Latvijas kugnieciba
About the Unaudited Financial Statements of JSC „Latvian Shipping Company” for the nine month period

DGAP-News: Latvijas kugnieciba

21.11.2014 / 15:01

---------------------------------------------------------------------

The interim financial result for Latvian Shipping Company and its subsidiaries
(LSC Group) for the nine months of 2014 resulted in a net loss of 14.17 million
USD, which is 10.47 million USD less compared to the respective period in 2013. 

The accumulated result for nine months of 2014 was positively affected by
income from a partial settlement in respect of the Antonio Gramsi Corporation
court case in the High Court in London in the amount of 20.05 million USD, sale
of real estate property located on Jēkaba street, Riga, and revaluation of the
investment in the medical clinic SIA 'Via Una'. However, vessel impairments in
the amount of 32.25 million USD, losses from the sale of the vessel 'Riga' in
the amount of 0.34 million USD as well as a re-evaluation of the investment in
AS 'Latvijas Naftas tranzīts' in the amount of 8.34 million USD has negatively
impacted on the Group results. The Group suffered a loss of 24.64 million USD
in the same period last year. 

As of the 30th September 2014, the fleet consists of sixteen modern tankers
with the average age of 7 years. The total income from the fleet for the nine
months of 2014 was 69.36 million USD, however fleet's net voyage was 57.99
million USD. The vessel operating profit for the nine months of 2014 after
depreciation and dry-dock amortisation was 20.66 million USD, a result
comparable to that achieved in the previous period (9M/2013: 21.38 million
USD). 

At the end of the reporting period 88% (fourteen vessels) of the LSC fleet were
employed on period business. The average employment period for the portion of
the  fleet on time charter plus bareboat charter was approximately ten months,
while excluding the bareboat charters (twelve vessels) - eight months. 

At the end of the 3rd quarter the LSC Group cash position had improved and the
Group had cash and short term deposits with maturity up to twelve months in the
amount of 40.29 million USD. As of 30th September 2014 the total value of LSC
Group assets was 470.31 million USD, however the total equity value of the
Group was 201.88 million USD. 

LSC management points out that the first nine months of 2014 has been
disappointing for the products tanker market. However, as previously stated,
having the vast majority of the LSC fleet on time charter has enabled the LSC
Group to maintain a steady income stream. 

The IEA (International Energy Agency) which advises industrialized nations on
oil policies continues to trim its projection for growth in global demand for
oil for the balance of 2014 and beyond citing weaker than expected demand. The
recent sharp drop in the price of crude oil is also indicative of this decrease
in global demand. In the medium to long term this could have a negative impact
on both earnings and fleet values. 

Meantime, in spite of this negative outlook, Q4 has proved to be much more
encouraging for the products tanker market than was expected with ship owners
experiencing better than expected earnings. It is to be hoped that this trend
continues for the balance of 2014 and beyond. 

About JSC 'Latvian Shipping Company'

JSC 'Latvian Shipping Company' (NASDAQ OMX RIGA: LSC1R) is among the biggest
vessel owners in the segment of medium and handy size tankers and takes leading
positions in terms of the transported amount of petroleum products among
similar companies in Northern Europe. The company owns 16 modern vessels
employing more than 700 professional and high-skilled seamen from Latvia. The
average age of the LK fleet is 7 years. All of the vessels have received ISM
(International Safety Management) certificates. 

Additional information:

Elīna Dobulāne, Communication Consultant

JSC 'Latvian Shipping Company'

Phone: +371 25959447

E-mail: elina.dobulane@vnafta.lv

www.lk.lv
News Source: NASDAQ OMX



---------------------------------------------------------------------

21.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English              
Company:     Latvijas kugnieciba  
 
 
             Latvia               
ISIN:        LV0000101103         
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
298563 21.11.2014