The unaudited financial result of Latvian Shipping Company and its subsidiaries (LSC Group) for the twelve months of 2014 amounted to a loss of 30.98 million USD predominantly as a consequence of vessel impairments in the amount of 55.25 million USD. It is important to emphasize that throughout 2014 the LSC Group was able to achieve a positive result from its chartering and other activities achieving a net profit before tax and exceptionals of 12.68 million USD which is 3.68 million USD more than in the previous reporting period.

The accumulated result for the twelve 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 and disposal of the investment in the medical clinic SIA “Via Una”. The other negative factors were 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.

During 2014 the LSC Group continued to improve its cash position significantly and as at 31st December 2014 the Group had cash and deposits with maturity up to twelve months in the amount of 45.58 million USD, which is 7.04 million USD more than at the beginning of 2014. This was achieved due to positive cash flow from shipping activities as well as from the sale of non-shipping assets.

The managements commercial strategy throughout 2014 was to employ a large percentage of the fleet in time charter contracts to ensure a steady and transparent revenue stream. The average employment period for the portion of the  fleet on time charter, plus bareboat charter, at the end of the reporting period was approximately eight  months, excluding the bareboat charters (fourteen vessels) – almost seven months.

Additional information is available in the attached unaudited shortened consolidated financial statement

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 500 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.