LASCO Doubles Profit Reaching USD 66 million in 2007

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| Source: Latvijas kugnieciba
multilang-release
JSC Latvijas kuģniecība (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. 

The un-audited financial statements for 2007 have been presented and submitted
for consideration to JSC Latvijas kuģniecība 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. 



Information: 

As at the end of 2007, the fleet under JSC Latvijas kuģniecība commercial
management is comprised of 45 vessels - 37 tankers, including 3 tankers time
chartered in from other shipowners, 2 LPG carriers, 5 reefer vessels and 1
Ro-Ro/general type vessel. 

JSC Latvijas kuģniecība ranks among 10 largest shipowners in the world in small
and medium size tanker segment (27 500 - 52 000 DWT). 




For detailed information:
Marita Ozolina-Tumanovska
Head of PR Department
Phone: +371 7020120, 9287169
E-mail : marita.ozolina@lscgroup.lv