Published: 2015-11-27 08:01:50 CET
Latvijas kugnieciba
Quarterly report

About the unaudited financial data of JSC “Latvian Shipping Company” for the nine month period

Latvian Shipping Company (“LSC”) and its subsidiaries have recorded a loss of USD 1.41 million for the first nine months of the year. This was primarily due to a loss arising from the reconsolidation of SIA “LASCO Investment” and its subsidiaries of USD 13.62 million.

Revenues held up well at USD 68.93 million, with a net voyage result of USD 61.27 million. Strong revenues, coupled with favourable foreign exchange movements, resulted in a net profit before exceptional of USD 13.68 million.

The key financial indicators for LSC Group for 9 months for the last three financial years are as follows (USD million):

  9M 2013  9M 2014  9M 2015
Sales 78.75 69.71 68.93
EBITDA 36.76 28.59 34.12
Profit before exceptionals 4.43 6.17 13.68
Exceptionals (net of profit from financial assets & loss from consolidation) (5.40) 11.92 (12.70)
Exceptionals (fleet impairment) (23.67) (32.25) (2.40)
Net loss (24.64) (14.17) (1.41)

There was no change in the LSC Group’s commercial fleet of sixteen vessels during the reporting period, but the LSC subsidiary “LSC Shipmanagement” Ltd is managing an additional four third-party tankers, bringing the total to twenty vessels. This number is expected to increase further during the coming months. The increase in the technical management of third-party vessels is testament to the competency and professionalism of LSC Group staff and is generating additional income for the Group. 

The fleet operating profit for the nine months of 2015 reached USD 39.39 million.

At the end of the reporting period 88% (fourteen vessels) of the LSC fleet were employed on period business (time-charter). The average employment period for the portion of the  fleet on time charter plus bareboat charter as at the end of reporting period was 8 months; excluding the bareboat charters (twelve vessels) – 7.7 months.

The LSC Group’s handy size vessels trade predominantly within Europe but are also technically suitable to trade within ice bound regions such as the Baltic and East Coast Canada, whereas the medium range tankers, with their greater cargo carrying capacity, trade world-wide with again having the ability to trade in most ice bound regions of the world.    

About JSC “Latvian Shipping Company” 

JSC “Latvian Shipping Company” (NASDAQ RIGA: LSC1R) is among the biggest vessel owners in the segment of medium and handy size tankers and takes leading positions in terms of the transported amount of petroleum products among similar companies in Northern Europe. The company owns 16 modern vessels employing more than 500 professional and high-skilled seamen from Latvia. Besides, it is technically serving four more vessels, thus managing a fleet of 20 vessels. The average age of the LASCO fleet is 8 years. All of the vessels have received ISM (International Safety Management) certificates.

Elīna Dobulāne, Communications Consultant

JSC “Latvian Shipping Company”

Telephone: +371-25959447