Riga, 2013-11-27 06:50 CET (GLOBE NEWSWIRE) -- The interim financial result of Latvian Shipping Company (hereafter – LSC or Company) and its subsidiaries (hereafter – LSC Group or Group) for the Q3 of 2013 resulted in a net profit 1.96 million USD due to improved earnings, a decrease in administrative costs and a slight reduction in the fleet impairment charge. The total result for the nine months of 2013 is a net loss of 24.64 million USD due to a 23.67 million USD fleet non-cash impairment charge and a 5.40 million USD non-cash loss due to the sale of the vessel “Kaltene”. In the same period last year the financial result of LSC Group resulted in a net loss of 35.57 million USD.
During the nine months of 2013 the positive EBITDA trend continued and reached 36.81 million USD which was an improvement on 28.10 million USD over the same period in the previous year.
“During Q3 2013 the LSC Group also maintained a positive trend in respect of cash flow and as of 30 September 2013 the Group had cash and short term deposits of 36.08 million USD, which is 9.94 million USD more than at the beginning of 2013. The cash position of the Group has increased due to improved earnings, sale of vessel “Kaltene” and a reduction in administrative costs. As already reported before it is LSC’s intention to use part of the Group’s accumulated cash and any cash that may result from eventual sale of vessels to cover LSC Group’s financial liabilities which are due in Q3 next year in respect of the vessel “Riga””, explains Simon Blaydes, chairman of the Management Board of LSC.
As mentioned above the substantial reduction in administrative costs continued throughout Q3 2013 with total savings for the nine months of 2013 when compared with the same period in 2012 in the amount of 2.81 million USD or 30% (nine months of 2013: 6.47 million USD versus nine months of 2012: 9.28 million USD).
The total income of the fleet for the nine months of 2013 was 78.187 million USD which is slightly less than for the same period in the previous year (nine months of 2012: 83.11 million USD). LSC Group fleet’s net voyage result for nine months of 2013 was 67.39 million USD which is an improvement when compared to the previous year (nine months of 2012: 64.40 million USD).
At 30 September 2013 the total value of the LSC Group assets was 549.69 million USD. The figure at 31 December 2012 was 605.78 million USD. The decrease is mainly attributable to the depreciation of the fleet and the impairment provisions as explained above. The total value of the LSC Group fleet was 444.36 million USD which considerably exceeds the total value of the outstanding loans used for the fleet financing (290.02 million USD). The total equity value of the Group at 30 September 2013 was 211.07 million USD (31 December 2012: 234.89 million USD).
“The LSC fleet has continued to generate earnings in line with expectations throughout Q3 2013 and the market indicators are that the petroleum product tanker sector will continue to perform well. At the same time it must be acknowledged that the products tanker market is dependent on worldwide economic growth which still remains finely balanced. It is this economic growth that drives demand for refined oil and ultimately the extent of this demand can either have a positive or detrimental impact on the product tanker market”, emphasizes Simon Blaydes, chairman of the Management Board of LSC.
About JSC “Latvijas kuģniecība” (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 18 modern ships, employing more than 700 professional and highly qualified seamen from Latvia. The total carrying capacity of the LK fleet is 883 910 DWT and the average age of the fleet is 5.9 years. All ships have received ISM (International Safety Management) certificates.
JSC Latvian Shipping Company
Latvian Shipping Company http://www.lk.lv/en/
LSC Shipmanagement www.lk.lv/en/shipmanagement