JSC Ventspils nafta 9-month profit - almost seven times bigger than a year ago

Net profit of JSC Ventspils nafta Group for 9 months of 2007 amounted to 35.3
million Latvian lats, which is by 30 million lats, or 6.7 times more than in
the respective period last year. Consolidated net turnover of JSC Ventspils
nafta Group for 9 months of 2007 was 62.8 million Latvian lats, or by 19.6%
more than in the respective period of 2006. 

Financial results of JSC Ventspils nafta are good although in parallel with the
group's successful development trends they were adversely affected by exchange
rate fluctuations during the reporting period. Improvement of financial results
of JSC Ventspils nafta Group reflects both successful operation of the holding
company's subsidiaries, in particular Ventspils nafta termināls Ltd, during the
nine months of 2007, and the profit JSC Ventspils nafta made when selling 49%
of Ventspils nafta termināls Ltd shares to Euromin Holdings (Cyprus) Limited, a
daughter company of the international oil and gas trading consortium Vitol. 

“Nine-month financial results of JSC Ventspils nafta demonstrate the holding
company's major events during the period. They are interrelated and complement
each other simultaneously raising value of the whole JSC Ventspils nafta Group.
The excellent performance of Ventspils nafta termināls Ltd would not be
imaginable without Vitol's international involvement in activities of the
terminal and attraction of new cargos,” points out Olga Pētersone, the
chairperson of the Management Board for JSC Ventspils nafta. 

The major events of JSC Ventspils nafta Group in 2007 are related to transit
arm development processes, and have marked beginning of a new stage in
development of the company with increased activity from the strategic investor
of JSC Ventspils nafta and its direct involvement in development of transit arm
of the holding company. As reported before, in autumn of 2006, the portfolio of
JSC Ventspils nafta shares previously owned by the Latvian state was sold at
the RSE during a public auction organized by the Latvian state, and Euromin
Holdings (Cyprus) Limited, a company of the international oil and gas transport
consortium Vitol Group, acquired a 34.75% stake. In April 2007, Vitol informed
about increasing its stake in JSC Ventspils nafta to 47.89%. Thus participation
of international high-level professionals in administrative bodies of JSC
Ventspils nafta was ensured enhancing long-term prospects of JSC Ventspils
nafta and guaranteeing effective company management. 

Since the beginning of 2007 volume of transshipments at Ventspils nafta
termināls Ltd has regularly increased in comparison with a respective period of
the last year. In nine months it already reached 10.1 million tons of crude oil
and petroleum products, which is by 6.2 million tons more than in
January-September 2006. Volume has a tendency to increase also after the end of
the nine-month period. Crude oil and petroleum products cargos are transported
to the terminal by rail, sea and via diesel pipeline. 

During nine months this year Ventspils nafta termināls Ltd was mainly
transshipping diesel fuel (7.2 million tons) delivered by rail and via
petroleum products pipeline. In nine months of 2007 transshipment volume of
gasoline of various grades transported by rail reached 1.4 million tons, and
1.4 million tons of crude oil and petroleum products delivered by sea were
handled, as well. Crude oil (0.8 million tons) accounted for the highest
proportion of sea cargos. 

After the end of the reporting period, another subsidiary of JSC Ventspils
nafta, the largest printing concern in the Baltics JSC Preses nams, has faced
important events, and at the moment concrete deadlines for construction works
of the new production units (magazine, newspaper and book plants) have been
set. According to the plan, the modernized book production unit of JSC Preses
nams printing group located at Jāņsili, Silakrogs, Ropaži parish will open
already in the summer of 2008, while the new magazine and newspaper plant
within the technological park of the international airport Rīga is starting to
operate at the end of 2008. 

At the moment, however, JSC Preses nams is working hard adopting the latest
technical and technological solutions for fulfillment of customer orders
subject to requirements of today allowing to boost production efficiency and
cut costs thus providing highly advantageous services to its customers. Since
the autumn this year, several most up-to-date book printing machines are being
used at JSC Preses nams facilities, such as machines for extremely precise
hardback cardboard bookbinding and improved binding, as well as sheet-fed
offset printing. 

Since November 2007, the company is implementing its development plans and
reaching long-term goals established by the shareholders under the leadership
of Imants Kaņeps, the new president and long-term employee of JSC Preses nams.
The main task of the new manager of JSC Preses nams for the nearest future is
placement of printing facilities at the new plants outside the centre of Riga,
optimizing production process and continuing to develop JSC Preses nams to make
it the major printing group in the Baltic States. According to the Latvian
Association of Printing and Publishing Companies, JSC Preses nams is the major
printing company in Latvia and the Baltics. 

During the reporting period, all companies within the concern have worked
towards the goals established by shareholders of JSC Ventspils nafta. 



JSC Ventspils nafta 
For further information, 
please contact Gundega Vārpa (PR and advertising manager),
tel. 7715912,
e-mail: gundega.varpa@vnafta.lv