PAO Sovcomflot (SCF Group) has reported its results for the first quarter ended 31 March 2019.
The Group’s gross revenue was up 18.9% to $410.7 mn, time-charter equivalent earnings up 26.1% to $313.9 mn, EBITDA up 62.5% to $206.8 mn. Net profit made $70.1 mn compared to net loss of $16.1 mn for Q1 2018.
Sergey Frank, President and CEO of PAO Sovcomflot said: “Sovcomflot started 2019 with a strong Q1 performance, boosted by a return to profitability in our conventional crude and product tanker markets following an upswing in the first months of 2019. Profits from our crude fleet in particular increased 53 per cent year-on-year compared to Q1 2018.
“Although spot market rates for conventional tankers have yet to reach their historic averages, they have come off the low levels witnessed in the 2017-Q3 2018 period and, whilst we remain cautious for Q2 2019, we believe that a sustainable market recovery in the conventional tanker markets appears likely towards the end of 2019 and through 2020.
“Despite cautious optimism about conventional tankers, it is our industrial fleet working in the Offshore and Gas sectors where Sovcomflot specialises in delivering safety-focused operations, with high quality assets, under long-term contracts that remains central to Group strategy going forward. We have a number of such projects delivering in the next two years, and a pipeline of opportunities that we are looking to develop over the next five year window that will further increase Sovcomflot’s participation in these core strategic sectors”, he concluded
According to Nikolay Kolesnikov, Executive Vice President and CFO of PAO Sovcomflot, “With a stable balance sheet and positive cash-flow during the first quarter, supported by good earnings visibility, Sovcomflot is well positioned to continue with the implementation of its strategy and fulfilling the evolving needs of our clients. Sovcomflot’s contracted capex is fully funded, and the company maintains access to international and domestic sources of long-term capital.”