Sanctions have brought Sovcomflot tankers to losses

Sovcomflot showed losses for the first time. In January, the United States expanded sanctions against Russia's largest shipping company and its entire fleet, which transports oil, petroleum products and LNG, fell under restrictions.

"According to the results of the reporting period, the company's revenue based on the time charter equivalent amounted to $ 222 million, EBITDA — $ 105 million with a margin of 47%. The adjusted net loss excluding the non—monetary effect of the impairment of part of the company's fleet under sanctions restrictions and the loss from exchange differences amounted to $ 1 million," Sovcomflot reports in the information on the results of operations in the first quarter of 2025.

The company noted that in January unprecedented sanctions restrictions were imposed against Sovcomflot and its vessels, which created additional commercial and operational difficulties in the operation of the fleet.

"Despite these events, the company's business model demonstrates high sustainability due to the portfolio of existing long-term contracts and a diversified fleet structure. A sufficient reserve of cash liquidity and a balanced capital structure also allow the company to maintain a stable financial position," Sovcomflot reports.

"The company continues systematic work to minimize the negative impact of sanctions restrictions on its activities, consistently adhering to high standards of maritime safety and the quality of maritime operations," the shipping company added.

Sovcomflot is one of the main carriers of Russian oil. After the introduction of sanctions, the shadow fleet took over most of the volumes.