JSC   "Ventspils   nafta"  Management  Board  reviews  the  company

performance in the first quarter of 2002 

In the first quarter of 2002 "Ventspils nafta" has reloaded 5.5 million

tons  of oil and oil products, including 3.6 million tons of crude oil,

1.4  million  tons  of  diesel  oil  and  0.5 million tons of other oil

products. Net sales for the period amounts to LVL 11.7 million, and net

profit  is  LVL  3.8  million.  The  targets  set  in  the draft budget

(approved  by  the  Company  Management Board in December of 2001) have

been  surpassed.  Therefore,  the  Management  Board  move  that AGM of

shareholders,  to convene on May 23, 2002, approve the budget for 2002:

operational  revenues  LVL  54.5  million,  operational  costs LVL 44.8

million,  net  profit  LVL  7.2  million  (the  draft  budget envisaged

operational  revenues  LVL  48  million,  operational  costs  LVL  43.6

million, net profit LVL 3.4 million).

JSC  "Ventspils  nafta"  Management  Board  reviews  the company Annual

Report for 2001 

JSC  "Ventspils nafta" Management Board has reviewed the company Annual

Report for 2001 (prepared in compliance with the Latvian laws and IAS),

as  well as the consolidated group accounts for 2001, and recommends it

for the approval to AGM of shareholders, to convene on May 23, 2002.

Ventspils  nafta  parent  company  net sales in 2001 amount to LVL 46.7

million,  the  profit  earned  was  LVL  24.7  million. Ventspils nafta

concern sales amounted to LVL 92.6 million.

The  initial  profit  forecast  for 2001 was LVL 8.6 million, which was

later increased to LVL 17.3 million on the basis of actual performance.

Also  this  forecast  was  surpassed  owing  to record reloaded volumes

during  the  recent years, and amounted to 22.3 million tons of oil and

oil  products,  which is 18% more than in 2000. Moreover, in 2000 there

were  extraordinary  expenses  to  the  tune  of  LVL 6 million), which

explains the difference in 2002 and 2001 profits.

In 2002 Ventspils nafta will have to face an increasing competition due

to  the  expected launching of Russian oil exports via Primorsk port in

Russia.  Already  in  the  first  quarter  of  2002 the volumes are 0.5

million  tons  down to 2001. Therefore, the Management Board recommends

that  the  AGM  of  shareholders  vote  for transfer of the entire 2001

profits  to  reserves, to be used for the Company budget and investment

programme  (more  than  USD 90 million over the period between 2001 and

2005).