Sovcomflot CEO: Tanker Market Shows "Early Signs" of Recovery

Frank said the company's development strategy involves adoption of new technology

The tanker market is "showing the early signs of a long overdue recovery," Sergey Frank, president and CEO of Russian shipping company Sovcomflot said in an emailed statement discussing the company's results for the first quarter of 2014.

The company's gross revenue grew 16.5 percent year-over-year in the quarter to $261.5 million, while its net profits hit $58.1 million, up from $2 million in Q1 2013.

Frank said the company's business model delivered good results even during the rough market of the past five years.

"Our balanced chartering policy whilst being conservative enough makes us well positioned for the upswing in the market," he said.

"By focusing on servicing the transportation needs of our core clients and on large-scale industrial projects, in the hydrocarbons sector, we have benefited from better vessel utilisation and long-term contracted revenues."

During the quarter, the company received the tri-fuel Atlanticmax ice class liquefied natural gas (LNG) carrier Velikiy Novgorod, which will be employed under a long-term charter by Russian gas company Gazprom Group, and its very large crude carrier SCF Shanghai entered service on a long-term time-charter agreement with PetroChina International.

Frank said the company is continuing to implement a development strategy involving the adoption of new technologies across its fleet.

"Specifically, we aim to provide safe and reliable transportation for the developing oil and gas fields in the Arctic and sub-Arctic regions," he said.

A 173,000 cubic meter LNG carrier that Sovcomflot is scheduled to receive in 2016 is considered the world's highest valued vessel at $321.5 million.