Ventspils nafta                                                 25.08.2005



AS Ventspils nafta profit for the first six months of 2005 LVL 7.6 million



A/s Ventspils nafta profit after tax for the reporting period amounts to 

LVL 6.5 million in accordance with applicable laws of the Republic of 

Latvia and generally accepted accounting policies; and LVL 7.6 million – 

in accordance with International Financial Reporting Standards. 

A/s Ventspils nafta profit exceeds several times both the forecasted profit 

for the reporting period, i.e. LVL 0.3 million, and profit for the analogous 

period in 2004, when the profit of a/s Ventspils nafta holding was LVL 1.3 

million. 



For the period from January to June 2005, the net turnover of a/s Ventspils 

nafta Group reached LVL 42.4 million, exceeding thus the result of 2004 by 

57%. The results of a/s Ventspils nafta financial activity exceed even the 

budgetary forecasts for 2005 that were approved by the Supervisory Board of 

a/s Ventspils nafta, anticipating net turnover of the holding for the entire 

2005 in the amount of LVL 60 million and net profit for 2005 – LVL 0.6 

million.



Olga Pētersone, Chairperson of the Board for a/s Ventspils nafta says: ‘The 

first half of 2005 was an active time for the joint stock company Ventspils 

nafta and crowned with successful financial and economic results increasing 

both the turnover and income figures of the Group. Within the first six 

months of 2005 the operation of a/s Ventspils nafta demonstrated growth of 

the Group and high development potential, as for the reporting period all 

companies of the Group were operating on a level planned or even exceeding 

forecasted figures.’



In the first six months of 2005, SIA Ventspils nafta termināls’ throughput 

results for motor gasoline remained on the highest level ever recorded by 

the company – the volume of motor gasoline, handled in the above mentioned 

period, increased by 0.7 million tons, compared to the respective period of 

2004. The growth of gasoline volumes handled by SIA Ventspils nafta 

termināls is connected with high demand for this product in the USA and 

Europe, as well as successful policy for attraction of customers by 

offering them very profitable kind of service that is not offered by other 

terminals – gasoline loading into tankers having a deadweight up to 100 

thousand tons. Currently, this kind of service, providing convenience for 

customers, ensures a significant decrease in freight rate costs. For the 

period from January to June 2005, gas oil volumes handled by SIA Ventspils 

nafta termināls remained at the same level as within the period between 

January and June 2004.



At the same time SIA Ventspils nafta termināls operation continue being 

negatively influenced by external circumstances beyond SIA Ventspils nafta 

termināls control, i.e. the sharp increase of Russian crude oil export 

duties for the reporting period resulted in the total decrease of crude oil 

export by railway from Russia by 4 million tons, making it right now 

completely unused by Russian oil exporters.



During the first half of 2005, SIA LatRosTrans, crude oil and petroleum 

products pipeline operator, completed two important investment projects, 

which, together with other implemented projects of the investment programme, 

significantly, i.e. 7.5 million tons of gas oil annually, increase pumping 

capacities of product pipeline. These are new pumping stations under 

construction in Ilukste as well as the realisation of some construction 

phases for a pumping station in Džukste.



During the reporting period, SIA LatRosTrans continued active operations 

aimed at elimination of excess physical losses of petroleum products in the 

result of unauthorised actions by informing and involving governmental 

bodies for the purposes of solving the issue. From the beginning of the 

reporting period, SIA LatRosTrans controls more strictly gas oil flows in 

the product pipeline by using a new gas oil metering unit which, being the 

one of the most important elements of the metering and proving system in the 

area of petroleum products transit, is equipped according to the most modern 

technologies.



During the period from January to June 2005, a/s Preses nams, the daughter 

company of a/s Ventspils nafta and the major printing group of companies in 

the Baltic, increased the volume of periodicals, books, booklets and other 

products sold. Upon the end of the reporting period, on July 18th, 2005, by 

inserting a time capsule into the foundation, a/s Preses nams launched its 

current project of future development, i.e. the construction of a new printing 

house which is expected to be the biggest and most modern in the Baltic. It is 

planned that the new printing production unit shall be put into operation in 

July 2006. It includes new up-to-date facilities for printing periodicals, 

automatically processing graphic materials as well as producing printing plate 

sizes. The appropriate production and office premises shall be in accordance 

with the requirements of European Union. It is expected that the new printing 

house would increase the volumes of production up to LVL 25 million a year; 

and bring a/s Preses nams closer to its strategic goal, i.e. strengthening 

a/s Preses nams position in the markets of EU and Eastern European countries.



A/s Ventspils nafta

For detailed information please contact –

Gundega Vārpa

Tel.371-79229793

e-mail: gundega.varpa@vnafta.lv