Tanker market to see positive dynamics in 2014, Sergei Frank says (photo)

Tanker market to see positive dynamics in 2014, President and CEO of Sovcomflot Sergei Frank said at the Group's 13 annual business partners meeting which coincided this year with the call of the SCF Black Sea Tall Ships Regatta to the city of Sochi.

“The year of 2013 was yet another year of recession at the global tanker markets, - Sergei Fran said. – However, operating under challenging conditions Sovcomflot managed to preserve operating profit margin and undertook successive steps on implementation of the present Development Strategy having ensured the increase of income from transportation of liquefied gas and servicing of offshore oil & gas projects. The Company’s Quarter I results suggest the appearance of prerequisites for market recovery and we expect that the year of 2014 will be marked by positive dynamics. Operating one of the youngest and most modern tanker fleets in the world, Sovcomflot enjoys strong position of one of the largest tanker companies worldwide and a leader in a number of market segments. The Company succeeds in solving the tasks set forth by the Development Strategy with major activities focused on the development of state-of-the-art shipping technologies required for the development of oil & gas fields in the Arctic and subarctic region…”

The conference was traditionally attended by the Group’s BoD members, representatives of RF ministries and agencies, leading Russian and international oil & gas/shipping/shipbuilding companies, financial and investment as well as insurance and legal organizations, analytical and R&D centers.

Presidential adviser Igor Levitin, RF Transport Minister Maxim Sokolov, Chairman of Duma Transport Committee Yevgeny Moskvichev and Deputy Transport Minister of Russia Victor Olersky were the guests of honour at the conference.

In his opening speech, RF Transport Minister Maksim Sokolov said: “Annual SCF business partners conference has become a good tradition. This year the event is held for the first time in Sochi … Black Sea is a cradle of regular tanker shipping … The Black Sea is the place of location of Russia’s tanker fleet capital and Novorossiysk Shipping Company, one of SCF subdivisions… Sovcomflot succeeds in completing its tasks and significantly contributes to progressive development of the marine industry”.

Presidential adviser Igor Levitin emphasized the role of Sovcomflot in Russia’s transportation industry.

In his greetings to the conference participants Yevgeny Moskvichev said that marine transport is one of the key segments of Russia’s transportation system today covering a considerable part of foreign trade relations in Russia. “Sovcomflot is presently an undisputed leader of Russian shipping. It supports a high level of innovative approaches meeting the challenges of competitive business and operating in compliance with the best international standards of safety and quality. State Duma Transportation Committee successfully interacts with Sovcomflot experts in improving the legislation regulating marine transport activities, including that in the water area of the Northern Sea Route. We are set to further continue this fruitful cooperation with the Company.”

Sovcomflot Group (SCF) is a major Russian shipping company, one of the world’s leading in hydrocarbons transportation, seismic and geological surveys and offshore production servicing. The company owns and charters fleet of 157 vessels (with total 12.74 million ton DWT) specialising in transportation of hydrocarbons from areas with harsh ice conditions. Over fifty vessels are ice-class ships. Sovcomflot has been engaged in maintenance of major power projects in Russia and abroad, including Sakhalin-1, Sakhalin-2, Prirazlomnoye, Varandey, Tangguh, Escobar, Peregrino. Sovcomflot HQ is located in St. Petersburg with branches in Moscow, Novorossiysk, Murmansk, Vladivostok, Yuzhno-Sakhalinsk, London, Limassol, Madrid, Singapore and Dubai.