Latvijas Kugnieciba : About the unaudited financial data of JSC “Latvian Shipping Company” for the third quarter

Latvijas kugnieciba
Interim report (Q1 and Q3)

About the unaudited financial data of JSC 'Latvian Shipping Company' for the third quarter

The Latvian Shipping Company Group (LSC Group) revenue for 9 months 2017 was USD 69.11 million or EUR 62.47 million (USD 74.33 million (EUR 66.81 million) in 9 months 2016), weaker net voyage results - USD 55.64 million or EUR 50.43 million (USD 66.12 million (EUR 59.46 million) in 9 months 2016).

Net profit in nine months 2017 was USD 13.08 million or EUR 11.94 million (net loss USD 19.33 million (EUR 16.93 million) in 9 months 2016) mainly from the reversal of the fleet revaluation loss and profit from sale of non core assets, decrease in fleet value in 9 months 2017 by USD 13.52 million (EUR 38.54 million).

Fleet operating profit - USD 32.64 million or EUR 29.85 million in 9 months 2017 considerably lower than previous year (9 months 2016 - USD 43.47 million (EUR 39.16 million).

No changes in commercial fleet (16 vessels). LSC Group continued strong emphasis on third party vessel technical management by the LSC Group's subsidiary 'LSC Shipmanagement' Ltd (25 vessels in total, including 9 third party' tankers).

Key financial indicators forLSC Groupnine month 2015-2017 (USD million/EUR million):

	9M 2015	9M 2016	9M 2017	9M 2015	9M 2016	9M 2017
	(USD)	(USD)	(USD)	(EUR)	(EUR)	(EUR)
Sales	68.93	74.33	69.11	61.71	66.81	62.47
EBITDA	35.62	40.33	29.74	32.67	36.35	27.27
Profit (loss)/ before tax and exceptionals	15.38	(0.81)	(0.96)	14.53	(0.42)	(0.33)
Exceptionals ((loss)/income from financial assets)	(14.21)	0.02	4.50	12.61	0.02	3.92
Exceptionals (fleet impairment/reversal of fleet revaluation loss)	(2.40)	(18.26)	9.77	(2.20)	(16.28)	8.56
Net profit/(loss)	(1.41)	(19.33)	13.08	(0.45)	(16.93)	11.944

About JSC 'Latvian Shipping Company'

JSC 'Latvian Shipping Company' (Nasdaq Riga: LSC1R) is vessel owner in the segment of medium and handy size tankers. The company owns 16 modern vessels employing more than 1300 professional and high-skilled seamen from Latvia. Besides, LSC subsidiary 'LSC Ship management' Ltd is technically serving 9 more vessels, thus managing a fleet of 25 vessels. The average age of the LSC fleet is 9 years. All of the vessels have received ISM (International Safety Management) certificates.

Marita Kroiča, Communications Consultant

JSC 'Latvian Shipping Company'

Telephone: [phone]

E-mail: [e-mail]

www.lk.lv