JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) today announced its
financial results for the first quarter of 2006. According to the Group's
Unaudited Financial Statements considered today, 30 May 2006, by LASCO
Supervisory Council, LASCO Group's profit after tax for the first three months
ended 31 March 2005 reached USD 10.2 million, the Group's total Voyage Income
being USD 56.1 million. As at the end of the period JSC Latvijas kuģniecība
Unaudited Shareholders' Equity was USD 394.8 million or USD 1.97 per share,
which is the highest level in the history of LASCO as a private company.
In the first quarter of 2006, all types of LASCO fleet operated with profit
despite a material drop in the tanker SPOT rates and reefer freight rates (on
average 20-30%) affecting LASCO performance. The Group's Vessel Operating
Profit for the period reached USD 15.5 million, thus representing a decrease of
9% or USD 1.5 million from the respective result of the previous year. The
largest contribution (72% or USD 11,2 million) was traditionally made by its
Tanker Fleet. In the first quarter of 2006, there was a considerable increase
in the contribution made by LASCO LPG carriers that generated 25% of the total
Net Voyage Result. LASCO Reefer Fleet's Net Voyage Result made up 2% of the
Group's total result, while that of the Dry Cargo Fleet - 1%.
“The Group's positive financial results testify to its ability to make use of
the relatively favorable situation in the shipping market. However, LASCO
further successful development is impossible without the renewal of its most
profitable segment - tanker fleet. The drop in the freight rates, caused by the
growth of the world tonnage and hence higher competition, signals that the
employment prospects for the aged vessels technically incompliant with the EU
marine safety requirements will become more and more unfavorable. Therefore, we
are especially eagerly anticipant of the delivery of the first out of ten
newbuildings ordered at 3.Maj shipyard in Croatia, which is to take place
already this summer”, stressed Imants Vikmanis, Chairman of JSC Latvijas
kuģniecība Management Board.
To ensure LASCO successful operation in the long-term perspective, the
elaboration of JSC Latvijas kuģniecība Strategic Plan to the year 2015 was
commenced in the reporting period. The work group comprises the representatives
of LASCO Management Board and Supervisory Council, as well as shipping industry
experts.
For detailed information:
Marita Ozolina-Tumanovska
Head of PR Department
Phone: +371 7020120, 9287169
E-mail : ozolina@lsc.riga.lv
