Sovcomflot tightens loss on offshore and gas performance

Russia’s largest shipping company Sovcomflot reported tightening losses during the year 2018, as it turned to profit in the fourth quarter of the year. 

The company reported a $45.6 million net loss for the year compared to a net loss of $113 million the previous year. In the fourth quarter, Sovcomflot reported an 11.9 million profit, swinging from a $106.2 million loss in the corresponding quarter in 2017.

“During the reporting period, SCF Group achieved solid operating and financial results despite another difficult year for the conventional tanker market.  A strong performance from the group’s gas and offshore divisions offset continued weakness in the conventional tanker fleet over 2018 and helped drive the group’s operating profit to $187.3 million,” Sergey Frank, president and CEO of Sovcomflot said.

The annual results reflected a strong contribution from the industrial shipping business, comprising offshore services and LNG transportation. These activities now account for 57.2 percent of the group’s time charter equivalent (TCE) revenues, up from a 50.9 percent share in 2017.

Sovcomflot noted its time charter equivalent (TCE) revenue edged up 1.6 percent from $1.06 billion in 2017 to $1.07 billion in 2018. The fourth quarter TCE rose 10.6 percent, from $272 million in Q4, 2017 to $300.7 million in the fourth quarter.

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