 2019, the audit gave a positive opinion. According to the audit opinion, the LDP implementation report is presented fairly, in all material respects, in conformity with the applicable laws, standards, and internal regulations of the Company, gives a true and fair view and is free from material misstatement.