SCF slips into the red

Russian shipowner SCF fell to a loss in 2013 but the company believes 2014 is already shaping up to be a better year.
Sergey Frank, CEO of Sovcomflot.

Sergey Frank, CEO of Sovcomflot.

The Sergey Frank-led company blamed one of the “most significant and sustained downturns in the tanker market cycle in a generation” for suffering a net loss of $39.2m in the 12 months to 31 December, reversing a $32.9m net profit in 2012.

“Conventional tanker operations faced continued headwinds throughout the year, though as we ended 2013 and into the first quarter of 2014, some welcome upswings in earnings indicate that the tanker market may have finally bottomed,” Frank said in a statement today.

“With the spot market for crude oil tankers firming up in the last months of 2013 and early 2014, we expect first quarter 2014 performance to show an encouraging year on year growth,” he added.

“And given the substantially reduced order book for crude oil tankers, we anticipate a further gradual strengthening of the market throughout the year, although not without some volatility.”

Adjusted for one off items SCF recorded a net profit of $11.6m last year compared to $62.3m in 2012. 

Earnings before interest, tax, depreciation and amortization (ebitda) dipped to $382.1m from $406.1m.

Total revenue also slipped by 6.7% to $1.26bn from $1.35bn however time charter equivalent earnings rose by 1.5% to $872m.

SCF operated 158 vessels at the end of the year including its first ever VLCC which is on long-term charter to Petrochina.

Its fleet is mainly comprised of crude and product tankers though it also operates shuttle tankers as well as gas carriers, offshore support vessels and three bulkers.

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