Andmed seisuga: 30.11.2024 02:38 (GMT+2)
On July 22, the Council of JSC Ventspils Nafta has considered and
approved the Annual Report of Ventspils Nafta for 2003, as well as the
consolidated Annual Report for 2003. Both Reports are prepared in
accordance with the international book-keeping standards, according to
the legislation of the Republic of Latvia, including widely accepted
book-keeping principles.
The net turnover of Ventspils Nafta in 2003 reached 55,4 million lats.
Taking into account the external factor circumstances that influenced
the activities of the transit business companies of Ventspils Nafta in
2003 it was planned when preparing the budget of 2003 that net losses
of Ventspils Nafta in 2003 would make 9,4 million lats. The losses of
the Holding will be written off from the reserves accumulated by income
of Ventspils Nafta during previous years.
In addition, the financial and economic results of the activities of
Ventspils Nafta within the first half of the year showed the stability
of Ventspils Nafta, because the preliminary net income for the period
from January to June of 2004 reached 1,2 million lats. It significantly
exceeds the forecast for this year' income - 176 thousand lats - and
confirms therefore the rightness of policy on Ventspils Nafta risk
diversification, as well as the return on investments into the spheres
of Ventspils Nafta activities other than transit business.
The most important event of 2003 for Ventspils Nafta was the
improvement of management system that was oriented to the long-term
perspectives of future development. As the result in 2003 the structure
of Ventspils Nafta was improved in accordance with the principles of
multi-industrial activities of the Holding by outsourcing the functions
of the holding company and dividing all business companies of the
Ventspils Nafta Holding into the respective spheres of activities.
Not considering the administrative or political stoppage of the export
deliveries by pipeline from Russia to Ventspils, transit business
companies of Ventspils Nafta Holding were active in 2003 by looking for
other ways to attract cargo, as well as by offering new kind of
services. However, because of the pressure of some negative external
circumstances, as well as in the result of unjustified activities of
Latvian Governmental structures responsible for taxation, the figures
of these companies in 2003 perceptibly influenced the total results of
the Holding.
Unlike 2002 the volumes of railway cargoes transhipped by the terminal
of Ventspils Nafta in last year increased by 4,3 million tonnes or 68%.
The terminal's contribution into the total transhipment of gasoil
railway deliveries from Russia and other CIS countries in 2003 reached
22,2%, but as to the transhipment of crude oil - 7,5%.
Technical and technological equipment of the terminal of Ventspils
Nafta in 2003 allowed to broaden the range of the transhipped products
by launching the transhipment of crude oil and gasoil with low sulpher
content viz. 0,035% received by railway. By using the terminal's
capacities to its most and by planning to activate more the attraction
of railway cargoes, in 2003 the terminal started the construction of
the most modern railway unloading facility that could be used for
unloading crude oil and petroleum products depending on the market
situation.
A new company Ventspils Nafta Terminals started its operations within
the framework of Ventspils Nafta Holding. It is 100% a daughter company
of Ventspils Nafta and took over the functions of the transhipment of
crude oil and petroleum products - the business activities in which
Ventspils Nafta itself was involved before October 1, 2003.
Taking into account the circumstances beyond the activities of the
company viz. the decreased export of crude oil and petroleum products
from Russia to Ventspils during the last months of 2003, the cargo
turnover for the reported period that was only one quarter for
Ventspils Nafta Terminals affected the financial results of Ventspils
Nafta Holding.
Although the stoppage of crude oil export by pipeline to Ventspils as
artificially created by Russian administrative and monopolistic
structures left a significant imprint on the financial and economic
results of LatRosTrans - the joint venture between Russia and Latvia
that ownes and operates oil and product pipeline on the territory of
Latvia, its net turnover for the reported period reached 13,5 million
lats, considering that the product pipeline operates to its full
capacity and delivers gasoil to the port of Ventspils.
Aiming to increase the volumes of the transported gasoil, in 2003
LatRosTrans invested 15 million lats into the modernization of main
pipelines and pump stations, as well as projects for the increase of
capacities used to transport petroleum products.
LatRosTrans undertakes active measures to overcome the excessive losses
of petroleum products incurred as the result of illegal activities by
investing not only its own resources but also co-operating with the
structures of State authority. Unfortunately, this complicated
situation in which nevertheless LatRosTrans was able to transport
significant volumes of gasoil, as well as plan further development of
company's business by long-term investments is aggravated by
unintelligible and groundless opinion of the State Income Service that
the losses of LatRosTrans incurred in the result of theft shall be
declared as petroleum products imported for own free turnover, and
respective taxes paid. LatRosTrans brought the action against the
excessive taxes levied on the financial activities of the company
because of the losses. The management and the Council of LatRosTrans
are positive that the decision in respect to this matter will be made
in their favour.
A successful operation in 2003 is reported by Preses Nams that
concentrated on the development of printing business and gained profit
in the amount of 0.7 million lats by reaching net turnover of 18.6
million lats. To restore its material and technical base Preses Nams
invested 1.7 million lats in 2003.
Ventspils Nafta, by diversifying its risks within several years, was
investing its financial resources into liquid real property objects in
the capital city of Riga (villa Maikapara nams , Preses Nams Building,
Office Building on Palasta Street in Vecriga), in health-resort Jurmala
(former spa Rigas licis ), in Ventspils and other places (conference
and holiday resort Lejastiezumi located at the Usmas Lake). In previous
years, including the period of Report, by considering positive trends
on the real property market described by a steady growth of prices the
market value of the property owned by Ventspils Nafta was constantly
increasing and providing for Ventspils Nafta a stable growth of capital
return as well as additional income reserves.
Ventspils Nafta Annual Report for 2003 was audited by Ernst & Young
Baltic . The Annual Report has to be further approved by the general
meeting of shareholders on July, 30.
JSC Ventspils nafta
For information:
Gundega Varpa
Tel.: 7229793
e-mail: gundega.varpa@vnafta.lv