Sovcomflot profit falls 95%

"The conditions in the tanker markets remained very challenging throughout the first quarter of 2013. Whilst some of the global macro-economic indicators are beginning to show signs of improvement, the benefits have yet to flow through to the tanker markets. Overall, we expect there to be no sustained improvement in these markets before 2014," said Sergey Frank, president and ceo of OAO Sovcomflot.

Average time charter equivalent (TCE) revenues for the group fell 16.4% from $241.3m to $201.8m.

As at 31 March 2013, the SCF group fleet stood at 159 vessels including JV owned assets, with 10 vessels under construction totalling at 1.2m dwt.

In January this year the first of a series of icebreaking supply vessels was named Vitus Bering at a ceremony attended by Russian president Vladamir Putin in St. Petersburg. The vessels will provide year round service to platforms in Akutun-Dagi field, ensuring continued operation in the cold climate.

Summing up the quarter's activities, Frank added, "SCF Group continued to focus on the provision of higher value-added specialist shipping services, and the development of offshore services, and providing support for Russia's long-term industrial energy projects."

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