Russian Federation-controlled shipowner reports second-quarter net profit of $7.3m as revenues from crude and product tanker sectors slump 55%
Vessels deployed from government-backed Arctic oil and gas projects contributed nearly half of service revenues in first half
SOVCOMFLOT returned to profit in the second quarter as growing reliance on its industrial shipping segment sheltered the company from the longstanding downturn in crude and product tanker freight rates.
The Moscow-listed shipowner has a fleet of 137 ships, excluding newbuildings on order, with 55 crude tankers and 44 product tankers on the water.
Its offshore services and gas transportation divisions accounted for 47% of half-year chartering and related revenues (defined as ‘service revenues’), figures show.
The shipowner said it now operated 43 vessels in this ‘industrial’ segment, which covered its ice-class gas carrier and shuttle tanker fleets deployed on government-backed Arctic oil and gas projects.
These revenues exceeded those from the combined crude and product tanker fleets, described as ‘conventional shipping’, half-year figures show.
In 2020’s first half, crude and product tanker revenues comprised 58% of service revenues.
Sovcomflot, which listed on Moscow’s stock exchange last year, reported a second-quarter net profit of $7.3m on revenue of $396.9m.
That compares to $110.3m profit for the same period in 2020 on $458m in revenues, and a $1.7m loss in the prior quarter.
The Russian Federation holds an 82.8% controlling stake in the company.
Also reported over the first half and post June 30 were the sales, or assets held for sale, of two panamax bulk carriers, four aframax, and three suezmax tankers, as well as two medium range product tankers.
Sovcomflot’s conventional tanker business remained under pressure as spot tanker rates dropped, resulting in a 55% year-on-year decline in revenues, the company said.