OREANDA-NEWS. On 27 February 2008 was announced, that JSC Latvijas kuмniecоba (Latvian Shipping Company - LASCO) un-audited financial statements for 2007 prepared in accordance with International Financial Reporting Standards confirm successful performance of the Group net profit reaching USD 66 million – that is double or 32.3 million USD more than a year before. Net voyage result or net income from vessels’ operations has boosted considerably reaching USD 210.3 million or USD 54.8 million higher than in 2006.

he un-audited financial statements for 2007 have been presented and submitted for consideration to JSC Latvijas kuмniecоba Management Board and Supervisory Council.

Chairman of LASCO Supervisory Council Uldis Pumpurs underlines the outstanding financial results in 2007 achieved thanks to professional and focused work of company’s management and its employees as well as comparatively high freight rates in tanker market. U.Pumpurs points out: “The major value of any company is people, first of all, professional and loyal employees. Without them no business, no company can exist. Close team work in particular secures accomplishment of our key strategic objective – tanker fleet renewal. Today due to global economic processes demand for elderly tonnage has decreased considerably and we can appraise importance and necessity of this project.”

In 2007 major attention has been paid to fleet renewal. Within the project 10 tanker newbuildings have been ordered at 3.Maj shipyard in Croatia and 4 tanker newbuildings at Hyundai Mipo Dockyard Ltd. in Korea.

During the report period the Group took the delivery of four tanker newbuildings out of 10 ordered from 3.Maj shipyard in Croatia and all the vessels ordered from Hyundai Mipo Dockyard Ltd. in Korea. In 2008 completing the tanker fleet renewal programme LASCO will receive three more tanker newbuildings from Croatian shipyard.

In accordance with LASCO Operations Strategy for the period till 2015 and its tanker fleet development scenario, additional agreements have been signed with Korean shipyard Hyundai Mipo Dockyard Co. Ltd. for four medium size 52 000 DWT tanker newbuildings. Given estimate parameters of the tanker newbuildings it is planned to employ them for wide range cargo shipments – oil products, chemicals and vegoils.

All the LASCO fleet segments, except for reefers, have worked with profit during the 12 months of 2007. Total Vessel Operating Result has reached USD 70.3 million improving the corresponding result of the previous year by 56 per cent. The main contribution to the overall profits has brought tanker fleet – 89 per cent or USD 62.8 million. Results of the segment have been affected positively by implementation of tanker fleet renewal programme and thus increasing number of new vessels and their freight rates being considerably higher than those of older tonnage.

In 2007 unplanned ship repairs and comparatively low freight rates gave negative impact on reefer fleet performance. The final result of the reefer fleet is USD 0.7 million loss during the report period.

Due to unexpectedly warm climate and therefore lower consumption of energy resources as well as scheduled dry dock repairs LASCO’s LPG fleet showed comparatively low vessel operating results in 2007. Both the LPG carriers “Vidzeme” and “Kurzeme” brought in only 10 per cent or USD 7.1 million to the total vessel operating profit compared to 27 per cent and USD 12.2 million a year before.

During 2007 LASCO’s Ro-Ro/general type vessel “Telo” has been employed successfully in time charter in accordance with a previously signed agreement the vessel operating profit slightly exceeding USD 1 million or 1 per cent of the total.