An independent auditor has completed the audit of financial report of year 2021 of AS “Rīgas kuģu būvētava”

AS “Rīgas kuģu būvētava” (Company) closed 2021 with a negative operating result or losses of EUR 237 862, which have decreased more than 40 times compared to 2020.

Factors affecting the loss for the reporting year are (a) revaluation of fixed assets, where the value of fixed assets was reduced by approximately 50% or EUR 6,896,304; (b) revaluation of inventories, which resulted in the write–off of approximately 80% of the value of inventories or EUR 676,805; and (c) the assessment of the recoverability of receivables by writing off bad debts and establishing provisions for doubtful receivables.

As the market contouring is changing in 2021, demand for the use of assets owned by the Company and leased has increased, the Company has therefore focused its activities on the management and rental of its own and leased real estate, and the annual report includes both ship repair and property management revenues from the business. Net turnover from operations in 2021 was EUR 2 095 882, which increased by 17% compared to 2020.

Total assets of the Company at the end of 2021 increased insignificantly to EUR 9 106 879 compared to the beginning of the year. In 2021, the Company’s total liabilities increased by 5%, while equity decreased by 17% and at the end of the reporting period amounted to EUR 1 191 649.

The amount of the Company’s equity as of December 31^st, 2021 is positive in the amount of EUR 1 191 649. The Company’s operating result for 2021 was a net loss of EUR 237 862 (comparing to loss of EUR 9 982 648 in 2020) and as at December 31^st, 2020, short–term liabilities exceed current assets by EUR 1 645 081. The most significant short–term liability positions are debts to suppliers and contractors amounting to EUR 1 173 856.

The Board of the Company proposes to cover the losses of the reporting year from the retained earnings of next years.

The Company informs its shareholders that due to technical reasons on the date of publication of the annual report, the audited Financial Report of year 2021 and auditor’s report is available only in Latvian, but the shortcomings will be corrected and the audited Financial Report of year 2021 and auditor’s report in English will be published latest by May 10^th, 2022.

Find hereby enclosed the audited Financial Report of year 2021 and auditor’s report in Latvian, and Remuneration report of the Board of Directors and Council for 2021 and Corporative Governance Report on 2021 in English. 

The Board of Directors of AS „Rīgas kuģu būvētava”