Sovcomflot’s profit drops in H1

Russia’s largest shipping company Sovcomflot reported a net income of US$165.9 million for the first-half of 2016, a 23.3 percent drop compared to $216.3 million in the first six months of 2015. 

Sergey Frank, president and CEO of Sovcomflot, commenting on the result said, the global tanker market, from January to July, witnessed a notable downswing, “with spot rates in certain market segments dropping by one-third year-on-year, which has affected the financial performance of the entire industry.”

Frank added that the company focused its efforts on diversifying its portfolio of long-term industrial projects with a fixed high rate of return, to counter the effects of the downturn.

Sovcomflot’s gross revenue (freight and hire) dropped 9.2 percent, from $749.5 million in the first six months of 2015 to $680.2 million in 2016.

Time charter equivalent (TCE) revenues for SCF’s gas transportation business in the first half of 2016 were $72.6 million, rising from $63.6 million in the corresponding period in 2015.

In January, the company launched the first Arctic LNG carrier that will transport liquefied natural gas from the Yamal LNG project.

The vessel has a cargo capacity of 172,600 cubic meters and the capability to break the ice of up to 2metersres thick. Delivery of the LNG carrier is scheduled for the first quarter of 2017.

LNG World News Staff