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.

Key income statement indicators (USD million)
Name 2019 2018 Difference, %
Revenue 1,665.2 1,519.9 9.6
TCE revenue 1,265.5 1,074.7 17.8
EBITDA 823.0 580.7 41.7
Net profit / (loss) 225.4 (45.6) -

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 %.

Structure of TCE revenue by operating segments (%)
Structure of the main expense items (%)

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.