Sovcomflot reports strong performance


sovcomflotOAO Sovcomflot today (Wednesday) released its results for the nine months and third quarter ended 30th September.

Gross revenue was up 9.8% to $1,059.2million compared to the same nine months of last year and net profit was $109.1million. Compared to the same quarter last year gross revenue was up 14.2% to $384.1million and profit up 494.6% to $45.4million.

Highlights of the nine months included delivery of three new vessels of 604,100 tonnes in total comprising two new, advanced design LNG tankers, Velikiy Novgorod and Pskov for long-term charter to Gazprom and a second VLCC, SCF Shanghai, on long-term charter to PetroChina International (China).

There was also the signing of a 20-year contract with Sakhalin Energy to build/operate four multi-functional ice-breaking support vessel and a long-term time charter for three ice-class shuttle tankers to export oil from Novy Port, Russia.

Commenting on the results, Sergey Frank, President and CEO of OAO Sovcomflot, said: “Sovcomflot has performed strongly in the first nine months of 2014, with revenue and profits significantly ahead of the comparable period last year. These financial results reflect an improved freight rate environment over the period, especially within the crude oil segment of the tanker market.

“Equally, they demonstrate over the benefits of our work to develop long-term relationships with ‘blue chip’ charterers across the globe, in order to provide safe and reliable transportation for their cargoes.”

He added: “During the period, we continued to focus on implementation of the Group’s strategy. This includes increasing the scale, range of services and contribution of our premium operations such as gas transportation and offshore support activities, with significant progress also being made in the seismic segment.”