Latvian Shipping Company in Red

Latvian Shipping Company (LSC) and its subsidiaries have recorded a loss of USD 1.41 million for the first nine months of the year.

LSC said that this was primarily due to a loss arising from the reconsolidation of SIA “LASCO Investment” and its subsidiaries of USD 13.62 million.

However, this year’s net loss has been substantially cut when compared to the corresponding last year’s figures when LSC reported a USD 14.1 million loss.

On the other hand, the company’s revenues held up well at USD 68.93 million, with a net voyage result of USD 61.27 million.

“Strong revenues, coupled with favourable foreign exchange movements, resulted in a net profit before exceptional of USD 13.68 million,” the company said.

There was no change in the LSC Group’s commercial fleet of sixteen vessels during the reporting period, but the LSC subsidiary LSC Shipmanagement Ltd is managing an additional four third-party tankers, bringing the total to twenty vessels. This number is expected to increase further during the coming months, the company said.

The fleet operating profit for the nine months of 2015 reached USD 39.39 million.

At the end of the reporting period 88% (fourteen vessels) of the LSC fleet were employed on period business (time-charter). The average employment period for the portion of the fleet on time charter plus bareboat charter as at the end of reporting period was 8 months; excluding the bareboat charters (twelve vessels) on 7.7 months.

“LSC management intends to propose a material increase in the company’s share capital in order to cover shipping debt obligations becoming due in 2016/2017. Supervisory council and shareholder meeting clearance would be required. The potential timing presently envisaged would be during the first half of calendar 2016 once the audited annual accounts are available,“said Robert Kirkup, Chairman of the Management Board of LSC.