Public joint stock company Ventspils nafta Group consolidated net profit for
the first-half year of 2007 reached LVL 9,6 million, increasing by 130%
compared to a respective period of last year. Whereas the consolidated net
turnover of JSC Ventspils nafta Group in the period from January to June of
2007 comprises LVL 43,7 increasing by 13% compared to the first half-year of
2006.
”Operating results of JSC Ventspils nafta Group for the first half-year mark
beginning of a new stage of development of the company with increased activity
from the strategic investor of JSC Ventspils nafta and its direct involvement
in development of transit arm of the holding company increasing respectively
the business development prospects and ensuring value increase of the whole JSC
Ventspils nafta Group”, emphasizes Olga Pētersone, Chairperson of the Managing
Board of JSC Ventspils nafta.
During the first six-months of 2007, the average price of JSC Ventspils nafta
shares in the Riga Stock Exchange (RSE) was LVL 2.54 with the highest price
reaching LVL 2.86. The average price during the period from January to June of
2007 was by 35 santims higher than in a respective period of 2006 when it
reached LVL 2.19
As reported before, in autumn of 2006, the portfolio of JSC Ventspils nafta
shares previously owned by the Latvian state was sold at the RSE during a
public auction organized by the Latvian state, and Euromin Holdings (Cyprus)
Limited, a company of the international oil and gas transport concern Vitol
Group, acquired a 34.75% stake. In April 2007, Vitol informed about increasing
its stake in JSC Ventspils nafta to 47.89%. Thus participation of international
high-level professionals in administrative bodies of JSC Ventspils nafta was
ensured enhancing long-term prospects of JSC Ventspils nafta and guaranteeing
effective company management.
During the period from January to June of 2007, major events in JSC Ventspils
nafta Group are related to operation of its crude oil and petroleum products
transhipment company Ventspils nafta termināls Ltd. One of the most important
factors having positively influenced financial results of JSC Ventspils nafta
during the reporting period was the successful economic activity of Ventspils
nafta termināls Ltd.
During the first half-year of 2007, Ventspils nafta termināls Ltd has handled
nearly 7 million tons of crude oil and petroleum products delivered to the
terminal by rail, diesel pipeline and sea. This amount is by 3.6 million tons
more than in a respective period last year. Cargo amount in Ventspils nafta
termināls Ltd is increasing since January, 2007 after having successfully
started receiving of gasoil through petroleum products pipeline and promoting
cooperation with the international oil transport and trading consortium Vitol
being a shareholder of JSC Ventspils nafta and co-owner of Ventspils nafta
termināls Ltd.
During the first half-year of 2007 Euromin Holdings, a company of the
international concern Vitol, has become a full-fledged business partner of the
holding company acquiring a 49% shareholding in Ventspils nafta termināls Ltd.
This transaction shows that activities of management of JSC Ventspils nafta in
the previous years, by ensuring increase in value of companies within the
concern have been successful and comply with shareholders' interests, because
the agreement between JSC Ventspils nafta and Vitol confirms that technical and
technological capabilities, human resources and development potential of
Ventspils nafta termināls Ltd are highly appreciated. As a result of strategic
cooperation between the largest crude oil and petroleum products transhipment
terminal in the Baltic region and Vitol, an influential company of the global
oil and gas sector, a serious joint venture of regional scale was created.
Agreement with Vitol is of key importance to Ventspils nafta termināls Ltd and
the entire JSC Ventspils nafta Group because the new shareholder, in addition
to finances, will ensure stable operations, guaranteed income and jobs for in
the terminal. At the same time, JSC Ventspils nafta will remain the majority
shareholder in the terminal.
Transaction between JSC Ventspils nafta and Euromin Holdings stipulates price
of USD 90 million to be payable for a 49% stake in Ventspils nafta termināls
Ltd. Vitol, on its hand, guarantees also delivery of cargoes to the terminal or
financial compensation if terminal's load is not ensured at the agreed level.
With Vitol's participation in the share capital and management of the company,
Ventspils nafta termināls Ltd has become more active in considering its
business expansion opportunities, during the reporting period starting to study
construction possibilities of a heavy fuel shore-tank farm in the terminal's
current area.
After the end of the six-months period of 2007 aimed towards optimization of
management structure of the company, there were also introduced changes in the
Supervisory Board for JSC Ventspils nafta. Vladimirs Solomatins having
performed functions of a deputy chairman of the Supervisory Board for JSC
Ventspils nafta for many years, being a doctor of economics and a professional
and specialist in the sphere of crude oil and petroleum products transit was
elected as a chairman of the Supervisory Board.
In this turn, foreign shareholder of JSC Ventspils nafta has extended its
influence over this administrative institution of JSC Ventspils nafta due to
its representatives getting another one of three positions of deputy chairman
in the Supervisory Board.
JSC Ventspils nafta
Further datails -
Gundega Vārpa,
tel. 7229793;
e-mail: gundega.varpa@vnafta.lv
