Russia's Sovcomflot (SCF Group) has hailed another profitable quarter that outstripped its own expectations.
The state-controlled tanker and Arctic LNG carrier specialist said net earnings to 31 March reached $116.1m, from $70.1m in the same period of 2019.
Revenue grew to $493.3m from $410.7m the year before, while Ebitda was up at $287.5m versus $206.8m.
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."
While the boss does not mention Covid-19 by name, he added: "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."
He called the growth in the quarter "significant."
Strong spot market
"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," the CEO said.
"By all measures, our performance indicators exceeded the targets set for the quarter."
Tonkovidov also said the company fully met its obligations for large-scale projects in the Arctic and Russia’s Far East, achieving all the goals set by its shareholder, the Russian state.
In February, the company told TradeWinds it had contracted revenue of $13bn.
"This is as good as it gets for any marine transportation group," chief financial officer Nikolai Kolesnikov said at that time.
"The supply demand fundamentals are very strong, with the newbuilding orderbook at historic lows. We are fairly optimistic about 2020."
The company has a fleet of 146 vessels, including those in joint ventures.
