Sovcomflot logs lower profit

Russia’s largest shipping firm Sovcomflot reported a lower net profit in the third quarter due to a weaker conventional tanker market.

Sovcomflot posted a net profit of $23.1 million in the July-September period, down 10.9% year-on-year.

Revenue increased by 1.6% to $287.1 million but EBITDA declined 1.6% to 162.8 million.

After reaching record highs in the first half of 2020, the tanker markets came under pressure in the third quarter of this year, mainly due to seasonal volatility, Sovcomflot said.

However, the firm expects the tanker sector “is well positioned for a recovery”.

“Freight rates will respond positively and quickly to any increase in the refining output of oil products, and the return of crude production and shipping to healthy levels,” it said.

New LNG carrier delivery

In September, Sovcomflot took delivery of SCF Barents, a newbuild 174,000-cbm LNG carrier. The vessel ships LNG for Shell under a long-term charter agreement.

Furthermore, South Korea’s Hyundai Samho will deliver another Shell-chartered LNG carrier to Sovcomflot.

The SCF Timmerman will start operations with Shell in the first quarter of 2021, according to Sovcomflot.

The state-owned shipping company’s fleet includes 145 vessels out of which 15 are LNG carriers.

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