RUS
Media
MainMediaSCF in the news

Sovcomflot boosted by industrial shipping focus

Print

26 August 2021

Michelle Wiese Bockmann

Lloyd's List

Russian Federation-controlled shipowner reports second-quarter net profit of $7.3m as revenues from crude and product tanker sectors slump 55%

Vessels deployed from government-backed Arctic oil and gas projects contributed nearly half of service revenues in first half

SOVCOMFLOT returned to profit in the second quarter as growing reliance on its industrial shipping segment sheltered the company from the longstanding downturn in crude and product tanker freight rates.

The Moscow-listed shipowner has a fleet of 137 ships, excluding newbuildings on order, with 55 crude tankers and 44 product tankers on the water.

Its offshore services and gas transportation divisions accounted for 47% of half-year chartering and related revenues (defined as ‘service revenues’), figures show.

The shipowner said it now operated 43 vessels in this ‘industrial’ segment, which covered its ice-class gas carrier and shuttle tanker fleets deployed on government-backed Arctic oil and gas projects.

These revenues exceeded those from the combined crude and product tanker fleets, described as ‘conventional shipping’, half-year figures show.

In 2020’s first half, crude and product tanker revenues comprised 58% of service revenues.

Sovcomflot, which listed on Moscow’s stock exchange last year, reported a second-quarter net profit of $7.3m on revenue of $396.9m.

That compares to $110.3m profit for the same period in 2020 on $458m in revenues, and a $1.7m loss in the prior quarter.

The Russian Federation holds an 82.8% controlling stake in the company.

Also reported over the first half and post June 30 were the sales, or assets held for sale, of two panamax bulk carriers, four aframax, and three suezmax tankers, as well as two medium range product tankers.

Sovcomflot’s conventional tanker business remained under pressure as spot tanker rates dropped, resulting in a 55% year-on-year decline in revenues, the company said.

Back to the publications list

© PAO Sovcomflot 2024

The information provided on this webpage (the “Information”) is not directed or intended for distribution to, directly or indirectly, or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration, licensing or other permission within such jurisdiction. The Information may not be taken, transmitted or distributed, directly or indirectly, in or into the United States (or to U.S. persons), Canada, Australia, the Russian Federation, Italy or Japan or in any other jurisdictions in which (and to the extent) it would be prohibited by applicable law to do so.

The Information does not constitute an offer or an advertisement of any securities in any jurisdiction.

The Information is not an offer for sale of securities in the United States.

The Information does not constitute an offer of any securities in Russia or to or for the benefit of any Russian person. The Information is not intended for any persons in the Russian Federation who are not “qualified investors” within the meaning of the Federal Law no. 39-FZ “On the Securities Market” dated 22 April 1996, as amended (the “Russian QIs”) and must not be distributed or circulated into Russia or made publicly available in Russia or made available to any persons who are not Russian Is, unless and to the extent otherwise permitted by Russian law.

BY CONTINUING REVIEW OF THE INFORMATION YOU CONFIRM THAT YOUR REVIEW AND USE OF THE INFORMATION WOULD BE PERMITTED BY, AND WOULD NOT BE CONTRARY TO, ANY APPLICABLE LAW OR REGULATION.