Core performance results of the VN Group show positive trends

In the Business Performance Presentation of the Ventspils nafta Group, the Chairman of the Management Board of JSC Ventspils nafta (VN) Robert Kirkup noted that positive trends have been observed in the company's core performance results - gross profit results have increased and administration costs have continued to decrease.

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| Source: Ventspils nafta
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Robert Kirkup indicated that, despite the decrease in net turnover in all three first quarters of 2013, compared to 2012, gross profit indicators of VN have increased and administration costs also have continued to reduce. The Group’s gross profit in the first nine months of 2013 has reached 21.82 million lats, which is 13.1% more than in the first nine months of 2012 (19.3 million lats). Meanwhile, the Group’s general and administration costs amounted to 5.56 million lats or 20.2% less than in 2012 (6.96 million lats).

“This year the VN Group has been recognized as the fourth most valuable company in Latvia, with turnover of 136 million lats and more than 6 million lats paid in taxes in 2012. At the same time, it should be noted that 99% of the income comes from foreign clients, but more than 90% of the expenditure of the Ventspils nafta Group’s companies – Ventspils nafta terminals and LatRosTrans are directed to local service providers. Thus the VN Group’s overall contribution to Latvian economy is significant,” stressed Robert Kirkup.   

While, speaking about VN’s future prospects, the main challenges of the VN Group emphasised by Robert Kirkup were: re-evaluation of the Group’s assets, study of the oil pipeline Pollock-Ventspils regarding the possibility to use it for transportation of other products, resolving of the LatRosTrans land issue. Strategic performance principles of the Group’s business will also remain unchanged: transparency and client-oriented services.

At the same time, it should be pointed out that net result of the holding in the first nine months of 2013 were negative – mainly due to the created accruals of 12.78 million lats for impairment of the fleet, as well losses of 2.9 million lats from sale of the ship “Kaltene”. Thus, consolidated net losses of the Group reached 5.4 million lats (in 2012 the Group’s net losses were 9.85 million lats).

“It should be emphasised that without the accruals for the fleet’s impairment and the losses from sale of the ship “Kaltene”, the Group’s profit in the first nine months of this year would have reached 10.28 million lats,” stresses Robert Kirkup.

About JSC Ventspils nafta

JSC Ventspils nafta is one of the largest groups of companies in Latvia and works in the petroleum product transport, transhipment and storage, as well as shipping sector. JSC Ventspils nafta is the Group’s parent company, which manages investments in subsidiary companies, by promoting the Group’s joint values and growth in value of each individual company.

JSC Ventspils nafta owns 51% in Ventspils nafta termināls Ltd, which is the largest crude oil and petroleum product terminal in the Baltics; 66% in LatRosTrans Ltd, which is the largest Latvian-Russian joint venture in the Baltics; 49.94% in JSC Latvijas kuģniecība, which is among the leading ship owners in the world in the medium-sized and handy tankers category

Shares of JSC Ventspils nafta (NASDAQ OMX RIGA: VNF1R) are quoted in the Baltic Official List of the stock exchange NASDAQ OMX Riga since October 20, 1998.

         Elīna Dobulāne, Communications Consultant
         JSC Ventspils nafta
         Phone: +371-25959447
         Email: elina.dobulane@vnafta.lv
         www.vnafta.lv