Ventspils nafta 26.01.2007 About budget of JSC “Ventspils Nafta” for 2007 The Supervisory Board of the joint-stock company “Ventspils Nafta” agreed on the budget of JSC “Ventspils Nafta” for 2007, which provides for consolidated net turnover of the concern of LVL 52 million (at the moment not planning to show railway services rendered by the subsidiary “”Ventspils Nafta” Terminals” Ltd in net turnover) and profit after payment of taxes amounting to LVL 5 million as it was forecasted in 2006. At the moment, railway services rendered by “”Ventspils Nafta” Terminals” Ltd are not included in net turnover of the approved budget for it is difficult to determine the planned volumes taking into consideration the participation of international corporation Vitol, the new shareholder of JSC „Ventspils Nafta”, in „”Ventspils Nafta” Terminals” Ltd business guaranteeing petroleum product delivery to the terminal not only by railway, but also with tankers by the sea. In 2007, companies of JSC “Ventspils nafta” Group will continue to operate in the following main business fields: crude oil and petroleum product storage and transshipment; transport of crude oil and petroleum products by pipelines; printing; sea cargo transport; real estate management and development; publishing. In 2007, JSC „Ventspils Nafta” and its subsidiaries will keep a sustained development level operating in compliance with plans made by shareholders and reaching the goals set by them. In accordance with the aforesaid potential approaches to cooperate more closely in order to further the activities of JSC “Ventspils Nafta” Group companies involved in transit business, Vitol, whose subsidiary Euromin Holdings (Cyprus) Limited bought 34.75% of JSC “Ventspils Nafta” shares during a public sale in October 2006, has proposed an official cooperation solution to the Management Board of JSC “Ventspils Nafta” offering to guarantee proper increase in petroleum product transshipment volumes of “”Ventspils Nafta” Terminals” Ltd, a 100% subsidiary of JSC “Ventspils Nafta”, participating in direct management of this company. In the first months of 2007, Vitol together with “”Ventspils Nafta” Terminals” Ltd is going to formulate detailed proposals relating to terminal development for the next years evaluating such fields of commercial activity as handling of crude oil and petroleum product cargos delivered by railway and the sea, widening of assortment of petroleum products for transshipment according to technological facilities of the terminal, increasing the effectiveness of shore-tank farm usage, optimization of expenditures, work-out of new investment projects and their implementation plans. In 2007, “LatRosTrans” Ltd, another subsidiary of JSC “Ventspils Nafta” Group involved in transit business as well as owner and operator of crude oil and petroleum product pipelines, is planning to keep to the same diesel petrol pipage volumes as in the previous year. Managers of JSC “Ventspils Nafta” and “LatRosTrans” Ltd hope that in 2007 crude oil transport from Russia, which was stopped in August 2006, will be resumed by pipelines to the Mazeikiai Oil Refinery and the Butinge Oil Terminal in Lithuania although solution of this issue is related to the political and economic situation in neighbour countries of Latvia and therefore in no way depends on the activities of the company. In 2007, “LatRosTrans” Ltd is planning to implement several important investment projects, of which the largest one is equipping of petroleum product quantity measuring unit with the latest technologies at Oil the product accounting point Skrudaliena. In 2007 JSC “Preses Nams”, a subsidiary of JSC “Ventspils Nafta” and the largest printing concern in the Baltic States, will finish adjustments of a new strategic development programme and, after its approval, start implementation of it already this year maintaining and improving its position and competitiveness in the printing market and increasing company’s value. The most important tasks of JSC “Preses Nams” include creation of a new printing-house of newspapers and magazines and a new book production unit until the beginning of 2008. At the moment, a technical project of the production unit is being adjusted, a cause for which was not only reasonable increase of costs in construction sphere due to general inflation and the one in the particular field, but also additional requirements in this branch because of inflation, which not always were motivated. It is planned that adjustments of the technical project will finish in the nearest future. Immediately after that it is planned to start the final stage of the new production unit project of JSC “Preses Nams”. In order to reach the goals set for 2007, JSC “Preses Nams” will continue printing of newspapers, magazines, books, labels and sheet products, evaluate opportunities of providing new basic services, continue reconstruction of production equipment, optimize company’s management, production, sales organization structure, develop a new marketing strategy, etc. Main task of the holding company of JSC “Ventspils Nafta” is to increase value of the concern and each separate company furthering successful development of each business field of the concern, as well as managing effectively financial resources and, if necessary, shifting them from business fields, whose capital return is not so high, to fields with a higher capital return. JSC “Ventspils Nafta” For further information, please call Gundega Vārpa (phone number - 7229793) or e-mail to gundega.varpa@vnafta.lv