The interim financial result of Latvian Shipping Company (hereafter – LSC or Company) and its subsidiaries (hereafter – LSC Group or Group) for the six months of 2013 resulted in a positive EBITDA of 24.43 million USD which was an improvement of 34% or 6.19 million USD over the same period in the previous year. Furthermore the net operating profit of the LSC Group after depreciation, tax, and administrative costs resulted in a profit of 2.82 million USD versus a net operating loss of 4.46 million USD over the same period in 2012.

“LSC management continues to be cautiously optimistic that the petroleum product tanker market will continue to perform well in the immediate future with both spot and time charter earnings improving throughout the first six months of 2013. At the same time as a word of caution it is clear that the worldwide economic environment is still finely balanced especially within the European Union and increased demand for petroleum products is dependent on worldwide and regional economic growth”, points out Simon Blaydes, chairman of the LSC Management Board.

The net loss of 26.60 million USD was due to a 24.02 million USD fleet non-cash impairment charge and 5.40 million USD non-cash loss due to the sale of the vessel “Kaltene”. In the same period last year the financial result of LSC Group resulted in a net loss of 29.20 million USD.

During Q2/2013 the LSC Group continued to further improve its cash position. As of 30 June 2013 the Group had cash and short term deposits of 35.36 million USD, which is 9.23 million USD more than at the beginning of 2013. The cash position of the Group has increased due to improved earnings, sale of vessel “Kaltene” and a reduction in administrative costs.

As mentioned above the reduction in administrative costs continued throughout Q2/2013 with total savings for the six months of 2013 when compared with the same period in 2012 in the amount of 1.78 million USD (six months of 2013: 4.52 million USD versus six months of 2012: 6.29 million USD).

The total income of the fleet for the six months of 2013 was 51.97 million USD which is slightly less than for the same period in the previous year (six months of 2012: 55.84 million USD). LSC Group fleet’s net voyage result for six months of 2013 was 44.64 million USD which is an improvement when compared to the previous year (six months of 2012: 42.15 million USD). Vessel operating profit after depreciation and dry-dock amortisation for the six months of 2013 was 14.12 million USD, a significant improvement on the previous period (six months of 2012: 10.51 million USD).  

At 30 June 2013 the total value of the LSC Group assets was 550.61 million USD. The figure at 31 December 2012 was 605.78 million USD. The total equity value of the Group at 30 June 2013 was 208.38 million USD (31 December 2012: 234.89 million USD).

During the six months of 2013 the price of LSC shares quoted on the NASDAQ OMX Riga experienced growth of 17.06%. The OMX Baltic Benchmark GI index in the six months of 2013 increased by 12.63%.

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 19 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 6.3 years. All ships have received ISM (International Safety Management) certificates.