Russia: Sovcomflot Q1 Net Profit Climbs 36.3 Percent

Sovcomflot Q1 Net Profit Climbs 36.3 Percent

SCF Sovcomflot of Russia said that its net profit in the first quarter rose 36.3% on year to USD 45.4 million.

Q1 2012 Highlights:

• Gross revenue up 14.4% to USD 394.9 million (Q1 2011: USD 345.1 million).

• Grand Aniva gas carrier completes the 500th delivery of LNG for Sakhalin-2 project, via the LNG terminal at the port of Prigorodnoe (Sakhalin Island).

• Expansion of co-operation with Glencore through the acquisition of an equity participation in four LR1 product carriers (74,000 tonnes dwt).

• Long-term charter of two 20,600 cbm ice-class LPG tankers with Russian petrochemical company SIBUR.

• Completion of engineering and design tests in preparation for the transportation of the Berkut Gravity Base Substructure for the Arkutun Dagi oil field of the Sakhalin-1 project (operator – Exxon Neftegas Ltd). Towing and installation of the platform at the field will be carried out by Sovcomflot with its partner – the Dutch company Van Oord.

Commenting on the Group’s results Sergey Frank, President & CEO of OAO Sovcomflot, said: “Despite some limited revival in the global tanker market, at the beginning of 2012, tanker owners are still experiencing challenging times. It is way too early to talk about recovery from this period of long-term market depression. During the first quarter of 2012, freight rates were at historical lows and the market saw an over-supply of new-buildings. In the first quarter freight rates remained at historic low levels due to a continued tanker supply / demand imbalance. Despite this background, the Group has proven to be resilient, which has demonstrated the ongoing viability of its business-model. SCF Sovcomflot has ended the period with positive results, with net profit 36.3% above the level achieved last year. Significantly, the Group’s profitability index remains way ahead of the industry average, which gives us cause to look to the future with confidence.”


LNG World News Staff, June 8, 2012