FESCO’S LOSSES SOAR

   Vladivostok-based Far Eastern Shipping Co. reported soaring losses of $128 million for the year ended Dec. 31, 1998, nearly three times the deficit recorded in the previous year.
    The net deficit represents over 40 percent of the company’s hire and freight revenues of $292 million for 1998.
    In 1997, FESCO made a net loss of $45 million on hire and freight revenues of $338 million.
    The shipping line’s loss before tax and exceptional items was $35 million last year, compared to $39 million in 1997.
    Exceptional losses were $90 million in 1998, as compared to $12 million in the previous year.
    In a letter to shareholders, FESCO President Viktor M. Miskov said that 1998 was "another difficult year."
    FESCO has liquidated unprofitable funds, reduced subsidies to unprofitable departments and taken other positive measures in 1998, he said.
    He said that the financial position of FESCO was stable in 1998, an improvement over the "crisis" situation the company experienced in 1995.
    Russian-headquartered FESCO is the last remaining major liner operator from the former Soviet block.
    FESCO launched a second transpacific service in April.