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Sovcomflot stacks up profit in 2015

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21 March 2016

Andy Pierce

TradeWinds

A strong tanker market and a growing gas fleet catapulted Sovcomflot to a stronger full-year profit. 

The Russian owner, a long-term IPO candidate, recorded net income of $354.5m in 2015, beating the $83.9m seen in 2014. 

Sovcomflot saw revenue rise by almost 8% to $1.48bn, while its overall divided was more than doubled to $20.5m. 

Sergey Frank, president and chief executive of Sovcomflot, said in a statement: “We are very pleased with our results for 2015, which have exceeded our expectations. 

“Significantly, there has been a fourfold increase in our bottom line profits in 2015 compared with the previous year.” 

Tanker tonic 

The owner’s crude oil fleet of 59 vessels saw its top line rise by 28.7% to $542.1m, while its 34-strong products tanker stable generated $240.3m, a 12.6% climb despite a reduction in size during the year. 

“In the short term, we remain cautiously optimistic with regard to the freight market dynamics due to the fundamental supply and demand balance,” Frank said. 

Its LNG and LPG arm saw revenue shoot up by two thirds to $137.5m helped by the delivery of the 170,2000-cbm SCF Melampus and SCF Mitre. 

Sovcomflot raised $756m in new debt last year, including loans for four ice breakers and three shuttle tankers. 

Nikolay Kolesnikov, chief financial officer of Sovcomflot, says the company’s sound underlying financial metrics allowed it to enjoy good access to the financial markets and have its credit ratings affirmed or uplifted by the rating agencies. 

Strategy unchanged 

“Looking ahead, our core strategy remains unchanged,” Frank said. 

“We will maintain our leading position as one of the world’s largest tanker fleet owners and operators. 

“At the same time Sovcomflot will continue to build a robust pipeline of fixed income projects in LNG and offshore services.”

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