Consolidated net profit of the public joint stock company Ventspils nafta Group has reached 3.05 million lats in the first quarter of 2009 with the Group's consolidated net turnover of 20.5 million lats in the first three months. In the light of the processes in global economy that are closely related to work of JSC Ventspils nafta Group companies in circumstances of international competition, these results attest that JSC Ventspils nafta Group is able to flexibly and effectively react to the topical changes in market situation. Previously published consolidated net profit forecast of JSC Ventspils nafta for the entire year 2009 is at least 2 million lats. “The events in global and Latvian economy have substantially affected activity of JSC Ventspils nafta Group companies that in the transit business sector, as they were directly affected by consequences of global processes and politically economic decisions made in Latvia in the level of local business activity. This year has been very complicated, yet the JSC Ventspils nafta Group companies have been able to adjust to the operative interests of their customers and to ensure stable operating results,” emphasizes the Chairperson of the Management Board for JSC Ventspils nafta Olga Pētersone. Although financial market fluctuations in global market have decreased in the first quarter of 2009 and increase of US dollar exchange rate has had a positive impact on the financial result of the first quarter, the Management Board for JSC Ventspils nafta has used conservative approach and formed provisions of LVL 4 million for possible financial market fluctuations during the remainder the year, reflecting exchange market risk that has had a negative effect on financial results of JSC Ventspils nafta Group in the previous periods. JSC Ventspils nafta subsidiary crude oil and petroleum products transshipment company Ventspils nafta termināls Ltd has ensured a stable level crude oil and petroleum products transshipment volumes in the first quarter of 2009, which is the same to the transshipment volume reached by the terminal in the first three months of 2008. In the period from January until March 2009, 3.8 million tons of crude oil and petroleum products were transshipped by Ventspils nafta termināls Ltd. In 2009, Ventspils nafta termināls Ltd is working in circumstances of intense competition and global financial and economic crisis, at the same time continuing implementation of the company's modernization projects in order to strengthen positions of Ventspils nafta termināls Ltd as the largest crude oil and petroleum products transshipment complex in the Baltic region. Among the most significant projects of Ventspils nafta termināls Ltd for improvement of infrastructure to ensure maximally effective operation of the company in the coming years is also construction of the pipeline corridor from the company's territory to the jetties in the Ventspils port where loading into tankers is carried out - the planned investments into this project could be about 3.7 million lats. In the first three months of 2009, stable work has been done also by JSC Ventspils nafta subsidiary LatRosTrans Ltd - owner and operator of main crude oil and petroleum products pipelines in the territory of Latvia. This company has transported more than 1.5 million tons of diesel fuel and has thereby exceeded its own forecasts for the first quarter of this year. Whereas the public joint stock company Latvian Shipping Company - the associated company of JSC Ventspils nafta - has managed to gain net profit of 7.6 million US dollars in the first quarter of 2009 as a result of effective optimization of expenditure, despite the fact that activity of the company has been considerably affected by such external factors such as the low market activity and the dramatic decline of freight rates in the shipping market. The rapid global recession along with intensive delivery of new vessel tonnage in the market caused considerable reduction of the demand for tanker tonnage. Negative tendencies could be observed in the tanker shipping markets already in June last year and have prevailed also in 2009. As a result of unfavorable external circumstances, income of JSC Latvian Shipping Company in the first quarter of 2009 from activity of tanker fleet was lower in comparison with the same period in the previous year. In the intense economic circumstances, JSC Ventspils nafta will also further work with a view to ensure accomplishment of goals set by shareholders and implementation of the strategic development programs of Group companies. Joint Stock Company Ventspils nafta is the central holding company in a transit-oriented Group whose task is to manage the investments in subsidiaries by promoting the Group's joint values and growth in the value of each subsidiary individually. JSC Ventspils nafta Group is working in the following areas: transshipment of crude oil and petroleum products; transport of crude oil and petroleum products by pipelines; shipping. JSC Ventspils nafta For further information - Gundega Vārpa, Public Relations and Advertising Manager, tel.: +371 67229182; e-mail: gundega.varpa@vnafta.lv www.vnafta.lv www.vnt.lv www.latrostrans.lv