OREANDA-NEWS. December 01, 2009. Regardless of the extremely difficult economical situation in the shipping markets and overall global economy influencing directly the demand for oil product shipments the public Joint Stock Company Latvijas kugnieciba (Latvian Shipping Compnay-LASCO) has performed with net profit in the amount of USD 0.7 million during nine months period of unaudited JSC Latvijas kugnieciba Group financial report for nine months of 2009.2009. The Group has ensured successful core business with vessel operating profit of USD 40.4 million reveals the

“Taking into account the particularly low market activity and the dramatic decline of the freight rates in the market the results achieved by JSC Latvijas kugnieciba though lower than the year before are considered satisfactory and confirm that the cost optimization activities have been significant in securing successful business performance,” considers Imants Sarmulis, Chairman of JSC Latvijas kugnieciba Management Board.

“The leading shipping market analysts predict that the next few years will be extremely difficult for shipowners, even crucial for many of them, and consequently only the most competitive ones will continue to operate in freight shipment sector. For this very reason we have to apply maximum energy and all the material and immaterial assets, meaning knowledge, skills and experience of our employees, at our disposal to secure the niche of JSC Latvijas kugnieciba in the medium range tanker segment,” points out Imants Sarmulis.

Vessel operating profit for the nine months period of 2009 was USD 40.4 million and even though the indicator did not meet the level of the result for the corresponding period the year before it is estimated positively considering that it is considerably lower than the percentage of freight rates’ reduction.

In 9 months of 2009 Latvijas kugnieciba continued to dispose of its elderly tonnage. With prevailing decline of the global economy the company succeeded to accomplish a number of successful transactions including sale of the Group fleet’s 1983 built dry cargo vessel Telo for scrapping.

The tanker fleet renewal programme implementation has resulted in the reduction of the JSC Latvijas kugnieciba Group’s fleet age from 17.5 years at the end of 2005 to 7.8 years at the end of the report period, the total tonnage growing from 1.01 million tons to 1.22 million tons.

JSC Latvijas kugnieciba Group daughter enterprise LASCO Investment Ltd. has worked out the Group’s real estate development strategy for the next five years and commenced

its implementation. In accordance with the document the strategy defines three main targets for investment management: maximum return on the investments, creating maximum added value and sale of investments at maximum profit when the situation in the real estate markets stabilizes thus ensuring high added value to the shareholders.

The Group’s equity value at the end of the period was USD 549.1 million being USD 7.0 million higher than at the beginning of the year and it represented 48 per cent of the Group’s assets. The liabilities had reduced by USD 24.4 million since the beginning of the year and their proportion was 52 per cent of the Groups’ assets. JSC Latvijas kugnieciba Group’s assets comprised USD 1 132.8 million on September 30, 2009.

All the JSC Latvijas kugnieciba shares are traded publicly and are listed in NASDAQ OMX Riga Official List. In the report period the JSC Latvijas kugnieciba shares have been among the most actively traded ones - there have been 1 513 transactions with 3.11 million shares in the amount of LVL 1.53 million at the Stock Exchange. On September 30, 2009, JSC Latvijas kugnieciba share capitalization in NASDAQ OMX Riga reached LVL 116 000 000.