RIGA, LATVIA, 2011-12-08 10:30 CET (GLOBE NEWSWIRE) -- Total revenue of the JSC Ventspils nafta (NASDAQ OMX RIGA: VNF1R) Group in 9M2011 increased by 23% to LVL 49,8 million compared with 9M2010. The main increase was because of doubling of income from railway services; at the same time, the decrease in revenue for 2010 compared to 2009 was caused by a halving of railway income. These changes are related solely to the decision of Ventspils nafta termināls’s (VNT) client to deliver petroleum products by railway, pipeline or sea.
Gross profit declined by 15% over the same period due to the decrease in reloading revenue. It must be noted that, despite this decrease, gross profit for 9M2011 exceeds the gross profit of the entire year 2009 by nearly 8%.
Net income (pre-exceptionals) of Ventspils nafta (VN) is still affected by the negative net results of Latvian Shipping Company (NASDAQ OMX RIGA: LSC1R). As soon as Latvian Shipping Company (LSC) starts operating with a positive result, the VN Group’s performance will substantially improve. Evidently, the VN Group had losses in 2009 and 2010 as well, and they occurred mostly due to the losses of LSC, which together over the two years affected results of the VN Group by about LVL 52 million.
During the last years a positive fact has been substantial reduction of administrative expenditure of VN as a holding company. The administrative expenditure of the holding company in 2010 has decreased by 46% from 2009, from LVL 2.4 million to LVL 1.3 million. In turn the administrative costs for 9M 2011 are less than LVL 700 thousand, which means that the year will end with the holding company’s administrative expenditure under LVL 1 million.
Ilze Nagla
Public Relations Manager
JSC “Ventspils nafta”
Phone: 29267454, 67715914
E-mail: ilze.nagla@vnafta.lv
www.vnafta.lv, www.vnt.lv