In times of unstable and inconsistent global economy and economic crisis in
Latvia, JSC Ventspils nafta (VN) as the parent company has gained net profit of
1.145 million lats in 2009. Due to JSC Latvijas Kuģniecība (LK) not providing
their audited annual reports, VN is forced to publish their stand alone
financial report for 2009 without LK data. Year 2010 has brought significant
changes in the Supervisory Council and Management Board and also further
developed business focused management.
In the course of 2010, the Management Board of JSC Ventspils nafta has faced
continuous avoidance of the Management Board and Supervisory Council of the
associated company JSC Latvijas kuģniecība to fulfill their legal obligations
and convene a shareholders' meeting, which is completely unacceptable for a
public joint stock company that is included in regulated market. The actions of
the Management Board and Supervisory Council of JSC Latvijas kuģniecība have
resulted in JSC Latvijas kuģniecība not preparing the annual reports for 2009,
thus hindering JSC Ventspils nafta to prepare the consolidated annual report of
JSC Ventspils nafta for 2009 in due course. Also as a result of the
aforementioned actions of the Management Board and Supervisory Council of JSC
Latvijas kuģniecība, JSC Ventspils nafta cannot duly assess its investment into
JSC Latvijas kuģniecība. Considering that JSC Ventspils nafta is concerned that
the situation with the annual reports of JSC Latvijas kuģniecība for 2009 might
go on, JSC Ventspils nafta has prepared this annual report for 2009 in
accordance with the Law on Annual Accounts of the Republic of Latvia.
One of the unexpected circumstances for the management of JSC Ventspils nafta
in 2010 is the out-of-court legal protection process initiated in October 2010
for LASCO Investment Ltd, which is one of the largest debtors of JSC Ventspils
nafta and is entirely owed by JSC Latvijas kuģniecība. Taking into account real
estate properties and shares of companies holding the real estate properties
are pledged to secure repayment of the loan, JSC Ventspils nafta cannot
evaluate the possibility of retrieving the debt at the moment because JSC
Ventspils nafta has no information on terms and conditions of out-of-court
legal protections process of LASCO Investment Ltd. The possibility of debt's
retrieving is related also to value of the real estate properties and shares of
companies holding the real estate properties, which is affected by equitable
conditions not controlled by JSC Ventspils nafta, for example, improvement of
the macroeconomic situation in Latvia, inflow of investments into the Latvian
real estate market and resumption of activities in the Latvian real estate
market.
JSC Ventspils nafta continues working on ensuring high liquidity and low debt
load, by accordingly continuing to implement a strategy that will minimise all
risks while providing an adequate return to shareholders in the medium term.
The new management of JSC Ventspils nafta has also worked on improvement of
corporate governance at JSC Ventspils nafta, so that the company's management
would meet the common standards of international practice.
Ventspils nafta
Zane Bojāre
JSC „Ventspils nafta” PR Manager
E-mail: zane.bojare@vnafta.lv
Phone.: 67821691; 29706733
