The Management Board of JSC Latvijas kuģniecība (Latvian Shipping Company – LASCO) has made a decision to strengthen the company’s investment portfolio in order to diversify the risks and strengthen the asset base, possibly by creating its own investment fund in segments not directly connected with shipping business. This decision will supplement the company’s strategy, which will also further implement renewal of tanker fleet in the medium-sized tanker segment.

 “The results of LASCO holding company in the recent years presenting a stable annual profit in several tens of millions of lats attest to correctness of the company’s strategy of investing in the middle class tanker fleet. Today, LASCO is one of the world’s leading companies in the segment of the so-called handy or medium-sized tankers. However, experts in this field now admit that the amount of transportation by ship is likely to decrease along with the global recession. In such conditions, LASCO is going to continue tanker fleet renewal, yet not as actively as in the last two years. In order to strengthen the company’s asset base, it has been decided to consider a possibility of making profitable, safe long-term investments. We are considering a possibility of creating our own investment fund, by investing resources in assets connected not only with the shipping business” the LASCO Vice-President Raivis Veckāgans points out.

It is planned that LASCO will form basically a long-term investment portfolio, which will be supplemented by separate short-term assets. LASCO’s primary focus in the investment field will be on the commercial real estate assets in Latvia. However, it is not excluded that the company will invest its available funds also into assets of other categories, for example, capital shares, shares, loan notes or stock shares.

 “The investment aim of LASCO is to place the company’s available funds and to make profit from return of assets resulting from both regular revenue and value increase. Maximum flexibility will be maintained in the LASCO investment strategy and it will be aimed at supporting the company’s basic business, namely, transportation by ship,” R.Veckāgans emphasizes.

The fleet under commercial management of LASCO includes 37 vessels: 34 tankers, two gas carriers and one dry cargo vessel. LASCO is ranked among world’s ten major ship-owners in the medium-sized tanker segment and also holds leader positions in the North Europe market.