| Emitents | Latvijas kuģniecība, AS (48510000VYR04HZGC213) |
| Veids | Finanšu pārskati |
| Valoda | EN |
| Statuss | Publicēts |
| Versija | |
| Datums | 2012-02-29 09:18:02 |
| Periods | |
| Versijas komentārs | |
| Teksts |
Latvian Shipping Company (hereafter – LSC) and its subsidiaries (hereafter – LSC Group or Group) unaudited net loss in 2011 was LVL 24.9 million (USD 49.70 million) which is three times less than in 2010 when LSC had net loss of LVL 78.4 million (USD 142.44 million). Simon Blaydes, Chairman of the Management Board argues
that situation of the LSC should be viewed in a wider context of
global shipping industry: „Given the very difficult financial
environment the global shipping market remains very challenging.
Ship-owners in all market segments are experiencing severe
liquidity problems. LSC has also been exposed to these difficult
conditions but has been cushioned from the worst effects with a
majority of the fleet being employed on time charter thus ensuring
a more predictable income stream.”
In both 2011 and 2010 a considerable amount of the net
losses relates to the impairments, provisions for which are
required to be made according to the International Financial
Reporting Standards. The impairment provisions made in 2011 are as
follows: (1) assets held for sale (3 older handy size vessels), in
the amount of USD12.56 million; (2) total fleet value adjustment,
in the amount of USD15.08 million; (3) value adjustment of
investment in real estate properties in the amount of USD1.29
million.
This result reflects the difficult financial situation
that ship-owners continue to experience in 2011, yet again,
recording historically low market rates. The reasons for this are
varied and complex but the main factors are less demand for oil
products caused by the global economic downturn especially within
the more developed western economies coupled with an increase in
the number of new tankers. Prior to 2008 strong global economic
growth stimulated demand for shipping and this encouraged the
construction of new tankers. The consequence of this increase in
vessel supply and current decrease in demand is lower earnings for
ship-owners.
Simon Blaydes, Chairman of the Management Board is
cautiously optimistic about the future development of Latvian
Shipping Company: „However there are some signs for optimism for
the product tanker market. The level of recent closures of
uneconomic refineries in Western Europe and the USA is likely to
increase demand for oil products which will need to be supplied by
the more modern refineries that have been built, and will continue
to be built, in the middle and far-east. Additionally, economic
growth in emerging economies, for example South America and Africa,
is also expected to increase demand for product
tankers.”
Blaydes indicates that according to the current economic
environment, and with less banking finance available, that fewer
product tankers will be built. This should help to improve the
current in-balance between the number of product tankers and
product movements.
At the end of 2011 the fleet under the commercial
management of LSC Group consisted of 20 tankers. During 2011 the
Group took delivery of two new build tankers, the “Latgale” and the
“Zemgale” ordered in 2007 from “Hyundai Mipo Dockyard Co., Ltd”
shipyard in Korea and sold the 17 year old vessel “Indra” for
scrap. Further, LSC has reclassified three of its oldest vessels as
assets for sale in order to ensure sustainable financing for the
remaining fleet.
In 2011 total net voyage result from shipping was
USD87.99 million (2010 - USD88.31 million) and shows stabilization
in income. Vessel operating profit was USD 15.24 million, a 21%
improvement on the previous year (2010 - USD12.69 million),
however, the operating profit did not cover the fleet financing
expenses (USD20.27 million).
At December 31, 2011 the total value of the LSC Group
assets was USD650.30 million. The previous year the figure was
USD680.47 million. The decrease is mainly attributed to the
impairment provisions as explained above. The total value of the
LSC Group fleet has decreased from USD570.50 million to USD508.05
million and in addition to the impairment provisions also reflects
depreciation. The total equity value of the Group at December 31,
2011 was USD265.64 million (2010 - USD313.18 million).
About JSC “Latvijas kuģniecība”(Latvian Shipping
Company)
In the medium-sized and handy tankers
categories JSC „Latvijas kuģniecība” (NASDAQ OMX
RIGA: LSC1R) is among the leading ship
owners in the world, and in terms of transport volumes of petroleum
products it is also in a leading position among similar
companies in Northern Europe. It owns 20 modern ships,
employing more than 700 professional and highly qualified seamen
from Latvia. The total carrying capacity of the LK fleet is
957 974 DWT and the average age of the fleet is 5.5
years. All ships have received ISM (International Safety
Management) certificates.
Ilze Nagla
Public Relations Manager JSC “Latvijas kuģniecība” Tel.: 29267454, 67715914 E-mail: ilze.nagla@vnafta.lv |
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