Financial results for the JSC Ventspils nafta in the first half of 2009 in line with previous forecasts

The consolidated unaudited net turnover of the public JSC Ventspils nafta Group
in the first half-year of 2009 has reached LVL 39 million, and net profit - LVL
0.9 million. These results entirely correspond to the budget forecasts for 2009
published before by JSC Ventspils nafta, anticipating the consolidated net
turnover of the Group to be at least LVL 60 million, and the net profit - at
least LVL 2 million. 

“The results for the first six months of 2009 show that business for all
companies of JSC Ventspils nafta Group is stable and is in line with the
financial results planned in the budget, at a time when JSC Ventspils nafta
Group has focused on the management of investments in the core transit business
segment. The activity of JSC Ventspils nafta Group companies in the
international market has been impacted by the global economic in the reporting
period, yet they have been able to take balanced actions to deal with the
complex situation,” emphasizes Chairperson of Management Board for JSC
Ventspils nafta Olga Pētersone. 

The JSC Ventspils nafta subsidiary Ventspils nafta termināls Ltd has
transshipped in total more than 6.4 million tons of crude oil and petroleum
products in the first six months of 2009. In terms of long-term prospects, the
company continues to strengthen its positions as the most modern complex of
crude oil and petroleum product transshipment in the Baltic region, running its
operations in the same way as all other terminals in the international company,
the Vitol Group, co-owner of Ventspils nafta termināls Ltd, around the world. 

Ventspils nafta termināls Ltd is the largest of such companies in the region,
and its crude oil and petroleum products shore-tank farm has 1.2 million cubic
meters of storage and has no comparator among similar companies in the nearest
countries. 

Also the JSC Ventspils nafta subsidiary, owner and operator of crude oil and
petroleum products pipeline in the territory of Latvia LatRosTrans Ltd has
worked consistently in the reporting period in accordance with previous budget
forecasts - the company has gained revenue mostly by transporting petroleum
products to the Ventspils port. LatRosTrans Ltd is planning to ship up to 5
million tons of diesel fuel in 2009. 

Oil transportation in the direction of Lithuania via the pipeline owned by
LatRosTrans Ltd has still not resumed due to the geopolitical situation. To
maintain a positive cash flow in this situation, the company's management
regularly assesses and reduces activity and expenditure. A decrease in
expenditure of more than LVL 1.5 million was achieved in the budget of
LatRosTrans Ltd for 2009 as against expenditure in 2008. At the same time,
other options for increasing income sources for the company are being reviewed. 

In the reporting period, the JSC Ventspils nafta associated company JSC Latvian
Shipping Company continued pursuing its strategic goal - ensuring an increase
in the Group's value and retaining its position among the leading medium range
tanker owners in the world. 

Irrespective of the low market activity and the sharp decline in ship charter
rates, net profit for JSC Latvian Shipping Company in the first half-year of
2009 has reached USD 9.3 million as a result of effective control of
expenditure. Despite the global economic crisis, which directly affects demand
for raw materials, JSC Latvian Shipping Company managed to maintain activity in
the reporting period, as a result of shipping activity increasing by 10% in
comparison with the first half-year of 2008. 
 
The global economic situation and local market conditions are indicating that
all the companies of JSC Ventspils nafta Group will have to work hard to
deliver good performance in the annual reporting period. However, as done in
the past, all the companies of JSC Ventspils nafta Group continue working hard,
to ensure that all interests of all shareholders are looked after. 


JSC Ventspils nafta is the central holding company in a transit-oriented Group
whose task is to manage the investments in subsidiaries by promoting the
Group's joint values and growth in the value of each subsidiary individually.
JSC Ventspils nafta Group is working in the following areas: transshipment of
crude oil and petroleum products; transport of crude oil and petroleum products
by pipelines; a shipping business. 





JSC Ventspils nafta
For further information -
Gundega Vārpa,
Public Relations and Advertising Manager, 
tel.: +371 67229182;
e-mail: gundega.varpa@vnafta.lv
www.vnafta.lv
www.vnt.lv
www.latrostrans.lv