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Crude oil shipping leads profit surge at Sovcomflot

Crude oil shipping leads profit surge at Sovcomflot
Sovcomflot reports an increase in operating profits across all five of its business sectors in the third quarter, bringing net profit to $45.4m up from $9.1m in the same period last year.

The Russian state-owned shipowner's crude oil transport operations reported an operating profit of $111.2m, up from $61.8m in Q3 2013, while the products division reversed a $12.1m loss in the third quarter last year with a $14.1m profit.

Operating profit in the gas segment almost doubled to $35.6m, and offshore operating profit was up 11.3% to $86.8m.

The profit hike brings the company's nine month profit up to $109m, up from a $5.2m loss in the first three quarters last year.

“These financial results reflect an improved freight rate environment over the period, especially within the crude oil segment of the tanker market," Sergey Frank, president and ceo of Sovcomflot commented.

“The company took the delivery of two ultra-modern LNG carriers of the Velikiy Novgorod series, and a second VLCC of 320,000 dwt. These ships are operated under long-term agreements with OAO Gazprom and Petrochina International (China) respectively. Elsewhere, we completed several important new long-term agreements, including for the construction and operation of four IBSV’s for Sakhalin Energy, and for a unique Arctic LNG carrier to serve the Yamal LNG project. The delivery of these vessels is scheduled from 2016 to 2017.”

At the end of the quarter the group's fleet totally 153 owned and chartered vessels grossing 12.7m dwt, with 10 vessels under construction, all with long term charters: two LNG carriers; one ice-breaking LNG carrier; three Arctic shuttle tankers; one multi-functional ice breaking supply (MIB) vessel and three MIB standby vessels.