Latvijas Kuģniecība
THIS COMPANY IS PART OF VENTSPILS NAFTA GROUP THIS COMPANY IS PART OF VENTSPILS NAFTA GROUP
 
 

About the Unaudited Financial Statements of JSC „Latvian Shipping Company” for the nine month period

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About the Unaudited Financial Statements of JSC „Latvian Shipping Company” for the nine month period

november 24, 2014 / News

The interim financial result for Latvian Shipping Company and its subsidiaries (LSC Group) for the nine months of 2014 resulted in a net loss of 14.17 million USD, which is 10.47 million USD less compared to the respective period in 2013.

The accumulated result for nine months of 2014 was positively affected by income from a partial settlement in respect of the Antonio Gramsi Corporation court case in the High Court in London in the amount of 20.05 million USD, sale of real estate property located on Jēkaba street, Riga, and revaluation of the investment in the medical clinic SIA “Via Una”. However, vessel impairments in the amount of 32.25 million USD, losses from the sale of the vessel “Riga” in the amount of 0.34 million USD as well as a re-evaluation of the investment in AS “Latvijas Naftas tranzīts” in the amount of 8.34 million USD has negatively impacted on the Group results. The Group suffered a loss of 24.64 million USD in the same period last year.

As of the 30th September 2014, the fleet consists of sixteen modern tankers with the average age of 7 years. The total income from the fleet for the nine months of 2014 was 69.36 million USD, however fleet’s net voyage was 57.99 million USD. The vessel operating profit for the nine months of 2014 after depreciation and dry-dock amortisation was 20.66 million USD, a result comparable to that achieved in the previous period (9M/2013: 21.38 million USD).

At the end of the reporting period 88% (fourteen vessels) of the LSC fleet were employed on period business. The average employment period for the portion of the  fleet on time charter plus bareboat charter was approximately ten months, while excluding the bareboat charters (twelve vessels) – eight months.

At the end of the 3rd quarter the LSC Group cash position had improved and the Group had cash and short term deposits with maturity up to twelve months in the amount of 40.29 million USD. As of 30th September 2014 the total value of LSC Group assets was 470.31 million USD, however the total equity value of the Group was 201.88 million USD.

LSC management points out that the first nine months of 2014 has been disappointing for the products tanker market. However, as previously stated, having the vast majority of the LSC fleet on time charter has enabled the LSC Group to maintain a steady income stream.

The IEA (International Energy Agency) which advises industrialized nations on oil policies continues to trim its projection for growth in global demand for oil for the balance of 2014 and beyond citing weaker than expected demand. The recent sharp drop in the price of crude oil is also indicative of this decrease in global demand. In the medium to long term this could have a negative impact on both earnings and fleet values.

Meantime, in spite of this negative outlook, Q4 has proved to be much more encouraging for the products tanker market than was expected with ship owners experiencing better than expected earnings. It is to be hoped that this trend continues for the balance of 2014 and beyond.    

Latvian Shipping Company Group consolidated unaudited financial statements for 9 months of 2014 

About JSC “Latvian Shipping Company”

JSC “Latvian Shipping Company” (NASDAQ OMX 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 700 professional and high-skilled seamen from Latvia. The average age of the LK fleet is 7 years. All of the vessels have received ISM (International Safety Management) certificates.

Additional information:

Elīna Dobulāne, Communication Consultant

JSC “Latvian Shipping Company”

Phone: +371 25959447

E-mail: elina.dobulane@vnafta.lv

www.lk.lv