Russia’s largest shipping company Sovcomflot reported tightening losses during the year 2018, as it turned to profit in the fourth quarter of the year.
The company reported a $45.6 million net loss for the year compared to a net loss of $113 million the previous year. In the fourth quarter, Sovcomflot reported an 11.9 million profit, swinging from a $106.2 million loss in the corresponding quarter in 2017.
“During the reporting period, SCF Group achieved solid operating and financial results despite another difficult year for the conventional tanker market. A strong performance from the group’s gas and offshore divisions offset continued weakness in the conventional tanker fleet over 2018 and helped drive the group’s operating profit to $187.3 million,” Sergey Frank, president and CEO of Sovcomflot said.
The annual results reflected a strong contribution from the industrial shipping business, comprising offshore services and LNG transportation. These activities now account for 57.2 percent of the group’s time charter equivalent (TCE) revenues, up from a 50.9 percent share in 2017.
Sovcomflot noted its time charter equivalent (TCE) revenue edged up 1.6 percent from $1.06 billion in 2017 to $1.07 billion in 2018. The fourth quarter TCE rose 10.6 percent, from $272 million in Q4, 2017 to $300.7 million in the fourth quarter.