On  June  19, 2003 JSC "Ventspils nafta" Supervisory Board reviewed the

company   financial   statements  and  operational  results  for  2002.

Supervisory  Board  resolved  to recommend JSC "Ventspils nafta" Annual

Report  for  2002  and consolidated group accounts of "Ventspils nafta"

and  its daughter companies for approval of the AGM of shareholders, to

be  held  on July 30, 2003. All accounts and reports have been prepared

in  compliance  with the laws and accounting principles of the Republic

of Latvia and International Accounting Standards.



According to JSC "Ventspils nafta" parent company audited accounts, net

sales is LVL 28.1 million, and net profit is LVL 2.7 million. Net sales

of "Ventspils nafta" group amounts to LVL 65.9 million.



In  2002  "Ventspils  nafta" had to run its business under considerable

external  pressures, mainly the administrative decisions of the Russian

oil  pipeline  monopoly  Transņeftj  to prohibit Russian oil export via

Ventspils,  diverting most of shipments via Primorsk terminal (owned by

Transņeftj).  Due  to  the above reasons, the reloaded volumes of crude

oil  -  the  key  service of  "Ventspils nafta" - shrank nearly by half

compared  to  2001,  which happened to be an extremely successful year.

Total  physical  volumes of reloaded oil products have decreased by 8.5

million tons over the past year, consequently, leaving an impact on the

company financial performance in 2002.

JSC  "Ventspils  nafta" Management Board continued seeking for new ways

how  to  attract  clients  and  how to diversify the range of services.

Owing  to  these  activities  as  well  as  to the extensive investment

programme for renovation and modernisation of the terminal, implemented

by  the  company shareholders and management over the recent years, the

company was able to maintain the reloaded volumes over 10 million tons,

despite  of  the  complicated situation. Last year the company reloaded

13.8  million  tons of oil and oil products, including 7.5 million tons

of  crude  oil,  5  million  tons of diesel oil and 1.3 million tons of

petrol.