Latvian Shipping Company (“LSC” or “Company”) and its subsidiaries (“LSC Group” or “Group”) financial result for the first six months of 2017 was a profit of USD 9.39 million (EUR 8.60 million), the equity value in euro terms slightly decreased and was EUR 137.66 million or 0.69 EUR per share due to a weakening USD/EUR exchange rate.
The financial result for the first six months of 2017 was mainly attributable to reverse impairments recognised in respect to the value of the LSC Group’s fleet in the amount of USD 9.76 million (EUR 8.55 million) and profit from the sale of real estate property owned by the LSC Group in the amount of USD 2.00 million (EUR 1.75 million). The fair market value of the fleet decreased by USD 8.25 million (EUR 7.22 million) in the reporting period.
The total revenue of the commercial fleet for the first six months of 2017 was USD 47.15 million (EUR 43.69 million). The revenue reflects lower charter rates, but was boosted by a larger proportion of the vessels trading on the spot market where voyage costs are included in the revenue. The total net book value of the LSC Group’s fleet at the 30th June 2017 was 258.25 million USD (EUR 226.27 million).
Key financial indicators for LSC Group H1 2015-2017 (USD million):
|
6M 2015 |
6M 2016 |
6M 2017 |
|
| Sales | 45.81 | 50.08 | 47.15 |
| EBITDA | 23.80 | 27.94 | 20.64 |
| Profit (loss)/ before exceptionals | 10.25 | (0.90) | (2.20) |
| Exceptionals (income from financial assets) | 0.65 | 0.01 | 2.00 |
| Exceptionals (fleet impairment/reversal of fleet revaluation loss) | (2.05) | (5.60) | 9.80 |
| Net (loss)/profit | 8.85 | (6.66) | 9.39 |
The Group’s commercial fleet remains unchanged at sixteen vessels, with a Group subsidiary, LSC Shipmanagement Ltd, appointed to technically manage not only the LSC Group’s owned fleet but also nine third party tankers thus bringing the number of vessels under technical management to twenty-five.
About JSC “Latvian Shipping Company”
JSC “Latvian Shipping Company” (Nasdaq Riga: LSC1R) is vessel owner in the segment of medium and handy size tankers. The company owns 16 modern vessels employing more than 1300 professional and high-skilled seamen from Latvia. Besides, LSC subsidiary “LSC Ship management” Ltd is technically serving 9 more vessels, thus managing a fleet of 25 vessels. The average age of the LSC fleet is 9 years. All of the vessels have received ISM (International Safety Management) certificates.
Artis Ozolins, Communications Consultant
JSC “Latvian Shipping Company”
Telephone: +371-26179051
E-mail: AOzolins@Golin.com
www.lk.lv
