EBITDA came in some 17.1% stronger at $146.9 mill, compared to $125.4 mill for the same period in the previous year.
Gross revenue was 13.1% higher at $396.4 mill in 3Q18, compared to $350.5 mill in 3Q17.
For the first nine months of this year, SCF suffered a loss of $57.5 mill, compared to a loss of $6.5 mill in the 2017 period. EBITDA for the first nine months was $414.6 mill, compared to $408.3 mill in 2017 and gross revenue rose by 4.3% to $1.11 bill, compared to $1.06 bill in 2017.
During the reporting period, the tanker freight markets remained in a depressed state, as vessel supply continued to outstrip vessel demand, SCF said. Signs of a better balance have emerged more recently following longer term oil price recovery and worldwide fleet removals over 2H17 and 1H18.
These factors partly led to the start of a recovery in freight levels in the conventional tanker fleet towards the end of 3Q18, in particular with the large crude vessel segments.
This improvement has continued into 4Q18 and has resulted in a healthy increase in earnings across the Group’s crude carrying vessels, an improvement that is forecast to hold steady in the near term and into 1Q19.
Subsequent to 3Q18, in October, ‘Lomonosov Prospect’, SCF’s second ‘Green Funnel’ Aframax completed her maiden voyage along the Northern Sea Route (NSR) carrying clean petroleum products.
During the voyage, the crew successfully tested the operation of the ship’s engines and fuel system controls using LNG, as well as the operation of navigation equipment and machinery in ice conditions at sub-zero temperatures.
Commenting on the Group’s results Sergey Frank, SCF president & CEO, said: “The Group returned to positive numbers in 3Q18, with continued growth in SCF’s industrial, fixed income businesses.
“The Offshore and Gas divisional performances remain at the core of the Group’s profitability and earnings performance, contributing now around 60% of the Group’s net revenues. The green shoots of recovery in the conventional tanker market and in the larger crude sector in particular, are encouraging for 4Q18 and may bring a welcome earnings boost on top of that provided by the Gas and Offshore divisions.
“Of particular note, we achieved a key milestone in our drive to innovate within the tanker industry with the delivery and the first LNG fuelling of ‘Gagarin Prospect’ in partnership with Shell, and the project is an excellent example of SCF partnering its client to harness technological innovation to provide cleaner, safer and more efficient maritime transportation services,” he said.
Nikolai Kolesnikov, SCF’s senior executive officer & CFO, said: “During the nine month period, the Group completed financing and refinancing transactions amounting to $424 mill in total, including a $106 mill long-term facility with Sberbank, to finance an Arctic shuttle tanker and a $252 mill long-term facility with international banks to finance six ‘Green Funnel’ Aframax tankers.
SCF’s long-term offshore and gas businesses increased their TCE revenues by 17.7% and 14.5%, respectively in the nine month period, compared with the first nine months of 2017. The company continues to enjoy an exceptionally strong pipeline of future contracted revenues amounting to a total of $7.7 bill,” he concluded.