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Sovcomflot posts strong 9-month results, raises extra finance

Photo: Sovcomflot SCF Barents_Lo_Res.jpg
Sovcomflot (SCF) has released Q3 results to end-September showing that time-charter equivalent (TCE) revenue increased 22% year-on-year to $1.07bn while net profit more than doubled to $249.5m.

SCF attributed the results partly to strong performance of its conventional tanker fleet, where TCE revenue rose 44% to $501.3m over the nine months on the back of strong H1 results, as well as delivery of two new LNG carriers employed under long-term contracts.

However, the company points out that Q3 TCE revenue was up only 1.6% to $287.1m as the market started to adjust in what it dubs “traditionally the weakest quarter” due to the summer decline in crude oil and oil products demand, the seasonality more pronounced this year due to effects of the Covid-19 pandemic.

But with the newbuilding order book at historic lows, SCF says it considers the tanker sector “well positioned for a recovery and that freight rates will respond positively and quickly to any increase in the refining output of oil products, and the return of crude production and shipping to healthy levels.”

Separately, the company last month raised $480m through an IPO of some 15% of its shares on the Moscow Stock Exchange.

Earlier this week SCF also announced that it had secured a new $155m credit facility lasting up to eight years from MUFG Bank and Development Bank of Japan to refinance two LNG carriers owned jointly with NYK Line and Samudera serving the Tangguh LNG plant in Indonesia.

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