Income statement indicators

The revenue amounted to US$1,665.2 million, up 9.6 % on the previous period, with a 17.8 % increase in TCE revenue, which reached US$1,265.5 million.

In 2019 Sovcomflot significantly improved its operating profitability and posted a net profit of US$225.4 million versus a loss of US$41.6 million in 2018. In accordance with IFRS, in 2019 the Company recognised impairment expenses of US$23.6 million in relation to the fleet and other assets.

In the reporting year the Group continued to implement consistently its industrial development strategy aimed at expanding the offshore and gas business segments, whose share of time charter revenue reached 50.5 %, with revenues from the conventional fleet operations (transportation of crude oil and petroleum products) accounting for 45 %.

In 2019, 4.1 % savings were achieved in the vessel’s running costs budget through the cost optimisation programme. Vessel’s running costs for the reporting period amounted to US$356.3 million. The 10 % reduction in voyage costs and commissions (to US$399.7 million) was due to a decline in bunker prices and a decrease in the number of vessels operating in the spot market. General and administrative expenses decreased by 3 % to US$108.0 million. Financial debt servicing costs excluding interest on leasing obligations decreased by 1 % compared to 2018 and amounted to US$198.4 million.