Pēd. atjaunots: 26.08.2024 17:06 (GMT+3)
Comments on LSC Group first six months results of 2002
(All amounts are expressed in US $ '000s)
After the first six months of 2002 the vessel operating profit for the
LSC Group amounted to US $ 10.750'. That was US $ 13.605' lower than
corresponding period of last year.
The first half of 2002 was largely influenced by the slowdown of the
world economy and stagnation in several regions, as well as by certain
political factors (like terror attacks in the USA). The problems in the
financial markets strongly affected oil product consumption leading to
lower volumes of cargo to carry. At the beginning of 2001 the product
tanker rates were at their highest during the past 20 years.
The net profit of LSC Group was US $ 4.180'. That was US $ 16.668'
lower than last year. Beside the drop in the tanker rates the result of
the Group was affected by unrealized exchange losses due to the lower
US Dollar rate against Latvian lat.
As of 30 June 2002 LSC Group fleet consisted of 57 vessels (including 5
vessels on Bare-Boat Charter with purchase option), thus being one
vessel less compared to the beginning of the year. The ro-ro type
vessel "Komponists Caikovskis" was sold under the Bare-Boat Charter
Agreement.
Strategic Development of LSC Group
LSC Management Board has approved the main guidelines of the Group's
activity for the second half of 2002.
They provide for further renewal of the old tanker fleet tonnage, as
well as for assessment of the prospects for further "Pablo Neruda"
class operation depending on market situation. The decision has been
taken to scrap one of the oldest tankers "Ž. Diklo" due to economically
unjustified repair costs required for further operation of the vessel.
Low profitability and poor prospects of the reefer segment are the main
reasons to believe that the reefer fleet will cause further losses to
the Group. It is planned to sell seven reefers to reduce the losses of
the company.
The LPGs "Vidzeme" and "Kurzeme" will continue stay in the Scandigas
Pool.