Sovcomflot has reported its results for the fourth quarter and the full year of 2018.
During 2018, the group’s gross revenue was up 5.9% $1.5 bn, time-charter equivalent revenue up 1.6% to $1.07 bn, and EBITDA up 6.5% to $580.7 mn.
Net loss was down by almost 2.5-fold to $45.6 mn. Adjusted net profit made $6.9 mn compared to the adjusted net loss of $5.3 for 2017.
During Q4 2018 the gross revenue grew by 10.4% up to $413.4 mn, time-charter revenue increased by 10.6% up to $300.7 mn, and EBITDA was up 21.2% to $166.1 mn.
Net profit for Q4 2018 was $11.9 compared to the net loss of $106.2 for Q4 2017, and adjusted net profit made $13.9 mn compared to the adjusted net loss of $30.8 mn.
Sergey Frank, President and CEO of Sovcomflot, commented: “During the reporting period, SCF Group achieved solid operating and financial results despite another difficult year for the conventional tanker market. A strong performance from the Group’s gas and offshore divisions offset continued weakness in the conventional tanker fleet over 2018 and helped drive the Group’s operating profit to USD 187.3 million”.
“Looking forward, we remain firmly committed to growing our industrial businesses and this will be central to SCF Group strategy through to 2025. Whilst our conventional tanker fleet swung into profit in Q4 2018, it was insufficient to offset the impact of the dire tanker markets experienced by the industry as a whole in the first half of the year. The outlook for 2019 remains positive and our performance in Q1 2019 has exceeded expectations”.
“There is industry optimism that 2H 2019 and 2020 in particular will provide better times for the tanker markets with increased demand for oil and oil products, restrained newbuilding supply and the potential for favourable disruption resulting the introduction of Marpol 2020 towards the end of the year. The Company is well positioned to take advantage of continued improvement in the conventional tanker markets”.