Income statement indicators
The historically low tanker market negatively affected SCF Group’s results in 2018, but thanks to the recovery in freight rates in the conventional segment, which began in the fourth quarter, TCE revenues amounted to US$1,074.7 million, up 1.6 % from the previous period.
In 2018, the Group demonstrated the high stability of its industrial business model and recorded a US$6.9 million profit adjusted for impairment charges on vessels and non-operating expenses versus a loss of US$ 5.3 million in 2017. In accordance with IFRS, in 2018 the Company recognised impairment provisions of US$49.3 in relation to the fleet and other assets, resulting in a total net loss of US$45.6 million.
|TCE revenue||1,074.7||1,058.0||1.6 %|
|Adjusted operating profit / (loss)See the definition in the glossary.||6.9||(5.3)||-|
|Net (loss) / profit||(45.6)||(113.0)||-|
In the reporting year the Group continued to implement consistently its industrial development strategy aimed at expanding the offshore and gas business segments, whose share of time charter revenue reached 57 %, with revenues from the conventional fleet operations (transportation of crude oil and petroleum products) accounting for 40 %. The maximisation of income from the high-margin industrial business portfolio allowed for the negative impact of fleet performance in the conventional market to be minimised.
The implementation of a cost optimisation programme in 2018 allowed achieving 10 % reduction in direct operating expenses, which amounted to US$ 377.2 million. An 18 % increase in voyage expenses and commissions to US$445.2 million was due to a rise in bunker fuel prices and an increase in the number of vessels employed in the spot market. General and administrative expenses decreased by 4 % to US$111.8 million. Net financing expenses increased to US$192.2 million amid a general rise in the prime rate in USD and an increase in the Company’s loan liabilities associated with the financing of new shipbuilding.