Sovcomflot reports drop in first quarter profit

Russia’s largest shipping company Sovcomflot posted a drop in net profit of over 60 percent during the first quarter of 2017. 

The company reported a net income of US$39.9 million in the first quarter of 2017 as compared to $103.1 million in the corresponding quarter in the previous year.

Speaking of the results, Sergey Frank, Sovcomflot’s president and CEO said, “the first quarter saw a significant downturn in the global tanker market.”

Sovcomflot noted that some spot market segment time charter equivalent (TCE) rates have dropped 40 percent year on year, with the company reporting TCE revenues of $274.4 million for the first quarter, down from the $290.8 million in the corresponding quarter in 2016.

During the quarter, Sovcomflot took delivery of the world’s first ice-breaking LNG tanker, Christophe de Margerie, that entered into the long-term time-charter agreement with Yamal LNG.