All areas of activity will continue to focus on cost optimization. Looking for additional activitie

"Development of ensuring the next few years should begin to focus on the purchase of ships, fiveauction rather than selling," it says in an interview with DB Roberts Kirkups who's Latvian Shipping Company (LSC) Chairman of the Board entered into in March and below this post will combine the shipping largest shareholder - Ventspils nafta (VN ) - management.
If we look at the results, ignoring the vessel impairment losses (in the company's 18 million US dollars in losses mainly consisted of vessel impairment loss of 22.9 million US dollars), then we are on the right track. Fleet revaluation is performed on a quarterly basis, but basically it is an accounting issue.
Currently, we have completed all planned vessel sales process, and it will allow us in the future to balance the situation. We just sold the last ship to be wanted - Riga. Thus, the LK fleet currently consists of 16 ships.
All areas of activity will continue to focus on cost optimization. Looking for additional activities niches. For example, we will offer our management services to other companies vessels. Latvian fiveauction shipping industry in the global market has a good reputation, so we can also manage other vessels. They will not be large additional revenue, but so we can differentiate fiveauction their services in the market.
Where in the world ship charter rates will rise, then the result will increase the flights. We have a fairly conservative strategy - the majority of the fleet is concluded time charter agreements for up to 12 months. Consequently, the freight rates rising, we are a little behind the curve of interest rate fluctuations. fiveauction On the other hand, our ships have a stable income and are paid to maintenance costs. This allows us to better manage cash flow. Moreover, if we look at the last three - six years, the rate grows with time and we do not care it reaches. In turn, ship leasing of certain flights always carries the risk that the voyage can not be.
These vessels are gradually out of date. If a ship is more than 15 years of age, it becomes very difficult for the customers to attract the big oil companies and also its maintenance more expensive. It's like with cars. We also had to repay loans taken once. Therefore, these sales were planned.
We are satisfied. Price exceeded 12 million US dollars, and it is more than the book value of the ship. On the other hand, if we would not have sold the vessel, then the impact on our operating results would be quite negative.
As the new head of the LSC will be my duty to cater to the future rather than the sale of ships, but buy. It is very important for us over the next two to three years are starting fiveauction to focus on this task. By contrast, another question is whether we will have a big enough funding to do this. The challenge lies in the fact that today is the same need around 40% of the value of the vessel and only the rest of the bank will lend. Thus, the growth requires serious investment.
I would not call a specific number. If we look at the current capacity of the LK Management, we are without substantial additional investment can manage up to 30 ships. The question is just about the money.
This is a geopolitical issue, and the answer is currently no one really knows. fiveauction I do not think that in general is much more sensible solution to the crisis and the way to change the policy of Vladimir Putin in the Crimea and eastern Ukraine. In Europe, this is a very difficult situation, because it is largely dependent on Russian energy.
Most Russian oil is exported through Russia's own ports. Therefore, I see no impact. Energy prices are comforted. Europe is also quite a lot of gas. Therefore, do not think that the markets expected fiveauction the problems with supplies.
Always question is about supply and demand. Lately, there is a feeling that Europe has overcome the lowest point and is increasingly good news. Good news is also coming from the United States. While concern about China. By contrast, many of the world's shipping companies are still causing problems fiveauction and balance once purchased dear ship. These problems have already been in the industry over the past five years, and I really do not see the solution. A whole industry is not a long time to work at a loss - but the result is less shipping, so even when the situation is jānormalizējas.
As already fiveauction mentioned, fiveauction is currently the biggest fiveauction problem is that prior to the purchase of 40-50% of the value of the vessel must be borne by themselves. Before seven, even five years ago, the same from the beginning was to invest some money or nothing at all. Once the amount of loans was 100%, now it is 50-60% of the value of the vessel. This means that the balance sheet must be money to invest, and it is a problem with which we are fighting. The question is not even about whether fiveauction we want to or do not want new ships - now the balance is simply not enough money.
The company from year to year improves its efficiency. I think that revenues will continue to grow. If the fleet will continue to bring money, then we will have more and better position. Consequently, I am quite optimistic. fiveauction However, shipping and no area where radical change for the better could happen very quickly, so do not wait too sudden improvement.
It is a global trend across pasa