OREANDA-NEWS. August 31, 2011. Latvian Shipping Company (LSC) and its subsidiaries (LSC Group or Group) 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.

In the reporting period the voyage income from shipping was 46.18 million USD. During Q1-Q2/2011 LSC Group has concluded 9 new chartering agreements, with 11 agreements still in force concluded by the previous management who were controlling the business until 17 December 2010.

On 23 June 2011 LSC Group took delivery of its latest new building tanker “Latgale” from “Hyundai Mipo Dockyard” shipyard in Korea. “It was a very important event for LSC Group with the new management successfully managing to arrange financing for its new build programme in a very short period of time,” indicated Chairman of LSCO Board Paul Thomas.

On 30 June 2011 the fleet under commercial management of the LSC Group consisted of 22 tankers, 19 of which are owned by the LSC Group, with 3 vessels belong to other ship owners. After the reporting period on the 27th July 2011 LSC received its second new build tanker “Zemgale” from “Hyundai Mipo Dockyard” shipyard in Korea thus completing the first stage of its fleet renewal programme.

“There has been a slow but steady improvement in ship chartering rates throughout the reporting period which has enabled LSC Group to achieve expected earnings. Looking forward the LSC management is acutely aware of the impact worldwide economic events can have on the earning potential of ship-owners, however, with a fleet that is predominantly time chartered, the resulting steady income stream will give some protection against the current unstable economic environment” emphasises P. Thomas.