Sovcomflot’s first quarter 2020 results reflect seasonal swings and the surge in the spot market
Global leader in Arctic logistics and Arctic tanker operations, Sovcomflot, operations arm of the SCF Group, has reported healthy results for the first quarter ended 31 March 2020 compared to the same period in 2019. Gross revenue from freight and hire was up 20% to US$493M producing a net profit of US$116M. This was a 66% increase on the net profit for Q1 2019.
Sovcomflot president and chief executive Igor Tonkovidov said “The first quarter saw us operating against the backdrop of a seasonal upswing in tanker freight rates, which benefited shipowners. At the same time, the oil market was extremely volatile during the quarter. Coupled with new emerging non-market challenges, this called for SCF’s team to perform at its best.”
Q1 2020 also saw some significant SCF Group landmark events:
Considering these developments and the Q1 results, Mr Tonkovidov said, “In this context, the Group achieved a significant growth in its key operating and financial metrics over the first quarter this year. The conventional fleet overperformed on the back of a strong spot market environment which, together with a further increase in overall productivity and operational efficiency, helped drive the increase in revenues. By all measures, our performance indicators exceeded the targets set for the quarter, as well those related to the results achieved in Q1 2019. We fully met our obligations for large-scale projects in the Arctic and Russia’s Far East that we service, and successfully achieved all goals set by the shareholder for the period.”
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