Profit of Latvian Shipping from Ship Activity Increased by 6%
OREANDA-NEWS. June 5,
The company’s gross profit has increased as well – in the first quarter of 2012 it was 3.181 million lats, which is 22% more than in the same period a year ago (2.605 million lats). Net profit of the LSC Group has been negative, namely, the company had net losses of 9.1 million lats in the first quarter. Most of the losses – 8.3 million lats – are related to impairments in the value of the fleet as required by International Accounting Standards. The decrease in fleet value in the first quarter of 2012 directly reflects the difficulties that all ship owners have to face in the current financial situation.
“The economic climate continues to be challenging for all ship owners, but the product tanker market, which is LSC niche business, has been more resilient than other segments of the tanker industry in Q1/2012,” explains Simon Blaydes, chairman of the LSC Management Board.
The average charter rates for “handy” size tankers (LSC owns 7 “handy” size tankers, each with a deadweight 37 thousand tons) have increased considerably in the first quarter of
On March 31, 2012, the total value of the LSC Group’s assets was 333 million lats. The total value of the LSC Group’s fleet has increased from 277.4 million lats to 289.8 million lats, which is attributable to the fact that the ships that were previously classified as assets for sale have been included in the fleet.