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Fourfold Profit Jump for SCF

March 21, 2016

Russia’s largest shipping company SCF Group (PAO Sovcomflot) saw a major upswing in its full-year results recording a net profit of USD 354.5 million against USD 83.9 million reported in 2014.

The company said that its total future contracted revenues amounted to USD 8.5 billion.

In addition, the company’s gross revenue increased by 7.6 per cent to USD 1,483 million and its time charter equivalent revenue (TCE) increased by 18.8 per cent to USD 1,240.1 million when compared to figures from 2014.

According to Sergey Frank, President and CEO of Sovcomflot, the results for 2015 have exceeded the company’s expectations.

“Such result was achieved to a great extent due to Sovcomflot’s ability to consistently execute its core strategy aimed at continued growth of our project business. Also contributing to our success were a solid technical performance and flexible chartering policy which helped Sovcomflot to take full advantage of the major rebound in the tanker markets,” he went on to say, adding that looking ahead the company’s core strategy remains unchanged.

“At the same time Sovcomflot will continue to build a robust pipeline of fixed income projects in LNG and offshore services. In the short term, we remain cautiously optimistic with regard to the freight market dynamics due to the fundamental supply and demand balance.”

Over 2015 Sovcomflot took delivery of two tri-fueled LNG carriers for long-term time charter to Royal Dutch Shell with three more slated for delivery in 2016 and 2017.

As at 31 December 2015, Sovcomflot’s fleet comprised 143 owned and chartered vessels amounting to over 12.4 million tonnes DWT in total. The company has eight vessels under construction, including: one ice-breaking Arctic LNG carrier; one multifunctional ice-breaking (MIB) supply vessel; three MIB standby vessels and three Arctic shuttle tankers.