Improved crude tanker rates boost Sovcomflot's third quarter

Lloyd's List

Sovcomflot's financial results reflected an improved freight rate environment.

SOVCOMFLOT, the world’s largest tanker company in terms of fleet size, made a third-quarter net profit of $45.5m, up from $9.2m last time, reflecting a pick-up in the crude tanker segment in particular.

The Russian company’s time charter equivalent revenues rose to $304.9m from $241m. Chief executive officer Sergey Frank said the financial results reflected an improved freight rate environment over the period, especially within the crude oil segment of the tanker market. He also highlighted the company’s focus on gas shipping, saying the company took delivery of two liquefied natural gas carriers in the period, with the ships put under long-term charter agreements with Gazprom.

The company also took delivery of a very large crude carrier, on long-term charter to Petrochina International. In addition, it has started to build a high-spec LNG carrier for the Yamal LNG export project in the Russian Arctic.

Chief financial officer Nikolai Kolesnikov said contracted future revenues were $8.8bn including joint ventures.

Sovcomflot Group runs 153 owned and chartered vessels, including vessels in joint ownership with third parties, amounting to more than 12.7m dwt. It has 10 vessels under construction at shipyards, including three LNG carriers, three Arctic shuttle tankers, one multi-functional ice breaking supply vessel; and three multi-functional ice breaking standby vessels. All are scheduled for delivery between December 2014 and March 2017 and Sovcomflot says all are contracted to oil majors on long-term fixed income charters.