Latvijas kuģniecība                           29.11.2005



JSC Latvijas kuģniecība Nine-month Profit Doubled Compared to the Respective Period Last Year



JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) today announced 

its financial results for the first nine months of 2005. LASCO Group’s profit 

after tax for the nine months ended 30 September 2005 reached USD 20,7 million 

(LVL 12,1 million;  EUR 17,2 million), thus doubling the respective result 

of the previous year. Compared to the nine months of 2004 there was also an 

increase of 21% in the Group’s Net Voyage Result that reached USD 111,2 million 

(LVL 64,8 million; EUR 92,2 million). 



 Today, 29 November 2005, the above-mentioned LASCO financial results were 

reviewed and taken into consideration by JSC Latvijas kuģniecība Supervisory 

Council.



“We have all the grounds to feel contented,” believes Imants Vikmanis, 

Chairman of JSC Latvijas kuģniecība Board of Directors. “The Group’s 

financial results that considerably exceeded the results of the previous 

year, testify no only to the persistent teamwork of the LASCO staff, but also 

to the Company’s ability to purposefully make use of the relatively favourable 

shipping market situation. However, at the same time we realize that the average 

age of LASCO fleet may become a negative factor in the less favourable shipping 

market conditions.  Therefore, it is the implementation of LASCO Tanker Fleet 

Renewal Programme that is of crucial importance for the Group’s further positive 

long-term development and preservation of its competitiveness.”



In the first nine months of 2005 no changes took place in the composition 

of LASCO Group’s fleet that comprises 40 vessels (32 product tankers, 2 LPG 

carriers, 5 reefer vessels and 1 Ro-Ro/general type vessel). During the 

reporting period all types of LASCO fleet were profitable, and the aggregate 

Vessel Operating Profit reached USD 37,3 million (LVL 21,7 million; 

EUR 30,9 million). 

 

The largest contribution of 74% (USD 27,5 million; LVL 16,0 million; 

EUR 22,8 million) to the Group’s total Vessel Operating Profit was made by 

the Company’s Tanker Fleet. Similar to the previous years, with the onset of 

summer there was a drop in the tanker freight rates. However, on the average 

the rates were slightly higher than in the respective period of 2004. 



The LPG Fleet’s contribution to the Group’s total Vessel Operating Profit 

increased considerably and reached 21% of the total result or USD 7,9 million 

(LVL 4,6 million; EUR 6,6 million). Both LPG carriers continue to be 

successfully employed by Scandigas Pool.



LASCO Reefer Fleet generated 4% of the Group’s total Vessel Operating Profit 

or USD 1,4 million (LVL 0,8 million; EUR 1,1 million). 



Distinct reefer freight rate seasonality together with the scheduled repairs 

of the vessels caused a slight negative difference between the Reefer Fleet’s 

result for the first nine months of 2005 and for the respective period of 2004.   



An improvement was shown by LASCO Dry Cargo Fleet whose Vessel Operating 

Profit for the reporting period reached USD 0,5 million (LVL 0,3 million; 

EUR 0,4 million),  thus exceeding the respective result of the previous year 

by USD 1,3 million.



During the first nine months of 2005 the implementation of LASCO Tanker 

Fleet Renewal Programme was continued. 14 newbuildings have been already 

ordered within the frames of the project: 10 tankers at 3.Maj shipyard in 

Croatia and 4 tankers at Hyundai Mipo Dockyard in Korea.



To ensure the delivery of the vessels in accordance with the agreed schedule, 

steel cutting for the first 2 of the ten vessels ordered at 3.Maj shipyard 

was commenced during nine months of 2005. The first vessel is scheduled for 

delivery in July 2006. 



The construction of four vessels ordered at Hyundai Mipo Dockyard is 

progressing according to the schedule, and they are planned for delivery 

at regular intervals during 2007. 

In the first nine months of 2005 LASCO Group’s Total Asset Value increased 

by USD 18,9 million (LVL 11,0 million; EUR 15,7 million) and reached USD 

564,7 million (LVL 329,2 million; EUR 468,4 million). As at the end of the 

period the Group’s Shareholders’ Equity was USD 377,5 million ( LVL 220,1 

million; EUR 313,1 million) or USD 1.89 (LVL 1,10; EUR 1,57) per share, which 

is the highest level in the history of LASCO as a private company.







For detailed information:

Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

E-mail : ozolina@lsc.riga.lv