Sovcomflot profit down 36 pct YoY

Russia’s largest shipping company Sovcomflot posted a 36.2 percent drop in its third-quarter net profit in a”challenging” tanker market.

Sovcomflot reported a net income of US$52.1 million as compared to $81.6 million in the same period last year.

“Despite the tanker market conditions being challenging in the third quarter, with spot rates under notable pressure – for the key tanker classes, the rates have dropped by more than a half year-on-year – Sovcomflot achieved good results for the period,” Sergey Frank, President and CEO of Sovcomflot said.

Sovcomflot’s gross revenue (freight and hire) dropped 7 percent to $359.1 million in the third quarter. Earnings before tax and amortisation (Ebitda) were 14.5 percent lower to $174.6 million.

“During this quarter, our LNG transportation and offshore business units performed particularly well. This reflects the Group’s Development Strategy, which prioritises participation in long-term industrial projects with a fixed high rate of return and the adoption of energy-saving and green technologies,” Evgeny Ambrosov, COO of Sovcomflot said.

The Russian company launched five vessels over the January-September period including the first  ice-breaking LNG carrier for Yamal project, three new Arctic shuttle tankers, and a new ice-breaking supply vessel to serve Sakhalin-2 project.