JSC Latvijas kugnieciba (LSC) continues to work to improve work efficiency, however, performance of the company is closely related to developments on international shipping markets, admitted chairman of LSC board Paul Thomas in an interview to the business information portal “Baltic Business Service” of the agency BNS. P. Thomas also emphasised that a stable basis has been created for successful development of the company in the future. Speaking about company’s performance results, LSC indicates that this year will be better than previous.

LASCO fleet is made of 20 modern double hull tankers with average age under 5 years. “Now about 150 single hull tankers are operating in the tanker segment. Soon these vessels will become unattractive to customers, and this is an advantage that LSC will be able to use, when the market will return to growth,” indicated P. Thomas. Competitiveness of LSC fleet is also increased by the fact that part of vessels is ice class, so they can be used in winters for shipping in the Baltic Sea as well as eastern coast of Canada.

Speaking about the possibility to work in other transportation segments, P. Thomas explains: “We are always considering possibilities, however, now LSC is focusing on the tanker segment.” The company also indicates that in current market situation the fleet is optimal to make LSC a good cooperation partner for transportation of oil products. P. Thomas underlines that LSC has never stopped in fleet renewal and will continue evaluation of economic performance of each vessel.

Characterizing the situation on international markets, P. Thomas admits that currently it is pretty difficult: “In a short term ship owners are very concerned, because freight rates are pretty much related to the overall economic situation. Due to the euro area and other problematic factors the time when the situation will start to improve may be detained. However the biggest concerns are caused by market segments where LSC is not involved. Now our task is to keep expenditure base low and operate vessels as efficiently as possible,” believes P. Thomas.

Currently LSC does not plan to attract additional financing in a form of new share emission.

As reported previously, LSC have improved their key operating results for the first half-year 2011. Over the reporting period net losses amounted to 8.75 million USD; however they were three times less than for the same reporting period in 2010 (25.24 million USD). The gross profit for the period compared with the same period last year improved by 309% reaching 7.02 million USD and was able to fully cover administrative costs. An important factor which facilitated improvements in the results was reduction of administrative costs by 34% compared with Q1-Q2/2010.

Additional information:
Elīna Dobulāne
Press secretary
JSC “Latvijas kugnieciba”
Phone +371 25959447
E-mail: elina.dobulane@lscgroup.lv