Rigas kugu buvetava
Non-audited annual Report of the year 2014

DGAP-News: Rigas kugu buvetava

2015-03-02 / 08:00

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

JSC 'Rigas kugu buvetava' has finished the financial year with gross profit of
65 244 EUR in turn, the net losses in the year 2014 were 1 087 879 EUR 

In the 2014 JSC 'Rigas kugu buvetava' the net turnover reached 17 896 269 EUR,
of which, the shipbuilding - 7 849 702 EUR, the ship repair - 9 738 965 EUR,
(compared with the year 2013 net turnover totalled 53 730 879 EUR, of which,
the shipbuilding - 37 645 042 EUR, the ship repair - 15 214 037 EUR). 

The company has finished the financial year with gross profit of 65 244 EUR 
(in the year of 2013 the gross losses were 1 127 211 EUR), in turn, the net
losses in the year 2014 were 1 087 879 EUR, (accordingly, in the year 2013 the
losses were 1 926 775 EUR). 

In the 2014 JSC 'Rigas kugu buvetava' executed in total 51 ship repairs
(compared to the year of 2013 - 60 ships), there were built and launched 4 ship
hulls and last of five SWATH type patrol ships for the needs of the Ministry of
Defence of the Republic of Latvia - ship 'REZEKNE', as also there was executed
the modernisation of the naval vessel of Finland in order to enlarge the hull
of the ship. In comparison to the year of 2013 there were built 4 hulls of
ships and were built and delivered to the customers 4 complete ships. 

The suppliers of goods and services for JSC 'Rigas kugu buvetava', as also
suppliers of raw materials in the year 2014 did not change essentially and the
states of their origin were: Western Europe, Estonia, Lithuania and also
Latvia. Traditionally in the ship repair area the main customers were the
Scandinavia states, ship owners from Western Europe, and Latvia, in turn,
customers of ship hulls mainly were from the Scandinavian states, and SWATH
type patrol ship - from Latvia. 

In the reported period the works are continued and was concluded an agreement
for the needs of industrial orders of ship repair and service. These orders
allow to use the work force more rationally and to acquire additional incomes. 

In the year 2014 JSC 'Rigas kugu buvetava', executed the investments in the
fixed assets and reconstruction in total sum of 3 mln.950 thousands EUR
(compared to the year of 2013 the company invested 1 mln.708 thousands EUR).
JSC 'Rigas kugu buvetava' also continues to execute to production of the
capital repairs of buildings, floating docks, portal cranes, tugs and another
fixed assets. 

In April of the year 2014 in JSC 'Rigas kugu buvetava' there was completed the
realisation of Cohesion Fund's co-financing project, which started in the year
of 2013 - 'The Reconstruction of Heating System of JSC 'Rigas kugu buvetava''.
In the project frames there were reconstructed and commissioned the heat traces
in the length of 2440 meters, as also the building /reconstruction of 28
automatized heating units were executed. The project costs were in total 1 058
351,85 EUR, and from that the co-financing from the European Union were 423
340,74 EUR. Similarly, in June of the year 2014 there was concluded another
public co-financed project - 'Energy efficiency measures realisation in
production workshops', which is financially supported by the Climate changes
financial instrument. 

In the frames of the project for more energy-efficient production process there
were provided and commissioned 85 welding vehicles, 9 optional equipment units
(transformers of frequencies) for electrical motors, 4 reactive power units for
energy indemnification, as also an illumination reconstruction is executed in
two production workshops. The project total costs without VAT formed 1 415
395,83 EUR, from that sum of 479 807,72 EUR are co-financing from the Climate
changes financial instrument. As the result of realization of this project
there will be improved the quality of new building of ships and there will be
achieved the economy of energy resources simultaneously. 

Continuing the activity in the energy efficiency increase question with the
purpose to provide an economy of energy resources, JSC 'Rigas kugu buvetava',
cooperating with another the merchants of the incorporated economic group,
executes replacement of Utility Air Compressors, what will allow to provide
consumers with the compressed air of high quality, will diminish the losses of
the compressed air losses in  transfer and will diminish the consumption of
electric power in the compressed air production process. 

JSC 'Rigas kugu buvetava' operates and executes the production procedures in
accordance with the international quality control standards - EN ISO 9001:
2008. The quality accordance certificate was received already in the year 2001
and the quality providing system is constantly improved. 

Estimating the current market situation and enterprise possibilities, the
management will continue to work in order to increase the volumes of the ship
repair and new building. In order to provide the above mentioned, the company
plans to buy the additional equipment for washing and cleaning of ships, what
will allow to increase the handling rate of ships in docks. For this actions
there are planned the investments in the sum of 75000.00 EUR. Now the equipment
of a various kind is delivered already, including portal sheet plasma cutting
machine ESA, sheet gas cutting machine SILHOUETTE, milling machine FSS 350r-03,
milling machine FU450RAp 65.00.000, bridge crane 2ck002971 and another
equipment. 

In correlation on review reported year losses there is important to note that
the company plans to cover them from undistributed profit of the last year,
however at the same time, giving a special role to reduction of contaminations
of the environment, investing in modernization of enterprise production
equipment, as also in modernisation of processes, promoting the competitive
ability of the company in its market sector and, certainly, in profit rate
improvement, as also the business activity will be continued in the next year. 


         Marina Pudova
         Chief Accountant
         t. +371 67080868
         marina@riga-shipyard.com
News Source: NASDAQ OMX



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

2015-03-02 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:     Rigas kugu buvetava  
 
 
             Latvia               
ISIN:        LV0000100378         
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
328439 2015-03-02