Photo: Image courtesy of Sovcomflot

Sovcomflot reports 2019 profit

Russia’s largest shipping company Sovcomflot swung to a profit in 2019, close to its historic highs. 

The company reported a net profit of $225.4 million which compares to $45.6 million net loss reported in 2018.

Sergey Frank, Sovcomflot chairman, said, “In the first year of implementation of our new strategy 2019-2025, Sovcomflot significantly exceeded the KPI targets set for 2019 and strengthened its position in the market segments that are of strategic importance for the company, looking into the future.”

During the period the company has taken delivery of three LNG-fueled Aframax crude oil tankers, Korolev Prospect, Vernadsky Prospect, Samuel Prospect.

Korolev Prospect, a Green Funnel crude oil tanker, became the first vessel to cross the entire length of the Northern Sea Route using only cleaner-burning LNG as a fuel.

The company has also signed long-term time-charter contracts signed with Novatek for three next-generation LNG-fuelled MR product carriers, currently under construction at Zvezda Shipbuilding Complex.

The two companies have also established Smart LNG, a joint venture that will own and operate a fleet of LNG carriers to provide safe, year-round LNG transportation for Novatek’s projects.