PAO Sovcomflot reveals strong performance in first half of the year

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sovcomflotRussia’s largest shipping company PAO Sovcomflot has announced its financial and operating results for first six months of the year – revealing a strong increase in revenues.

The seaborne energy transportation and offshore services firm has revealed that gross revenue for both freight and hire has increased by 11.8 per cent to US$753.9million and time charter equivalent revenues have increased by 26 per cent to 617.6million USD.

Its EBITDA (earnings before interest, taxes, depreciation and amortisation) has increased by 46 per cent to USD 368,0 million and its net profit has increased to US$216.3million.

President and CEO of PAO Sovcomflot Sergey Frank said: “Sovcomflot achieved very strong results exceeding our own forecasts for the period and reflecting a sustained contribution from both the conventional tanker and industrial shipping segments. The tanker markets were favourable towards shipowners,, and Sovcomflot was well positioned to benefit from the anticipated rise in the spot tanker freight markets given the quality and size of its fleet and efficient chartering policy based on in-house analytics.

“Sovcomflot is one of the few large tanker owners to have sustained the unprecedented industry downturn in previous years whilst maintaining a very sizable year-on-year investment programme aimed at diversifying our business and expanding the scope of marine services to our oil and gas clients. Sovcomflot’s strategy proved its resilience and offered us greater flexibility to capture the upturn in the conventional tanker market.

“We are cautiously optimistic about the second half of the year with good trading continuing based on strong supply-demand fundamentals in most tanker segments which we operate in.”

Senior Executive Vice President of PAO Sovcomflot Evgeny Ambrosov added: “Sovcomflot is continuously expanding the spectrum of its services, based on long-term business relationships with key clients, who place trust in professionalism and expertise of the SCF team. During the first half of the year the company has grown its presence in LNG transportation through the delivery of two new state-of-the-art vessels, SCF Melampus and SCF Mitre, in the first half of 2015.

“These tri-fueled, ice class LNG carriers are operated on long-term charter to Shell. Time charter equivalent revenues in this segment during the reporting period demonstrated a visible increase. Our IBSV fleet and shuttle tanker squader continue steady development and expecting the delivery of three more ultramodern Arctic shuttle-tankers to operate in the extreme harsh environment of the Noviy Port loading facility in 2016, employed under the long-term time-charter agreement with Gazpromneft. I’m thankful to my colleagues at sea and ashore for their dedication which is reflected in these results. I should also like to acknowledge the continuing support of our customers, including many of the world’s leading energy companies, for the trust they place in us.”