Sovcomflot of Russia said its gross revenue (freight and hire receivable) increased by 16.5 per cent to USD 365.1 million in the first quarter of this year.
After accounting for voyage costs and commissions, TCE revenues increased by 34.1 per cent to USD 270.6 million (Q1 2013: USD 201.8 million). Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 65.7 per cent to USD 153.6 million (Q1 2013: USD 92.7 million). Meanwhile, profit for the period rose 29.1 fold to USD 58.1 million (Q1 2013: USD 2.0 million).
Sovcomflot’s TCE revenues increased by 81.8 per cent to USD 20.7 million in the three months to 31 March 2014, compared with Q1 2013. On 2 February 2014, Sovcomflot took delivery of Velikiy Novgorod. This advanced design 170,000 cubic metres capacity LNG carrier is constructed to ice class Ice2 and is engaged on a 15 year time charter to Gazprom.
The company’s corporate strategy places a priority on the development of its LNG transportation activities. To this end there were four LNG vessels on order at the period end, each of over 170,000 cubic metres capacity, for delivery up to Q1 2016. All the vessels have long-term time-charter arrangements in place with Gazprom, Shell or Yamal LNG as charterers.
Sergey Frank, President and CEO of Sovcomflot, said:
“Following five years of recession, the tanker market is showing the early signs of a long overdue recovery. Throughout the down-cycle, Sovcomflot’s robust business model has continued to deliver. Our balanced chartering policy whilst being conservative enough makes us well positioned for the upswing in the market. By focusing on servicing the transportation needs of our core clients and on large-scale industrial projects, in the hydrocarbons sector, we have benefited from better vessel utilisation and long-term contracted revenues. The Group’s future contracted revenues of USD 6.7 billion provided welcome protection against volatility in the tanker markets and a solid basis for further growth of our business.”
Press Release, June 9, 2014