Sovcomflot revenue climbs

Sovcomflot of Russia said its gross revenue rose 9.9 per cent to USD 1,387 million in 2014, as compared to a year before.

This reflects an improved freight rate environment, especially in the crude oil market and the group’s increasing focus on its gas transportation and offshore business activities, Sovcomflot said in a statement on Wednesday.

The Group significantly improved its profitability in 2014, with a net profit of USD 83.9 million (2013: USD 39.2 million net loss).

Gas Transportation

This includes both LNG and LPG gas tankers, comprising 6 LNG carriers and 4 LPG carriers at the end of 2014.

In 2014, TCE revenues increased by 72.4 per cent to USD 83.2 million, reflecting a combination of factors including an increase in the overall available cargo carrying capacity, according to the statement.

Gas transportation has been identified as a segment of strategic importance to SCF Group. Reflecting this, 2014 saw two new technologically advanced LNG carriers, Velikiy Novgorod and Pskov, join the Group’s fleet. Both vessels are tri-fuel, 170,200m³ capacity Atlanticmax ice class LNG carriers employed under a long-term charter by Gazprom Group.

Sovcomflot entered the LNG transportation business in 2006, following the acquisition of two LNG carriers from BG Group. These vessels, SCF Polar and SCF Arctic, facilitated the training of the Group’s personnel and provided service throughout. The last of the duo, SCF Arctic, was retired in November 2014. This followed 45 years of continuous service, of which the final eight years were under Sovcomflot’s ownership and technical management.

Looking ahead, September 2014 saw the steel cutting of the Group’s lead vessel in a new generation of ice-breaking “Yamalmax” LNG carriers, with a planned 172,600 m3 cargo capacity and an Arc7 ice class classification (RS classification).

Image: Sovcomflot