JSC Latvijas kuģniecība                             30.05.2005



LASCO profits to increase 53 times for the first quarter 2005



JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) today 

announced its financial results for the first quarter 2005. LASCO 

Group’s profit after tax for the first three months ended March 31, 

2005 reached U.S.$ 12,4 million, thus exceeding the respective 

result of 2004 by U.S.$ 12,2 million. The Group’s Vessel Operating 

Profit made up U.S.$ 17,0 million, which is an increase of 

U.S.$ 14,2 compared to the first quarter 2004.



"I am satisfied with the result achieved this year. Favourable 

situation in the tanker market was a good ally to us. However, 

LASCO wouldn’t be able to reach such a positive result without 

its highly qualified seamen and experienced shore-based personnel," 

admitted Imants Vikmanis, Chairman of JSC Latvijas kuģniecība 

Board of Directors.



The Chairman of JSC Latvijas kuģniecība Board of Directors also 

stressed that "The efficiency of LASCO’s business activity is 

also evidenced by the fact that the Company was able to earn 

higher profit despite lower freight rates. Though remaining at 

a historically high level, in the first quarter of 2005 the 

rates were on the average by 25% lower than in the respective 

period of 2004 due to a comparatively mild winter and a large 

number of tanker newbuilds entering the market. Nevertheless, 

the Group’s profit for the first three months of 2005 exceeded 

53 times the respective result of 2004".



In the first quarter 2005 all types of LASCO’s fleet were 

profitable.The largest contribution to the Group’s total result 

was traditionally made by its Tanker Fleet, whose Vessel 

Operating Profit made up U.S.$ 12,5 million or 73% of the 

Group’s total Vessel Operating Profit,thus exceeding the 

respective result of the previous year by U.S.$ 10,2 million. 



In the period a considerable improvement was shown by the 

Company’s LPG Fleet – its Vessel Operating Profit more than 

doubled compared to the first quarter 2004 and reached U.S.$ 3,0 

million. LASCO’s LPG carriers earned 18% of the Group’s total 

Vessel Operating Profit.



LASCO Reefer Fleet’s Vessel Operating Profit for the first three 

months of 2005 made up 8% of the Group’s total result and reached 

U.S.$ 1,4 million, while that of the Dry Cargo Fleet amounted to 

U.S.$ 0,1 million and constituted 1% of LASCO total Vessel 

Operating Profit.



During the first quarter 2005 JSC Latvijas kuģniecība continued 

the implementation of its Tanker Fleet Renewal Programme, within 

the frames of which 10 tanker newbuilds have been ordered to 

3.Maj shipyard in Croatia and 4 newbuilds to Hyundai Mipo Dockyard 

in Korea.



For detailed information:

Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

E-mail : ozolina@lsc.riga.lv