Information agency Credinform represents a ranking of shipbuilding enterprises in Saint Petersburg and Leningrad region. Using the Information and Analytical System Globas, the experts of the Agency have selected shipbuilding enterprises with the largest 2018 revenue. The experts analyzed final financial result, total debt and leveraged loans of the enterprises.
Total debt is a sum of long-term and short-term liabilities of the company.
Leveraged loans is total debt to all assets of the company.
Shipbuilding is a key industry in Saint Petersburg. The city was initially meant to be a shipbuilding center of the country and main sea stronghold of Russia. In the 1700s, the Great history of shipbuilding in Saint Petersburg came. Shipbuilding appeared thanks to Peter I and originated from the Northern War with the Swedes. Thanks to the victory in the war, Russia became the Empire, Peter I became the emperor, and the entire Russian fleet became known as the “Imperial Russian Navy” and is known throughout the world. Many of the country's successes are directly related to Saint Petersburg shipbuilding, and the catch phrase of Emperor Alexander III: “Russia has only two allies – the Army and the Navy,” is relevant today.
Shipbuilding of St. Petersburg has a special role in the country's defense industry. The Russian Federation ranks second after the United States in the field of military shipbuilding; it accounts for about 12% of the global military shipbuilding market.
The main engines of St. Petersburg shipbuilding are enterprises included in the United Shipbuilding Corporation (hereinafter “USC” or “Corporation”). The holding controls 14 enterprises: 8 shipbuilding and ship repairing enterprises and 6 design bureaus.
The total revenue of companies exceeds 176 billion RUB and forms approximately 4,3% of the total gross regional product (GRP) of St. Petersburg. The total uncovered loss of enterprises in St. Petersburg and the Leningrad region amounted to 24,3 billion RUB, and the average debt rating of the assets is 81%. Uncovered loss for enterprises in this industry is characterized by bad debt.
|№||Name||Revenue 2018, million RUB||Net profit/loss 2018, million RUB||Total debt, million RUB||Uncovered loss, million RUB||Leveraged loans|
|1||JSC CDB Rubin||57244,6||+50,3%||1906,3||+8,7%||171668,4||-||91%|
|2||JSC Admiralty shipyard||41022,9||+51,5%||2951,6||+8,8%||79119,6||-||69%|
|3||JSC Baltic shipyard||25584,3||+164,7%||-1032,4||Became unprofitable||126072,0||(1 181,8)||99%|
|4||JSC Severnaya verf shipyard||17699,7||-7,7%||-3200,5||+93,9%||122508,6||(13 430,4)||99%|
|5||JSC Sredne-Nevsky shipbuilding plant||10625,4||+55,3%||263,4||Became profitable||26793,9||(753,2)||88%|
|6||JSC Vyborg shipyard||7947,1||-32,5%||-545,6||Became unprofitable||23999,3||(4 586,1)||102%|
|9||JSC Proletarsky zavod||3160,9||-0,6%||4,3||Became profitable||10045,5||(1 952,3)||91%|
|10||Severnoe design bureau||2408,6||+17,9%||129,5||+66,6%||4569,1||75%|
|11||Kronstadt Marine Plant||2124,2||+9,0%||165,8||+24,8%||1442,0||45%|
|12||Nevskoe design bureau||1105,3||+4,0%||74,8||-69,3%||1067,1||54%|
|13||USC-Iceberg Central Design Bureau||334,8||+13,8%||21,0||+59,1%||298,2||86%|
|14||Nevsky shipyard||Financial data is not disclosed||(2 400,0)||-|
The central design bureau Rubin (CDB Rubin) with the highest 2018 revenue (57,2 billion RUB) is ranked the first. The enterprise is developing combat submarines for the Ministry of defense of the Russian Federation. In terms of technical equipment and combat characteristics, CDB Rubin has no equal in the world. The Russian arms export is formed on the basis of the bureau’s developments. The bureau plays a crucial role in the design of technical means for developing oil and gas fields on the continental shelf. The total debt at the end of 2018 amounted to 171,6 billion RUB, the debt on the assets of the organization - about 91%, but the high level of liabilities does not affect the economic efficiency of the bureau. Net profit among all enterprises of St. Petersburg and Leningrad region is one of the highest (1,9 billion RUB). Rubin's latest development was a Project 636 combat submarine. Its main advantages include low noise and the ability to deliver missile salvo strikes against sea and ground targets.
The second is the oldest shipyard not only in St. Petersburg, but throughout Russia – Admiralty shipyard. It was established under Peter I, and on November 5, 2019 celebrated 315 years from the date of foundation. St. Petersburg is remarkably only one year older than the shipyard. In 2018, the enterprise’s revenue grew by 51,5% and reached the level of 41 billion RUB. Admiralty shipyard is the key enterprise of the shipbuilding industry and the center of non-nuclear underwater shipbuilding in Russia. Over the entire history of its activity, more than 2600 civilian and military ships and over 300 various combat submarines, as well as the world's first nuclear-powered icebreaker “Lenin,” were produced. The final financial result of the plant is the highest among all shipbuilding enterprises (2,9 billion RUB). In mid-2018, Admiralty shipyard received a large government order for the design and construction of six North Pole ice-resistant self-propelled platforms. By the end of 2019, already 4 out of 6 platforms were handed over to the customer. According to Globas, the value of the state contract reaches 7 billion RUB.
By revenue, JSC Baltic shipyard ranks the third (25,5 billion RUB). According to the financial statements for 2018, the enterprise had a net loss exceeding 1 billion RUB. It was explained by the press office that the shipyard greatly delayed the construction of floating facilities. In addition, the it has one of the highest levels of leveraged loans, and the bad debt reaching 1,2 billion RUB. Due to the postponement of the production of previously accepted orders, the enterprise cannot receive new projects and advances. The lack of funds in current accounts forces the company to take loans from the bank, and interest completely erode the pledged profit.
A similar situation exists with Severnaya verf shipyard. Revenue for 2018 amounted to 17,7 billion RUB, while net loss increased by 93,9% and amounted to 3,2 billion RUB. Being the highest among enterprises in St. Petersburg and Leningrad region, the level of bad debt continues to grow (13,4 billion rubles). Today, discussions are being held on the future of such debts: either the enterprise “closes” them by receiving new orders, or the State writes off liabilities from the plants. The most successful projects are the military reconnaissance ships “Ivan Khurs” and “Yuri Ivanov”, designed for radio intelligence, radio interception of air communications and control of the maritime borders of the Russian Federation. Currently, the technological capabilities of the shipyard allow building commercial vessels for various purposes.
By revenue, JSC Sredne-Nevsky shipbuilding plant ranks the fifth (10,6 billion RUB). In the statement of financial results for 2018, it is recorded a net profit (263,4 million RUB). The previous year was less successful. The plant could not transfer a single ship to the Russian fleet; the enterprise suffered a net loss. The situation was changed, and a year later, the plant provided the Russian Navy with mine defense ships and minesweepers designed to search and destroy sea mines in the waters of naval bases. The borrowed assets of the plants decreased to 88%, however, there is a bad debt (753,2 million RUB), but the enterprise is trying to independently satisfy the debts of past years. The amount of uncovered loss decreased by 26,6%.
The sixth is Vyborg shipyard. The revenue of the enterprise decreased by 32,5% to 7,9 billion RUB, and it was reported a loss (545,6 million RUB) at the end of the year. The shipyard is one of the troubled assets of USC. Its bad debt exceeds 4,5 billion RUB. It is known that 2,5 billion RUB of bad obligations formed even before the plant joined the Corporation. The leveraged loans reached 102%. According to Globas, the shipyard participated in the bankruptcy case as a defendant, but serious problems were avoided, and the claims were withdrawn. The consequences of the shipyard’s underload in 2012-2015 had to be compensated by attracting loans and borrowings. Such as that of the Baltic and Severnaya verf shipyards, interests on the loan took away the profit. The shipyard’s management hopes to improve the financial condition in the future, since the plant was fully loaded until 2022. The main specialization of the shipyard is icebreakers. The latest developments are vessels designed to operate in the Arctic oil fields.
Proletarsky zavod faces similar circumstances. Its bad debt is nearly 2 billion RUB. The enterprise was on the verge of bankruptcy, but RF President Vladimir Putin several times saved it from liquidation by restructuring debts at first, and then providing the enterprise with government orders.
Nevsky shipyard joined the USC in the summer of 2019, as a result of a transaction to sell the Finnish shipyard - Arctech Helsinki Shipyard. In addition, the Corporation received 35 million EUR.
According to forecasts of representatives of the Association of Shipbuilders of St. Petersburg and Leningrad region, in the coming years the main profit in the St. Petersburg shipbuilding industry will be formed by design bureaus, primarily due to the execution of the state defense order. Design bureaus Malachite (7th in the ranking with revenue of 3,7 billion RUB) and Almaz (8th in the ranking with revenue of 3,4 billion RUB) have large orders. The majority of enterprises work with the certain design bureaus. USC-Iceberg Central Design Bureau is developing most of the projects for Severnaya verf shipyard, and for Admiralty shipyards, it is CDB Rubin, for instance.
Nevskoe design bureau (12th in the ranking with revenue of 1,1 billion RUB) deserves special attention. The bureau’s representatives announced the introduction of a new work scheme: for the first time in the history of Russian shipbuilding, the design bureau will develop the project at its own expense, and then receive royalties from each vessel built.
All design bureaus of St. Petersburg show good financial results. The loan debt is below the industry average, the final financial result is positive with no bad debts. Such results are achieved due to the fact that the design bureaus are engaged in the creation of drawings, and plants are assembled and manufactured. Hence, shipbuilding enterprises may have debts due to unforeseen expenses as defects, depreciation and idle part of the equipment.
The results of the ranking showed that the shipbuilding industry in St. Petersburg and Leningrad region is on the rise. The growth in revenue is a result of increased production capacity of enterprises. The final financial results are improving. Only two shipyards showed losses. It is noteworthy that unsatisfactory indicators are a consequence of the underload of shipyards in the past. Today, orders and production loads are equally distributed, and shipyards are constantly provided with orders. Keeping this trend, they will be able to completely pay off bad debts, reduce the level of state support, and be transferred to their own financing.
The third stage of capital amnesty, which began on June 1, 2019, will end on February 29. This was the subject of our publication from 27.05.2019 «Capital amnesty has been extended».
It should be recalled, that according to the Federal Law of 08.06.2015 No.140-FZ "On the voluntary declaration of assets by individuals and accounts (deposits) at banks and on amendments to certain legislative Acts of the Russian Federation", the citizens had the opportunity to report about their accounts and deposits, property, shares in the authorized capital of domestic and foreign companies. The capital amnesty was possible only after the repatriation of accounts and enterprises, in other words after the actual return of capital to Russia.
Among new conditions appeared on the third stage are not only transfer of capital to Russia, but also business registration in special administrative regions - Russky Island in Primorsky Krai or Oktyabrsky Island in Kaliningrad. Concessional taxation is provided for the residents of these areas, the data on beneficiaries is available only for management companies, supervisory authorities and courts.
Relief from criminal responsibility was guaranteed by the relevant amendments to the Article 761 of the Criminal Code of the Russian Federation. At the same time, these guarantees were not recorded in the Criminal Procedural Code of the Russian Federation and there were examples of using information from the voluntary declarations on capital amnesty against entrepreneurs.
The Federal Law No. 498-FZ of 27.12.2019 adopted the relevant amendments in order to harmonize the legislation on capital amnesty with the provisions of the Criminal Procedural Code of the Russian Federation.
In particular, it was stated, that submission of a special declaration and information from such declarations could not serve as a reason for initiating a criminal case.
Besides, it is prohibited to withdraw special declarations as well as documents and information attached to them during the investigative actions.
According to the Ministry of Finance, during the previous stages about 20 000 returns have been filed, however the amount of declared funds is a tax secret. The Federal Tax Service does not disclose information about the number of declarations submitted during the third stage of amnesty, but according to the Ministry of Economic Development, 12 new companies were registered in the special administrative regions since June 2019. This is confirmed by Information and Analytical system Globas, at the same time, the total authorized capital of these companies exceeds 200 billion RUB.