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.

 


People & Company News

China Cosco Sinks into Red

Dragged by lackluster freight rates in the maritime transport market during the first half of 2016, China Cosco Holdings logged a 7.2 billion yuan ($1.07 billion) net loss for the January-June half,

DNV GL Backs John Laing on First Offshore Wind Investment

DNV GL successfully completed its due diligence work of the offshore wind farm “Nordergründe” in the North Sea, reviewing and quantifying the technical risks of the project.

MobileOps Pursuing Maritime Business

Redmond, Wash. based MobileOps, Inc., a software company specializing in the design and development of maritime software applications (dispatch, safety, compliance,

Tanker Trends

NASSCO Christens LNG-ready Tanker Constitution

On Saturday, August 27, shipbuilders at General Dynamics NASSCO celebrated the christening and launch of the Constitution, the sixth ship in a series of eight eco-friendly

Veg Oils Can Benefit Tankers

A number of product tankers, with certain characteristics, can carry edible oils (also called veg oils) as well as oil products, meaning that veg oil trade should

Worldscale Flat Rates to Fall Again

The concept of Worldscale is not an easy principle to grasp, particularly for those outside the tanker industry, says Weekly Tanker Market Report by Gibson.   The

Finance

China Cosco Sinks into Red

Dragged by lackluster freight rates in the maritime transport market during the first half of 2016, China Cosco Holdings logged a 7.2 billion yuan ($1.07 billion) net loss for the January-June half,

India Shipping Ministry Enlarges Scope of Sagarmala

India's Ministry of Shipping has formulated a revised Central Sector Scheme to provide financial support to Major and Non-Major Ports as well as State Governments

Industry Wants Hanjin Shipping to Merge with Hyundai Merchant Marine

The Korea Shipowners’ Association (KSA) has officially suggested Hanjin Shipping merge with Hyundai Merchant Marine (HMM) to prevent  court receivership and liquidation, reports Business Korea.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Port Authority Salvage Ship Repair 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: 0.0831 sec (12 req/sec)