SCF falls into the red, focuses on gas

Despite an operating profit of $12.4m for the second quarter, Sovcomflot (SCF) has reported a net loss of $16.4m, compared to a $5.5m profit for the same period last year.

Gross revenue for the group reached $315.2m for the quarter, down from $358.9m in the same period last year.

“The tanker shipping market remains extremely challenging, as we are effectively going through the fifth consecutive year of recession in the global shipping industry,” commented Sergey Frank, president and ceo.

“In H1 2013 the Clarksea Tanker index was 8.4% lower than in H1 2012, marking another 20-year low. On the other hand, some “green shots” – in particular, a recent improvement product tanker rates – may indicate that the market has bottomed out. Given all this, we remain cautiously optimistic for 2014, and expect a slow recovery in the global tanker market to have begun by then in earnest.”

SCF is focussing efforts on LNG and LPG carrying.

SCF, United Shipbuilding Corporation and Gazprom Marketing and Trading signed agreements to reserve construction slots for an LNG carrier series, as well as a wider collaboration on the improvement of Russia’s LNG shipbuilding and engineering capabilities through training partnerships with experienced yards.

Shipments are set to launch from the LPG terminal in Ust-Luga in Q3 2013 and will involve two of SCF’s new LPG carriers.

The group currently operates a fleet of four wholly owned LNG and LPG vessels in total, with a further six on order and four LNG carriers jointly owned with third parties. Gas carriers accounted for 5% of TCE revenues in the first half of 2013, $21.9m, compared to $19.9m in the first half of 2012.

Posted 30 August 2013

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