Sergey Frank elected as Chairman of Novoship BoD
The annual general meeting (AGM) of Novorossiysk Shipping Company’s (JSC Novoship) shareholders was convened in Novorossiysk, Russia on 17 May 2013.
The annual report on the Novoship results and the annual accounting report for 2012 were approved. The AGM respected the recommendation of the Board of Directors to pay cash dividend for 2012 in the amount of RUB 1.50 per share.
The shareholders made no changes in the list of members of the Board of Directors and Auditing Commission.
The members of the Board of Directors of JSC Novoship are:
Evgeny N. Ambrosov - Sovcomflot – Senior Executive Vice-President / Chief Operating Officer
Vladimir N. Emelianov - Sovcomflot – Vice-President / Chief Strategy Officer
Sergey O. Frank - Sovcomflot – President / Chief Executive Officer
Nikolay L. Kolesnikov - Sovcomflot – Executive Vice-President / Chief Financial Officer
Alexander L. Kurtynin - Sovcomflot – Vice-President / Business Development
Vladimir A. Mednikov - Sovcomflot – Executive Vice-President
Sergey G. Popravko - Unicom Management Services Ltd. – Chief Executive Officer
Igor V. Tonkovidov - Sovcomflot – Executive Vice-President / Technical Director of SCF Group
Yuriy A. Tsvetkov - Novoship – President
When addressing the company shareholders, Chairman of Novoship BoD Sergey Frank noted that the company analytics’ forecast proved true again: the year of 2012 saw no considerable improvement of freight markets. “Stagnation in conventional segments has continued. Over the year, the global fleet grew by some 5.3%, while the demand gained only 1.8%, and that was the major barrier for freight rates growth. At the same time market value of operating vessels continued to decline. In such unfavorable conditions many tanker companies failed to hold their market positions and finished the year with losses exceeding those of the previous year,” Sergey Frank said.
Against this background, Novoship BoD marks that unlike its major rivals Novoship ended the accounting period with a profit and fully met its financial obligations. In 2012, the Company’s revenue were almost stable against 2011 making RUB 13.378 bln, profits from the operation of ships made RUB 4.508 bln (+RUB 209 mln year-on-year). In 2012, Novoship vessels carried 54 mln t of cargo, which is similar to the result of the previous year. High appreciation of the leading oil companies and classification societies received in 2012 as well as statistics in the sphere of safe navigation and environment protection suggest that Novoship confirmed its image of an efficient and reliable fleet manager.
Another stage in implementation of Novoship strategy will comprise the activities on improvement of the Company’s organizational structure scheduled by the BoD for the current year, including the establishment of Novoship subsidiary – SCF Novoship technical management LLC.
After the AGM the newly-elected JSC Novoship Board of Directors and Auditing Commission held their first meetings. Sergey O. Frank was elected Chairman of the Board of Directors.
Novorossiysk Shipping Company is Russia’s largest shipping company in the Black Sea region. The company’s fleet numbers 50 modern vessels with total deadweight exceeding 4.5 mln. Novoship tankers are 7.6 years old on average. The current market value of the company’s fleet is around USD 1.6 billion.
