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Sovcomflot in the black for 2014, expects bigger profits in 2015

Sovcomflot in the black for 2014, expects bigger profits in 2015
Sovcomflot has reported a $83.9m profit for 2014 as it continued to focus on developing its gas transportation business, and its tanker fleet benefited from a strong market.

The year's profit reverses a $39.2m loss in 2013 and revenues for the group rose 9.9% to $1.3bn.

The company's gas transportation business saw a 72.4% increase in time charter equivalent revenues to $83.2m, as its fleet carrying capacity increased.

For the crude oil transportation segment, revenues rose by 22.4% to $421.1m, despite the fleet size falling by one vessel to 60 ships at the end of 2014.

Sergey Frank, Sovcomflot president and ceo commented: “Our conventional tanker fleet was able to reap benefits resulting from improved market conditions, where we believe there is still some potential for the rates to firm up.

“The first quarter of 2015 is looking quite promising. Being based on fundamentals we are pretty optimistic that earnings performance in 2015 will exceed that of the previous year.

"Our recent achievements would not be possible without commitment and support of over 8,500 members of our international team at sea and ashore. Their commitment and professionalism lie at the heart of our performance.”

At the end of 2014 Sovcomflot had a fleet of 153 owned and chartered vessels totaling over 12.7m dwt. Ten vessels are also under construction for the Russian giant, each with long term charters in place upon their deliveries, which stretch to March 2017. The ships include two conventional LNG carriers, an icebreaking LNG carrier and a trio of arctic shuttle tankers.