- Despite the very strong headwinds seen in the conventional tanker markets over 2017, with freight rates down by almost 50 per cent reflecting one of the worst years in a quarter of a century, we continued to implement our core strategy of industrialising our business model. Sovcomflot’s growing industrial portfolio (offshore services and gas transportation) enabled us to remain profitable operationally. Our Offshore and Gas businesses saw time charter equivalent revenues increasing by 48.7 and 17.4 per cent respectively year-on-year, providing a welcome relief from the difficult conditions facing our conventional tankers. The robust nature of the Group’s business model has shown our ability to weather the low point of the shipping cycle.
In such a challenging year, I am especially grateful to all my colleagues at sea and ashore for their continued professionalism and dedication, and to our clients and partners around the world for their valued support. It’s especially important that, in this extremely challenging year, we continued our commitment to innovation by delivering to our clients some of the most advanced vessels ever constructed, which will contribute to their upstream projects and address some unique operational challenges in the harsh environments. Further, we achieved a significant milestone with the decision to power with LNG our new generation of ice class Aframax tankers, setting new standards for emissions and making the tanker industry greener.
From Sovcomflot’s press release.
Finances’ downward pressure >>>>