Russian state shipowner Sovcomflot (SCF Group) has seen first-half earnings eroded as it tries to work around Western sanctions.
The Moscow-listed group said net profit in the six months to 30 June was $324m, down from $496m in the same period of 2023.
Operating profit from the tankers and LNG carriers was $628m, against $912m a year ago.
Revenue dropped to $1bn from $1.2bn while operating costs increased to $205m, versus $168m in 2022.
The profit was due to the “high level of provision of the fleet with long-term contracts, as well as the continued high market conditions in the tanker market”, the shipowner said.
“Against the backdrop of increasing sanctions pressure from unfriendly countries, the company continues its systematic work to overcome emerging challenges,” the company added.
Sovcomflot mentioned operational difficulties in the employment of its ships.
“The company’s management is taking measures to resolve operational issues related to the operation of the sanctioned fleet,” it said.
Ship values stay high
Cash and deposits stood at $1.49bn, with net debt at $21m.
“The Russian economy continues to transform under sanctions restrictions, while industrial production continues to grow against the backdrop of the restraining influence of monetary policy conditions and inflation,” the shipowner said.
“Geopolitical tensions, inflation growth and the consequences of tightening monetary policy remain among the main risks affecting global economic growth,” it added.
The company said: “Due to the reorientation of trade flows, demand for tanker tonnage is maintained and the market value of ships and freight rates continue to remain high.”
