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PAO Sovcomflot (SCF Group) board member David Moorhouse noted on Wednesday, in an evaluation of the company's performance in 2016, that the work carried out to develop new fuel-efficient, environmentally friendly technology for its ships is designed meet the needs of its eco-conscious clients.

Last year, SCF specialists completed a collaboration with shipbuilders, including Vladivostok's Far Eastern Shipbuilding and Ship Repair Center (FESRC) and South Korea's Hyundai Heavy Industries (HHI) - the technology partners of Zvezda Shipbuilding Complex in the Primorsky region of the Russian Far East, to develop the concept for SCF's new LNG-fuelled Aframax tankers, which are due to begin operating in 2018.

Commenting on the project, Moorhouse noted: "In 2016, the company completed the development of a project, designed to improve the environment for all, through the substitution of gas for heavy fuel oil. The new technology will be used to power the next generation of Aframax tankers and will signal the start of a global transformation of maritime transport towards more efficient and environmentally friendly technologies."

"The use of LNG fuel will significantly improve vessels' environmental performance, and meet the growing desire of SCF Group's customers to see their shipping requirements provided with the minimal adverse impact on the environment," Moorhouse added.

Moorhouse's comments on LNG follow those made by the company on 7th April, when it stated that the future of the tanker industry "belongs to LNG-fuelled vessels".

Additionally, the main theme presented by Sovcomflot at last week's Gastech 2017 Conference and Exhibition was "the use of LNG as a promising fuel for large-capacity vessels, which will significantly increase their environmental compatibility and efficiency".

Annual results

At a meeting held on 11th April, Sovcomflot's board of directors reviewed the results of SCF Group's operations in 2016.

In its audited financial results for 2016, issued on 20th March, net profit was $206.8 million, down from $354.5 million in 2015. Gross revenue was $1.388 billion, compared to the previous year's result of $1.483 billion, whilst EBITDA dropped to $706.5 million from $780.1 million.

The board of directors noted that "SCF Group had achieved good operational and financial results for the reporting period despite a significant downturn in the tanker market, where spot freight rates had fallen by more than 40 percent compared to 2015 and time-charter rates had declined by up to 25 percent".