JSC  Latvian  Shipping  Company  (LASCO)  today  announced  its audited

financial  results  for  the  year  ended  December  31,  2003.  Due to

favourable  shipping  market conditions combined with strong demand for

the  Company's ice-classed vessels during complicated ice navigation in

winter, LASCO Group's profit for 2003 made up LVL 8.8 million.

"2003  was  marked  by  a  number of significant events in the Company.

Privatisation  process  was completed by selling all state owned shares

to private investors, and the restructuring process, commenced in 2002,

was  continued.  During  the  year  LASCO  launched  its  Fleet Renewal

Programme provided for in the Group's Strategic Plan 2003 - 2010", said

Imants Vikmanis, LASCO President.

The  implementation  of  the  Group's Strategic Plan was started in the

second  half  of  the  year,  with  a particular emphasis placed on the

renewal  of  the  Company's  tanker  fleet. LASCO sold the unprofitable

Kurska  type  reefers  and  disposed  of a part of its older tankers to

comply  with  EU  regulations  on  phasing-out single-hull tankers. The

released  funds  were  used for investments in the Group's tanker fleet

renewal.

Favourable changes in the Latvian tax policy, including the adoption of

tonnage tax regime, encouraged LASCO to consider reflagging the Group's

fleet  for the vessels to fly Latvian flag. The first vessel - m/v Zoja

II - was reflagged in late 2003.

LASCO  Group's product tankers still remain the most profitable segment

of  the Company's fleet. They generated almost 80% of the LASCO fleet's

total  Voyage  Income.  At  the  beginning of 2003 LASCO Product Tanker

Fleet  consisted of 36 vessels. The employment of two vessels, released

from arrest in France in 2002, was renewed in July 2003.

Due  to  an  especially  harsh  winter  in  Europe  a favourable market

situation  with  high  freight rates and stable demand prevailed in the

ice-classed tanker segment during the first quarter of 2003. However, a

plunge  of  rates, caused by the reduced oil product demand and planned

maintenance works at many refineries, followed in the second quarter.

A  rise  in  the  freight  rates  (especially those in the dark product

segment)  was  registered  at the end of the year, and was explained by

the  oncoming  winter  season, creation of oil stocks, as well as fresh

memories  of  the  severe winter of 2002. The recovery of the rates was

also  caused  by Turkey's introduced restrictions for vessels over 200m

in  length to transit the Bosphorus. Unfortunately, due to the above EC

regulations,  LASCO  Group  was  not able to make use of the favourable

conditions prevailing in the market at the end of 2003.

To ensure the implementation of the Group's Fleet Renewal Programme, in

December  2003 an Agreement was reached with 3. Maj shipyard in Croatia

on  the  building  of eight 51.800 DWT ice-classed product tankers. The

first vessel is scheduled for delivery in summer 2006.

Thirteen  LASCO  Group's reefer vessels together with the Company's Dry

Cargo  Fleet  generated  about  15%  of  the LASCO fleet's total Voyage

Income  for  2003.  Compared to 2002, the segment showed an increase in

the  freight  rates, especially during winter months due to complicated

ice  navigation  in the Bay of Finland on the traditional routes to St.

Petersburg.  The  rise  in  the  rates  together  with  the sale of the

unprofitable  Kurska  type  reefers enabled LASCO Reefer Fleet to close

the year with profit.

The  Voyage  Income  earned by two LASCO 's modern LPG carriers in 2003

made about 5% of the LASCO fleet's total Voyage Income. The traditional

seasonal  increase  in the LPG rates at the beginning of 2003 was lower

than  in  the  previous years, and it was only in the last quarter that

LPG  rates developed in a positive way. The relatively low level of the

LPG  rates  could still be explained by the insufficient growth rate of

the trade volumes.

Although a positive upward trend was registered in the freight rates at

the  turn  of  2003,  there  are no grounds to believe in the long-term

perspective   thereof,  considering  high  order  books  at  the  world

shipyards   and  the  tightening  regulatory  regime  for  oil  product

transportation.  However,  the  implementation  of  the  Fleet  Renewal

Programme  will  enable the Group to develop and to preserve its market

share,  since  it  is  economically  sounder  to maintain a smaller and

younger  tonnage,  than  a  larger but an older fleet. Furthermore, the

reorganization of the Company commenced in 2002 will enable the Company

to  reduce  its  overheads,  thus  making a positive impact on LASCO 's

future performance.

JSC  Latvian  Shipping  Company  financial  results  for the year ended

December  31,  2003  will  be  presented  to  the Company's Supervisory

Council  on April 7, 2004 and will be further submitted for approval to

the General Shareholders Meeting in May 2004.

Audited Annual report of 2003 available here.

Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

Fax: +371 7820239

E-mail : ozolina@lsc.riga