Sovcomflot’s profit dips in 2021

Russia’s largest shipping firm Sovcomflot said its net profit dropped 86.6 percent in 2021 due to a “difficult year” for the conventional tanker market.

Sovcomflot reported a profit of $35.8 million in the January-December period, compared to $267.1 million in the year before.

Adjusted net profit dropped by 79.4 percent to $61.8 million.

Moreover, time-charter equivalent (TCE) revenues slid by 18.9 percent to $1.09 billion, Sovcomflot said, adding that revenue had reached $1.54 billion, down 6.8 percent year-on-year.

Sovcomflot said it has achieved “solid operating results despite a difficult year for the conventional tanker market.”

“A strong performance from the group’s industrial fleet offset weakness in the conventional tanker fleet over 2021 and helped drive the group’s adjusted net profit to $61.1 million,” it said.

The state-owned shipping company said its industrial business portfolio, comprising LNG and LPG vessels and harsh environment offshore services, continued to show a “stable growth” due to input from new vessels put into operations and employed under long-term contracts with international energy majors.

Since late February, the US, the EU, and others have imposed sanctions on Sovcomflot due to the Russia-Ukraine crisis.

Sovcomflot did not comment on these matters in the financial report.

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