Sovcomflot’s Q1 2014 results highlight a strong start to the year, in addition to the further expansion of the company’s LNG fleet.
Sovcomflot records an 16.5% increase in gross revenue (freight and hire) to US$ 361.5 million, a 34.1% increase in time charter equivalent (TCE) revenues to US$ 270.6 million and a 65.7% rise in EBITDA to US$ 153.6 million.
The company’s net profit reached US$ 58.1 million, as compared to US$ 2. million in Q1 2013).
Sovcomflot expanded its LNG fleet with the delivery of Velikiy Novgorod, tri-fuel 170 200m³ Atlanticmax ice class LNG carrier – the first LNG vessel in a series specially designed for and employed under a long-term charter by Gazprom Group.
The Group’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 m3 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.
Long overdue recovery
Sergey Frank, President and CEO of OAO 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 US$ 6.7 billion provided welcome protection against volatility in the tanker markets and a solid basis for further growth of our business.
“During the first quarter of 2014 we continued to implement the Group’s development strategy. This is designed to ensure that we continue to use state-of-the-art technologies across our fleet, in order to serve the evolving needs of our clients. Specifically, we aim to provide safe and reliable transportation for the developing oil and gas fields in the Arctic and sub-Arctic regions.
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/lng-shipping/09062014/sovcomflot_posts_q1_2014_results_722/