Sovcomflot posts 2017 loss

Sovcomflot posts 2017 loss

Russia’s largest shipping company Sovcomflot slipped to a loss for the year 2017, a year characterized as ‘one of the worst’ for the conventional tanker market. 

The company reported a net loss of $113 million for the year, compared to the $206.8 million reported in 2016.

Conventional tanker freight rates fell by almost 50 percent year-on-year, reflecting an oversupply of speculative orders following the 2015 market spike, as well as the effect of sustained production cuts by OPEC and other oil producing nations and a backwardation in the oil trade, the company said.

Despite this market environment, Sovcomflot said its time charter equivalent declined by only 7.4 percent.

However, speaking of the results, Sovcomflot’s president and CEO, Sergey Frank said that the growing industrial portfolio enabled the company to remain profitable operationally.

“Our Offshore and Gas businesses saw time charter equivalent revenues increasing by 48.7 and 17.4 percent respectively year-on-year, providing a welcome relief from the difficult conditions facing our conventional tankers,” Frank said, adding that the conventional tanker freight rates dropped by almost 50 percent.

The company noted that during the last year, the first ice-breaking LNG carrier, Christophe de Margerie was delivered into long-term time-charter with Yamal LNG.

The vessel marked a year with a couple of milestones, completing its first commercial voyage, transporting LNG through the Northern Sea Route from Norway to South Korea without an icebreaker escort and it started loading from the Yamal LNG plant in December.

Share this article

Follow LNG World News

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >

Offshore Energy Exhibition and Conference 2019

The three-day event includes an exhibition where an expected 600+ supply chain companies will showcase their products and services.

read more >

LNGgc London

LNGgc is a fantastic way of raising attendees’ company profile within this market and creating greater awareness of their brand…

read more >

5th CWC China LNG & Gas International Summit & Exhibition

5th CWC China LNG & Gas International Summit & Exhibition will return 16 – 17 October 2019, bringing together the key players…

read more >