Sovcomflot logs surge in net profit

Russia’s largest shipping company Sovcomflot reported a 149 percent rise in first-half net profit on the back of a strong term contracts portfolio.

Sovcomflot posted a net profit of $226.4 million in the January-June period, compared to $91 million a year ago.

Revenue increased by 19.8 per cent year-on-year to $951.3 million.

Sovcomflot’s chief executive Igor Tonkovidov said EBITDA over the prior 12 months has exceeded $1 billion, for the first time in the firm’s history.

January-June earnings before interest, tax, depreciation and amortisation rose 54.7 percent to $578.6 million.

“An optimal balance of long- and short-term charter contracts, together with a rational geographic distribution of vessels allowed SCF Group to fully capitalise on the freight market upswing,” Tonkovidov said.

In the first half of the year, the energy shipping market dynamics were “highly volatile” due to the usual seasonal factor but also sharp price fluctuations in the oil market, caused by changes in the OPEC+ terms.

In the short term, this has contributed to the increase in both spot and time charter rates, which has allowed the group to grow its term contracts portfolio, Tonkovidov said.

Furthermore, Sovcomflot also continued to steadily grow its industrial business portfolio, which provides a long-term fixed income stream not impacted by market fluctuations.

“Over H1, SCF Group increased its time charter revenues from gas and offshore operations by 10 percent to $342 million. At the end of the reporting period, the group had $12.8 billion in future contracted earnings and receivables, a record for the group,” Tonkovidov said.

LNG carrier fleet on the rise

Earlier this year, Sovocmflot has welcomed another liquefied natural gas carrier to its fleet, namely the SCF La Perouse.

The new-generation Atlanticmax LNG carrier with a 174,000 cubic meter capacity started its charter with French energy giant Total.

Sovcomflot has two further vessels in this series under construction, chartered to LNG giant Shell, with deliveries scheduled in 2020.

The state-owned shipping company’s fleet includes 146 vessels out of which 21 are LNG carriers.

Most Popular

Excelerate buys GasLog LNG carrier

US FSRU player Excelerate Energy has purchased a 2007-built steam liquefied natural gas (LNG) carrier from GasLog Partners, a part of Greek LNG shipping firm GasLog, according to brokers.

NextDecade, Bechtel agree $9 billion EPC deals for two Rio Grande LNG trains

US LNG firm NextDecade and compatriot Bechtel have finalized EPC contracts worth $9.09 billion for the construction of the fourth and fifth trains and related infrastructure at the Rio Grande LNG facility in Texas.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.

More News Like This

Zvezda: naming ceremony held for Arctic LNG 2 carrier

Russian Zvezda yard has hosted a naming ceremony for the first of fifteen ice-class Arc7 carriers which will serve...

Zvezda launches Arctic LNG 2 carrier

Russian Zvezda yard has launched a new ice-class Arc7 carrier which will serve the Novatek-operated Arctic LNG 2 project. The...

Zvezda delivers LNG-powered tanker to Sovcomflot

Russian shipbuilder Zvezda has delivered one LNG-powered Aframax tanker to owner Sovcomflot and charterer Rosneft. Zvezda handed over the 112,650-dwt...

DSME cancels third LNG carrier order linked to Sovcomflot

South Korean shipbuilding giant Daewoo Shipbuilding and Marine Engineering has terminated an order for another LNG carrier after a...