Sovcomflot swings to $6.8 mln IFRS net loss in January–September

MOSCOW, Nov 17 (PRIME) -- Russian shipping company Sovcomflot posted a U.S. $6.8 million net loss in January–September against a $218.1 million net profit in the same period of 2016, as calculated under International Financial Reporting Standards (IFRS), the company said in a statement on Friday.

Revenue rose 2% on the year to $1.060 billion in the period. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 26% to $408.3 million.

“Trends on the world freight markets is still fairly unfavorable for tanker ship owners, especially for operators that work in the conventional segment. An exceptionally high volatility of the spot market, supply of the shipping space that has exceeded demand for a long time, low freight rates – and contraction of rates in some segments have reached 70% on the year – all of this has a significant negative impact on the work of tanker owners,” Sovcomflot said.

The decision of OPEC and non-OPEC states to reduce their oil production also hurt tanker shipping. “The current situation at the tanker market is comparable to 2011, which was the worst year for the industry over the past 25 years, by many factors,” the company said.

End