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 Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Danelec Marine Expands in Brazil

Press release - Danelec Marine has announced that it is expanding its presence in Brazil by naming Telnav Telecomuniçacões Navais a Certified Service Center. With

MARAD Backs Emissions Reduction Projects

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced it will provide more than $1 million to support the development of two new emission-reducing maritime solutions.

Michelle Obama to Christen Navy's Newest Submarine

U.S. First Lady Michelle Obama will join builder General Dynamics Electric Boat, a wholly owned subsidiary of General Dynamics, in christening Illinois (SSN-786), the U.

Tanker Trends

Teekay LNG Partners Declare Distribution

Teekay GP LLC, the general partner of Teekay LNG Partners L.P. has declared a cash distribution of $0.70 per unit for the quarter ended September 30, 2015. The

TMS Cardiff Gas Orders First LPG Carriers

TMS Cardiff Gas Ltd. has signed a contract with Hyundai Heavy Industries of Korea for the construction of two 78,700 cbm LPG carriers with the option to build another two.

Odfjell's Tanker Overhaul Seeks to Slash Emissions by 20%

Norwegian tanker shipper Odfjell announced it is upgrading the propulsion systems aboard 19 of its chemical tanker vessels in a move that aims to reduce its fuel


Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,

Smith Taken on Rolls-Royce Holdings Board

Rolls-Royce Holdings plc today announces the appointment of Sir Kevin Smith CBE as a Non-Executive Director.  Sir Kevin will join the Board with effect from

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Port Authority Ship Simulators Shipbuilding / Vessel Construction
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: 0.1763 sec (6 req/sec)