JSC  Latvijas  kuģniecība (LASCO) today announced financial results for

the  first  quarter  2004. LASCO Group's profit after tax for the three

months  ended  March  31, 2004 made up $ 587 thousand, while its vessel

operating profit reached $ 2.2 million.

"Although  the  Group's performance in the first quarter 2004 should be

regarded  as  positive, there has been a drop in the profit compared to

2003.  The  Company's  financial  results  were  affected by a slump in

freight  rates  for  the  older  tonnage  - its average daily TCE (Time

Charter  Equivalent)  in  the  first  months  of  2004 was by 40% lower

compared to the respective period in 2003. As reported earlier, product

tankers  have always constituted the Group's most profitable and stable

segment  making the largest contribution to LASCO's financial results",

said Imants Vikmanis, LASCO President.

The  necessity to maintain ageing fleet was the main reason for LASCO's

relatively  high  vessel operating costs resulting both from the vessel

dry-dock  repairs  and  their modernisation commenced in 2003 to comply

with  EU  requirements.  At  present  part  of LASCO's older tonnage is

banned to enter European and USA ports.

Besides,  in  the  course of the Group's Strategic Plan implementation,

five  product  tankers  were  sold  for  scrap during 2003 due to their

technical   condition   being   incompliant   with   EU  marine  safety

requirements.  The reduction of fleet caused a drop in the Tanker Fleet

vessel operating profit.

The  profit  earned  by LASCO's two LPG carriers made up $ 1.3 million.

The  operation of the Company's reefer vessels was profitable as well -

Reefer Fleet vessel operating profit for the first quarter 2004 reached

$ 1.6 million.

The Group's financial results for the first quarter 2004 were presented

to the Company's Supervisory Council on May 19, 2004.



Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120,

Fax: +371 7820239

E-mail : ozolina@lsc.riga