Latvijas Kuģniecība

LSC Profit from Chartering of Vessels Increased by 38% in H1/2012


LSC Profit from Chartering of Vessels Increased by 38% in H1/2012

august 31, 2012 / News

The average LSC Group chartering rates for handy sized tankers in H1/2012 increased by 8% if compared to 2011 (in Q2/2012 it was USD 12 131 per day, but in 2011 – USD 11 216 per day). Chartering rates for medium sized tankers have remained almost unchanged (in Q2/2012 it was USD 12 419 per day, but in 2011 – USD 12 882 per day).

Simon Blaydes, Chairman of the Management Board of the LSC, explains that “the overall economic situation in the world, especially in the EU and USA, still has a negative impact on the shipping business. Growth of the global economics in the future will be the main precondition for shipowners to return to profit. Strategy of the company in the current climate will be to continue to ensure a constant guarenteed cash flow by concentrating on period business when economically viable and focusing on administrative efficiencies.” 

At the end of H1/2012 80% of the LSC Group fleet was employed in the time charter market with the average remaining time charter period 13.6 months, that being a very good indicator. 

Net loss of the LSC Group for the first half of 2012 was LVL 15.69 million. The largest portion of the net loss – LVL 13.37 million relates to the impairment of the fleet. Due to the continuously unfavourable situation in the global shipping market decrease in the value of the fleet in the amount of LVL 8.31 million was recognised in Q1/2012 followed by a further decrease of LVL 5.06 million in Q2/2012. The impairments are non cash items so do not affect the cash position of the Group. The LSC Group cash position at the end of June 2012 was cash and cash equivalents in amount of LVL 18.75 million.

At June 30, 2012 the total value of the LSC Group assets was LVL 351.64 million. The total value of the LSC Group fleet has increased from LVL 277.42 million to LVL 300.34 million as result of the reclassification of the vessels which had previously been held for sale. The total equity value of the Group on June 30, 2012 was LVL 133.55 million.

Unaudited Condensed Interim Consolidated  Financial Statements for the six month period ended 30 June 2012


About JSC “Latvian Shipping Company”

In the medium-sized and handy tankers categories JSC „Latvijas kuģniecība” (NASDAQ OMX RIGA: LSC1R)   is among the leading ship owners in the world, and in terms of transport volumes of petroleum products  it is also in a leading position among similar companies in Northern Europe. It owns 20 modern ships, employing more than 700 professional and highly qualified seamen from Latvia. The total carrying capacity of the LK fleet is 957 974 DWT and the average age of the fleet is 5.5 years. All ships have received ISM (International Safety Management) certificates.