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Sovcomflot hopes to turn around major 2013 deficit

Major Russian tank carrier Sovcomflot experienced a setback from 2012 to 2013, on revenue as well as profits. The development was caused by a new strategy, says the carrier.

Sovcomflot, which has a fleet of a total 158 ships, finished 2013 with a deficit of USD 39.2 million, compared to a USD 32.9 million profit in 2012, while revenue declined from USD 1.353 billion in 2012 to USD 1.262 billion in 2013. The carrier attributes the negative development to the fact that the traditional tank business weighed the result down in a tough market, while new Sovcomflot ventures are developing positively.

“Despite another challenging year for the international shipping industry, the Group made further progress with the implementation of its long-term strategy and transformation from purely a tanker company into a provider of diversified marine services for energy companies. The importance of this shift was reflected by the continuing growth of our higher margin business segments in 2013; liquefied gas transportation, shuttle tankers, and high-spec icebreaking supply vessels," says Sovcomflot CEO Sergey Frank in relation to the annual report.

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