The unaudited financial result of Latvian Shipping Company and its subsidiaries (LSC Group) for the twelve months of 2015 amounted to a loss of 7.09 million USD. This is primarily due to a loss arising from the reconsolidation of SIA “LASCO Investment” group (LASCO Investment) and subsequent write down of the real estate asset values owned by LASCO Investment with total negative financial effect in the amount of USD 22.74 million.

The LSC Group turnover mainly consisted of income from the fleet as well as a small portion of income generated from third party tanker technical management and real estate rent. The total income of the fleet for 2015 was 91.44 million USD, while the LSC Group fleet’s net voyage result for 2015 was 82.56 million USD. In 2015 the LSC Group achieved a positive result from chartering and other activities achieving a net profit before tax and exceptionals of 18.85 million USD.

The key financial indicators for the last three financial years are as follows (million USD)

2015 was important year for the company as a series of settlement agreements were signed with a number of individuals, including Former Management Board and Supervisory Council members thus terminating unwanted disputes and allowing the Group to concentrate on its core business.

There was no change in the LSC Group’s commercial fleet of sixteen vessels during 2015, however the LSC subsidiary “LSC Shipmanagement” Ltd was managing an additional four third-party tankers, bringing the total to twenty vessels. In the first half of 2016, LSC Shipmanagement” Ltd will add three newly built oil and chemical tankers under technical management. The first of the three ships was received in January. The next addition to the fleet is expected in April and in May. The increase in the technical management of third-party vessels is testament to the competency and professionalism of LSC Group staff and is generating additional income for the Group.

At the end of the reporting period 88% (fourteen vessels) of the LSC Group’s fleet were employed on period business (time-charter). The average employment period for the portion of the fleet on time charter plus bareboat charter as at the end of reporting period was 7.2 months.

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

About JSC “Latvian Shipping Company”

JSC “Latvian Shipping Company” (NASDAQ 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. Besides, it is technically serving five more vessels, thus managing a fleet of 21 vessels. The average age of the LASCO fleet is 8 years. All of the vessels have received ISM (International Safety Management) certificates.

Elīna Dobulane, Communications Consultant

JSC “Latvian Shipping Company”

Telephone: +371-25959447

E-mail: elina.dobulane@vnafta.lv

www.lk.lv