Latvian Shipping Company (Latvijas kugnieciba) is going through the most difficult period in its history.

During the first half of this year, the company‘s revenue declined 2.3 times, and the losses amounted to 13 million lats, which resulted not only from decreased ship freights, but also from the decline in the lat and the U.S. dollar exchange rate, as well as company’s relatively old and inefficient tankers.

The company owns 23 and rents 2 tankers. Some of the vessels are over 20 years old. They have to be replaced with newer ones. Instead of the sold old “Cherson” class tankers, the Latvian Shipping Company plans on buying four newer tankers.

The main owner of the Latvian Shipping (49.94 percent of shares) is the company “Ventspils Nafta”. The latter also owns “Ventspils Nafta Terminаls”, as well as the Latvian-Russian joint company “LatatRostrans”, which serves the oil pipeline “Polotsk – Ventspils”. While oil supplies from Russia are limited, the oil is supplied to Ventspils port via the same pipeline that goes to Mazeikiai as well.

Latvian media announces that the main owner of  “Ventspils Nafta” is the international oil and gas group “Vitol Group”, registered in Switzerland. It has been officially declared that almost 48 percent of stock shares belong to “Euromin Holdings (Cyprus) Limited”. The company “Latvian Naftas Tranzits” owns nearly 38 percent of shares.

Latvian media does not reveal whether “Ventspils Nafta” will contribute to the renewal of the Latvian Shipping fleet. However, “Latvijas Kugnieciba” intends to dispose of all old tankers, and, as published, its modern fleet will be comprised of modern tankers whose average age is six years”.