Consolidated statement of financial position

Total assets of the Group amounted to US$7,743.1 million as at 31 December 2020, up 5.6% year-on-year. Shareholders’ equity increased by 16.9% to US$4,098.4 million. The book value of non-current assets increased by 0.7% from US$6,636.3 million at the end of 2019 to US$6,684.5 million at the end of the reporting period.

Despite the volatility in financial markets due to the unstable situation in the world amid the COVID-19 pandemic, the Group retained access to both foreign and Russian debt capital and equity markets.

In October 2020, PAO Sovcomflot conducted an initial public offering on the Moscow Exchange. The offering included 408,296,691 newly issued ordinary shares at a price of RUB 105 per share. The total net proceeds of the IPO, after expenses and stabilisation-related buy-back, were RUB 37.4 billion (equivalent to US$480.8 million as of the date of issue). The free float of SCF shares amounts to 15.6% and the Russian Federation retains an 82.8%The data is up-to-date at the date of publication of this report. stake. The proceeds of the IPO are being utilised for investments in new assets, with a focus on industrial projects, decarbonisation and further deleveraging.

In 2020 the Group entered into three new credit facility agreements for a total amount of US$289 million, the proceeds from which were used to refinance existing loans. The Company also drew down funds under previously concluded credit facility agreements to finance the delivery of new vessels in the reporting year. In the reporting year, the Group’s borrowers and guarantors fully complied with all requirements and terms (“covenants”) of corresponding credit facility agreements.

SCF Group carefully monitors capital structure and works on its optimisation. Sovcomflot Group’s leverage (net debt to adjusted equity ratioAdjusted net debt ratio is calculated as the ratio of net debt to net debt plus equity, adjusted for the market value of vessels.) at the end of 2020 was 41.9%, net debt to EBITDA ratio was 2.6.

During 2020 Sovcomflot Group continued to work with international rating agencies

Moody’s Investors Service affirmed Sovcomflot credit rating at Ba1 with a stable outlook. S&P Global Ratings affirmed the existing credit rating of the Company at BB+ and changed the outlook to «positive». Fitch Ratings kept SCF’s credit rating at BB+ with a stable outlook.

Amid the positive debt capital market dynamics for issuers at the end of the reporting period SCF Group’s Eurobonds traded at a premium to par value and had a yield to maturity in 2023 of 2.6% with an average yield for the year of 3.1%.