AS Latvijas kuģniecība                                     24.08.2005



LASCO FIRST HALF 2005 PROFIT REACHES USD 13 MILLION



JSC Latvijas kuģniecība (Latvian Shipping Company - LASCO) today 

announced its financial results for the first half of 2005. LASCO 

Group’s profit after tax for the first six months ended June 30, 

2005 reached USD 13.0 million, thus almost three times exceeding 

the respective result of the previous year. Compared to the first 

half of 2004 there was also a double increase in the Company’s 

Vessel Operating Profit that reached USD 24.6 million. Today, 

24 August 2005, the Company’s positive financial results were 

reviewed and taken into consideration by JSC Latvijas kuģniecība 

Supervisory Council.



In the first half of 2005 all types of LASCO fleet operated with 

profit. However, the largest contribution to the Group’s total 

Vessel Operating Profit was made by its Tanker Fleet that generated 

67% of the total result or USD 16.5 million, thus exceeding the 

respective result of 2004 by USD 9.0 million. 



Also LPG Fleet’s Vessel Operating Profit has improved compared 

to the respective period of 2004. In the first half of 2005 it 

made up USD 5.0 million or 21% of the Group’s total Vessel 

Operating Profit. LASCO Reefer Fleet’s Vessel Operating Profit 

made up 11% of the Group’s total result, while that of the Dry 

Cargo Fleet – 1%. 



“Positive financial results once again testify to the Company’s 

competitiveness in the international shipping markets, as well 

as to its ability to work professionally and purposefully in 

complicated and changing circumstances. I feel especially 

contented that we were able to earn profit not only in the 

tanker segment, but also in traditionally less profitable dry 

cargo and reefer sector”, stressed Imants Vikmanis, Chairman 

of JSC Latvijas kuģniecība Board of Directors.



Similar to the previous years, with the onset of summer there 

was a traditional decrease in the demand for oil products leading 

to a drop in the tanker freight rates. Freight rate seasonality 

in the reefer segment is even more distinct. However, compared 

to the previous years a slight growth of the reefer rates continued 

due to the ageing of the world fleet against the low newbuilding 

activity. The growth of freight rates was strong enough to offset 

the adverse impact of the rise in the bunker prices and enabled 

the Company not to lay-up its reefer vessels for the first time 

in the past years.



“It cannot be denied that the Company’s performance has been 

positively impacted by the registration of changes in the 

composition of LASCO Board of Directors and Supervisory Council 

in the Register of Enterprises of the Republic of Latvia done 

on 22 June 2005. Though being of a merely declarative nature, 

it has cleared our customers’ and business partners’ concern 

for the legality of JSC Latvijas kuģniecība managing bodies”, 

noted Uldis Pumpurs, Chairman of JSC Latvijas kuģniecība 

Supervisory Council.



During the reporting period the implementation of LASCO Tanker 

Fleet Renewal Programme 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 of the ten vessels ordered at 3.Maj was commenced on 

22 June 2005. The first vessel is scheduled for delivery 

in early 2006. The construction of the four vessels ordered 

at Hyundai Mipo Dockyard is progressing according to the 

schedule, and they are planned for delivery at regular 

intervals during 2007.



The fact that the renewal of the Group’s fleet is not only 

a vitally important step towards preserving the Company’s 

competitiveness, but also a strong positive signal to its 

customers and business partners has been repeatedly stressed 

by I. Vikmanis.



In the first six months of 2005 no changes took place in 

the composition of LASCO Group’s fleet comprising 40 vessels: 

32 product tankers, 2 LPG carriers, 5 reefer vessels and 

1 Ro-Ro/general type vessel.





For detailed information:

Marita Ozolina-Tumanovska

Head of PR Departament

Phone: +371 7020120, 9287169

E-mail : ozolina@lsc.riga.lv