Russian state-owned shipping company Sovcomflot (SCF Group) has seen earnings chopped so far in 2024 as Western sanctions continue to complicate its tanker operations.
The Moscow-listed tanker and gas carrier owner said it made $505m in net profit in the nine months to 30 September, against $702m in 2023.
Earnings were logged “thanks to a stable level of operating income, taking into account the significant provision of the fleet with long-term contracts,” the shipowner added.
But it said: "The limiting factor for the company's operations in the reporting period was the introduction of new sanctions. The company continues to work systematically to overcome emerging challenges."
In September, the UK blacklisted 10 Sovcomflot ships it described as “high-volume offenders” working around the clock to transport Russian oil.
The measures marked the third round of designations since the UK began targeting shadow fleet vessels in June. It has now sanctioned 25 tankers.
The latest round included six aframaxes and four suezmax tankers.
The UK government said the vessels included three that alone have hauled oil worth more than $5bn since the invasion of Ukraine.
They are the Sovcomflot-linked 122,039-dwt Nikolay Zuyev (built 2012), the 111,682-dwt NS Asia and 102,946-dwt Zaliv Aniva (both built 2009).
The Russian group’s nine-month revenue was $1.5bn, down from $1.8bn the year before.
Costs mount
Operating costs have grown to $312m from $262m.
Sovcomflot reaffirmed its commitment to the goal of paying annual dividends at the level of 50% of adjusted annual profit.
A decision on this for 2024 will be made by the company's shareholders at the annual general meeting of shareholders in 2025.
Total assets hit $7bn at the end of the third quarter, versus $7.2bn as of 30 June.
Cash and deposits fell to $1.35bn, down from $1.49bn at the end of the second three months.
Net debt has increased to $116m, from $21m year-on-year.
