Sovcomflot sees profits slide in challenging market conditions

Sovcomflot sees profits slide in challenging market conditions
Ice-breaking LNG carrier Christophe de Margerie (Image courtesy of Sovcomflot)

Russia’s largest shipping company Sovcomflot endured a challenging first half of the year 2017, reporting a significant drop in profit for the first six months. 

The company posted a $15.1 million net profit for the first six months, compared to $166 million a year ago. Sovcomflot dropped to a net loss during the second quarter from a profit of $62.9 million in the second quarter last year to a net loss of $24.7 million during Q2, 2017.

“The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows,” SCF’s president and CEO Sergey Frank said.

Sovcomflot also reported a slight drop in time charter equivalent revenues (TCE) for the first half of the year, sliding from $576.4 million in 2016 to $530.8 million during the six months under review.

Following the period under review, Sovcomflot’s icebreaking LNG carrier Christophe de Margerie completed her first commercial voyage, transporting liquefied natural gas (LNG) through the Northern Sea Route from Norway to South Korea, setting a new transit record in the process.

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