Sovcomflot reported gross revenue of 1.388 billion USD in 2016

SovcomflotThe Board of Directors of PAO Sovcomflot reported gross revenue decrease of 6.4% yoy to 1.388 billion USD in 2016, which was described as good achievement, despite a significant weakening of the tanker market conditions and drop in freight rates compared by 40% and time charter market by 25%. The Russian shipowner’s EBITDA amounted to 706.5 million USD (-9.4% yoy), while the net profit dropped to 206.8 million USD (-41.7% yoy). The crisis in the shipping sector, as well as the low freight rates significantly hit the company’s finance statement, however, the Board of Directors stressed out that company has successfully coped with the tasks set for 2016 by the Enterprise Development Strategy

“The Board of Directors is satisfied with the work of Sovcomflot in 2016. The company systematically implements its development strategy focused on expanding participation in long-term oil and gas projects with a fixed yield, which allows the company to successfully overcome the high volatility factor of the tanker market and consistently achieve positive results in the work”, said Chairman of the PAO Sovcomflot Board of Directors, Ilya Klebanov. “It is important to note that during the reporting period Sovcomflot actively developed mutually beneficial cooperation with Russian and foreign charterers, domestic shipbuilding enterprises, aimed at developing and implementing effective technical solutions that make it possible to make marine transportation of energy carriers more safe for the environment. These measures will undoubtedly allow Sovcomflot should strengthen its position as a technological leader in the maritime transport services market”, added he.

During the reported period, the start of year-round transportation of high-tech SCF ships by the Shturman Albanov series of crude oil from the Ob Bay in the framework of the New Port project, as well as completed the preparations for the ice tests and the acceptance into the fleet of the company the world’s first icebreaker tanker, the Christoph de Margerie, which is designed to operate within the Yamal LNG project.

Sovcomflot is a Russian maritime shipping company specializing in petroleum and LNG shipping. It is 100% state-owned corporation, headquarters are located in Saint Petersburg.