Atnaujinta: 2024.11.26 06:21 (GMT+2)
LSC "Latvijas kuģniecība" 16.05.2005
LASCO REPORTS 2004 ANNUAL RESULTS
JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) today
announced its unaudited consolidated financial results for the
year ended December 31, 2004. The results evidence the Company’s
ability to benefit from the favourable market situation and earn
profit. According to the unaudited consolidated Financial
Statements the Group’s profit after tax for 2004 is
U.S.$ 71,4 million. The main two sources of the profit for 2004
were the Company’s core business activity and the reversal of
previously recognised fleet impairment loss. It is planned to
utilise the profit earned for the investments in LASCO tanker
fleet renewal as well as to cover the accumulated loss of the
previous years.
"2004 was marked by a favourable market situation in the shipping
industry, and I am glad that we were able to benefit therefrom.
Undoubtedly, it was also the Group’s stable reputation and purposeful
activity aimed at the implementation of the Group’s long-term
strategic plan that underlay its successful performance," said
Imants Vikmanis, LASCO President.
A considerable part of the Group’s income in 2004 was formed by
the reversal of the previously recognised impairment loss of the
fleet, recognised in the Consolidated Income Statement for 2004
in the amount of U.S.$ 42,6 million. The significant difference
between the vessels’ market value and their book value, revealed
by the independent professional valuators’ estimates, can be
explained by a positive development of freight rates in the
shipping market in 2004.
Similar to the previous years, the Group’s 32 tankers remained
leaders of JSC Latvijas kuģniecība fleet. They traditionally
traded all over the world with a particularly strong presence
in Northern Europe, Mediterranean, North America and West Africa.
LASCO Tanker Fleets’ Vessel Operating Profit for 2004 reached
U.S.$ 32,6 million, and it’s Net Voyage Result formed 81% of the
Group’s total Net Voyage Result.
Imants Vikmanis, the Chairman of JSC Latvijas kuģniecība Board
of Directors, believes that it was only due to a favourable market
situation and the related stable demand for product tankers that
enabled LASCO to successfully employ its older tonnage. As it
has been reported, the Group’s Strategic Plan 2003-2010 provides
for a special attention to be paid to the renewal of the Group’s
Tanker Fleet, and it will be expanded with 14 modern ice-classed
vessels in the nearest years.
Due to non-compliance with European Union marine safety requirements
m/t Gaida was sold for scrap and m/t Viktorio Kodovilja was sold.
At the same time three ice-class product tankers built in 2003 –
m/t Kolka, m/t Kuldiga and m/t Kaltene – were purchased by the Group.
About 10% of the Group’s total Net Voyage Result was generated by
LASCO Reefer and Dry Cargo Fleet, comprising 5 super ice-class reefers
and 1 Ro-Ro/general cargo vessel. In 2004 the reefer segment showed a
moderate growth of the freight rates, which is reflected by the said
fleet’s financial results – LASCO Reefer Fleet’s Vessel Operating
Profit for 2004 reached U.S.$ 2 million. During the year the Company’s
Reefer Fleet was traditionally employed in carrying bananas, other
fruits and frozen food from the Southern Hemisphere to Russia.
2004 was a successful year also for the Group’s two modern LPG carriers,
whose Vessel Operating Profit for 2004 makes up U.S.$ 6,6 million. Both
vessels still remained members of the Scandigas Pool, one of the largest
in the world.
Favourable changes in the maritime taxation regulations in Latvia
enabled LASCO to consider reflagging the Group’s fleet to Latvian flag.
Since 5 December 2003, when the national flag was raised on the first
LASCO’s vessel, already seven vessels have been transferred to the
Latvian Ship Register.
"2004 was notable for a strong demand for oil products and high freight
rates, peaking in the last quarter and in certain markets reaching record
levels not seen for years. However, we should now concentrate on the
market conditions less favourable than prevailed in 2004, since the
principles of economic cycles apply also to the shipping industry.
At present LASCO is engaged in the consistent accomplishment of the
strategically important tasks aimed to preserve the company’s
competitiveness in the international market both in the nearest two-three
years, and in a long-term perspective," stressed Imants Vikmanis,
the Chairman of JSC Latvijas kuģniecība Board of Directors.
Marita Ozolina-Tumanovska
Head of PR Departament
Phone: +371 7020120, 9287169
Fax: +371 7820239
E-mail : ozolina@lsc.riga.lv