Article

2023-09-18 Economy

Sovcomfleet (largest Russian oil/gas tanker fleet) reports highest profits in 20 years

[JohnHelmer] The US-led sanctions war against Russian fossil fuel exports, especially oil, has been the best thing to have happened to Sovcomflot, Russia’s leading shipping company and operator of the world’s largest oil and gas tanker fleets.

Revenues are up, earnings and profits are multiplying; Sovcomflot has never had so much cash in the bank; its debt is down to the lowest level in more than twenty years – and none of it is in American or European bank hands.

Released on August 28 and expressed in discreet language, the new company financial report says: “Revenues from tanker business segments (transportation of crude oil and petroleum products) are supported by favourable market conditions against the background of increased demand for tanker tonnage, taking into account the changing geography of international trade in oil and petroleum products. Despite the presence of a seasonal reduction in freight rates in the summer, the company believes that the market fundamentals, including the limited growth of the global tanker fleet due to the small number of orders for the construction of new vessels, suggests a high probability of stability in the medium term of freight rates at a level above the historically average.”

“Favourable market conditions” is Sovcomflot’s phrase for the US and NATO sanctions, first imposed on Sovcomflot’s financing and payment operations in February 2022, and escalated this year in European Union (EU) and UK sanctions targeting Dubai and Hong Kong fleet management companies. The reference to “changing geography” means what shipping experts and analysts from London to Oslo, Piraeus to Singapore acknowledge privately: “The war is good, very good for the oil tanker companies which can run the gauntlet of the Americans”, says a Greek source. The international shipping media are fearful of reporting this publicly.

Posted by Slenter Panda4300 2023-09-18 06:18|| || Front Page|| [11138 views ] Top

#1 To be an effective long-term conflict, it must be financed from both sides.

Posted by Besoeker 2023-09-18 07:35|| 2023-09-18 07:35|| Front Page Top

#2 One would hope revenue and profits are up since the Russians can't ship pipeline oil to Europe, their ex-largest market.

Instead the Russians ship to India "free" oil. Rupees are useless in international trade and the Russians can't spend it in India. The Indians then refine the crude and sell it for hard currency in Asia and even Europe, probably on the same broke ass tankers that brought the free crude to India. Profit!

Posted by Enver Slager8035 2023-09-18 23:09|| 2023-09-18 23:09|| Front Page Top

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