JSC  Latvian  Shipping  Company  (LSC)  today  announced  its financial

results  for  nine  months ended September 30, 2003. LSC Group's profit

after  tax  for  nine  months  2003 reached $ 17.2 million, which is an

increase  of  $ 23.2 million compared to the respective period in 2002.

As  compared to the six-month 2003 result, the Group's profit decreased

by $ 2.7 million.



 The  largest  contribution to LSC Group's financial results is made by

its  most  profitable  segment  -  product  tankers. LSC Tanker Fleet's

vessel  operating  profit  for  nine  months of 2003 amounted to $ 22.7

million.  LSC  Group's  total  vessel  operating  profit made up $ 24.8

million,  thus  exceeding  last  year's  nine-month  result  by  $ 13.8

million.



 "The Group's total financial result was considerably influenced by two

factors:  LSC  Tanker  Fleet's  positive  result,  explained  mainly by

unexpectedly  high  freight rates at the beginning of the year, as well

as  purposeful  optimisation  of administration costs", believes Imants

Vikmanis, LSC President.



 New ferry line VentLines launching costs are considered to be the main

reason  for  the  negative  result  of LSC Dry Cargo Fleet - its vessel

operating  profit  for  nine months of 2003 was by $ 708 thousand lower

compared to the respective period in 2002.



 The  total profit earned by two LPG carriers amounts to $ 2.5 million.

Also  Reefer  Fleet  made  a  small  profit  of  $  184 thousand due to

increased demand for ice-class reefers during severe winter in 2003.



 "Tanker rates development analysis during the last six months revealed

a  negative  trend  - rates have been steadily dropping since April. At

present  they  are  almost  fifty  percent lower than at the end of the

first  quarter. It should be also considered that as a result of the EU

Regulation  on  single-hull  oil tankers, which reportedly entered into

force  on  21 October 2003,  material investments will be required into

LSC  tanker  fleet  renewal  and  reconstruction  of  separate vessels.

Therefore  the  Group's annual profit projection is now less optimistic

than  it was after the company's six-month financial results," stresses

Imants Vikmanis, LSC President.



 As  of  September  30,  2003 LSC Group's fleet consisted of 35 product

tankers,  2  LPG  carriers, 12 reefer vessels and 1 Ro-Ro/general cargo

vessel.



JSC  Latvian  Shipping Company financial statement for 9 months of 2003

(in PDF) is available here .





Marita  Ozolina  -Tumanovska, Head of PR departament,  Latvian Shipping

Company,    Phone:    +    371    7020120,   Mob.       +371   9287169,

E-mail:ozolina@lsc.riga.lv