Ventspils nafta                                                 16.12.2004.



In 2005 Ventspils Nafta Also Operates at a Profit



Today, December 16, the Council of Ventspils Nafta, JSC has agreed to the 

Board’s Resolution that approves budget of the Company for 2005. Respectively 

Ventspils Nafta’s net turnover in 2005 shall be at least 60 million Lats and 

net profit has been estimated at 0.6 million Lats.



In 2005 the companies of the Ventspils Nafta Holding will carry on to be 

active in the following main spheres of business, i.e. the transhipment of 

crude oil and petroleum products (Ventspils Nafta Termināls, Ltd.); the 

transportation of crude oil and petroleum products by pipeline (LatRosTrans, Ltd.); 

printing business (Preses Nams, JSC), as well as the real property development 

and its economic management (the companies owned by Nekustamie Īpašumi VN) and 

publishing business (Mediju Nams, Ltd.). Ventspils Nafta also holds a significant 

stock of shares in the public joint stock company Latvian Shipping Company. 



The main task of Ventspils Nafta as the central company of the Holding 

throughout 2005 and in the future shall be increasing of the total value of the 

Holding by successfully developing and increasing value of each individual 

business structure, and re-allocating funds within the Holding by transferring 

them from businesses where the expected return on capital has not been rather 

high, into already existing or new spheres of business with more higher return 

on capital.



To implement the above tasks in 2005 Ventspils Nafta will be managing investments 

on the level of businesses that include planning of strategic development of the 

Holding’s companies; arranging for efficient planning and supervision; managing 

and planning of the Holding’s finances, investments and taxes; drawing up reports 

of internal auditing, as well as consolidated annual reports. The functions of 

the central company of the Holding include also identification, analysis and 

management  and centralized rendering of administration services to the companies 

of the Holding, including legal and financial services as well as services with 

respect to book-keeping, personnel development and project management, etc. In 

2005 Ventspils Nafta will carry on the appraisal of the alternatives of using 

and developing the real property owned by the Holding, and considering also 

possibilities of selling some of their real properties.



The most important task of the Ventspils Nafta Termināls, Ltd. as a daughter 

company of Ventspils Nafta in 2005 shall be to increase the throughput volumes 

of crude oil and petroleum products delivered by railway, using the capacities 

of the terminal to receive and tranship cargoes delivered by railway. In 2005 

the Ventspils Nafta Termināls, Ltd. will continue to co-operate with the 

existing exporters of crude oil and petroleum products, specially observing to 

attract new customers, and as during all the years before offer them more 

accomplished and competitive tariff policy, including the services of higher 

quality.  Taking into account the existing market situation, the Ventspils Nafta 

Termināls, Ltd. has planned to increase the range of crude oil and petroleum 

products currently handled at the terminal. In 2005 it will proceed to search

for a potential strategic investor with the intention of renewing crude oil 

flow by pipeline to Ventspils.



Like this year, the LatRosTrans, Ltd. being another daughter company of 

Ventspils Nafta in 2005 will provide the transportation of gas oil to Ventspils, 

including transportation of crude oil to both Mazhekiai Refinery and Butinge Oil 

Terminal by loading up to its maximum the pipeline capacities to these directions. 

Responding to the estimated growth of demand for gas oil transportation to 

Ventspils within the next few years, LatRosTrans, Ltd. in 2005 will keep 

implementing the investment project for increasing the existing petroleum 

products’ pipeline capacities from 6.3 million tonnes up to 8 million tonnes 

annually, increasing thus profitability of the Company. In 2005 in co-operation 

with law enforcement authorities LatRosTrans, Ltd. will purposively continue to 

implement measures of decreasing as well as fully eliminating any losses of gas 

oil over the admissible volumes of losses stated in regulatory documents.



In 2005 the daughter company of Ventspils Nafta – Preses Nams, JSC has planned 

to start fulfilling the Strategic Development Programme for 2005-2008, including 

its main tasks such as vacating their production premises at 3 Balasta dambis in 

Riga before the second half of 2006; maintaining their strategic position in the 

printing market as well as increasing the value of the company. It has been 

actively planned to extend marketing, sales and development policy.