Tankship Owner Turns First Profit Since 2008

Press Release
Monday, June 03, 2013

Latvian Shipping Company (LSC) owners of 19 medium-size tankships reports a profit in Q1 2013.

LSC and its affiliates made a profit of US$ 77,000 despite an impairment charge of US$ 1.7-million against the decrease of the fleet value. Though in absolute terms the profit is merely symbolic, it is nevertheless a sign of major progress; it is the first time since 2008 when the LSC Group reports a positive financial result. Just to compare – the LSC Group closed Q1 of 2012 with a loss of US$ 17.77-million.

Simon Blaydes, Chairman of LSC Management Board, explains: "Latvian Shipping Company is prudently optimistic about the prospects of the petroleum product tanker market, because charter rates have been increasing progressively. The closing down of oil refineries in OECD countries, resulting in increasing demand for longer voyages, as well as the emergence of new product export markets in the USA can also be mentioned as positive trends. At the same time the global economic environment continues to be in a fragile equilibrium. Growing demand in product haul, without any rapid increase in orders for new ships, will remain the key driver to future success for Latvian Shipping Company.”

LSC fleet net voyage result in the first quarter of 2013 was USD 22.22 million, which is a small increase over the first quarter of 2012 (USD 21.58 million). Net voyage result is the difference between voyage income and voyage cost, and it represents total income irrespective whether the fleet is engaged on voyage or time charters.

Also further cuts to administrative expenses by 36% to USD 2.06 million in Q1 of 2013, down from USD 3.24 million in Q1 of 2012, have had a positive effect on the LSC Group financial performance.

In the first quarter, the LSC Group has been able to improve its cash flow: as at 31 March, it had cash and short-term deposits of USD 29.26 million, which is by USD 3.13 million more than at the beginning of the year. Furthermore, LSC has reached an agreement with its major shareholder joint stock company "Ventspils nafta” that, if needs be, the latter would continue financing the LSC Group, so that the cash reserves of the LSC Group at any time do not fall below the USD 17 million threshold set by the bank syndicates.

 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Tanker Trends

Tanker Allision on the Piscataqua River

The U.S. Coast Guard says it is continuing to monitor the condition of the chemical tanker Chem Venus, after it allided with three unoccupied, moored sailboats

NAT Takes Delivery of Suezmax, Earnings Capacity Up

Nordic American Tankers Limited ("NAT" or "the Company") announced that it today took delivery of a Suezmax vessel, the Nordic Sirius, built at a shipyard in Japan.

BIMCO - Oil Product Tankers Earnings Decline as stockbuilding Slows Down

BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0833 sec (12 req/sec)