Consolidated net profit of JSC Ventspils nafta Group has reached LVL 3.3
million in the first quarter of 2008 despite such external influence factors as
the considerable fall in USD Exchange rate and the high inflation level in
Latvia. Previously published consolidated net profit forecast that was approved
in the budget of JSC Ventspils nafta for the entire year 2008 is LVL 5.5
million. Consolidated net turnover of JSC Ventspils nafta Group during the
first three months of 2008 was LVL 22.25 million.
“As we previously forecasted, this year is very difficult for JSC Ventspils
nafta and its group companies due to influence of both global circumstances and
internal economic situation in Latvia,” emphasises the Chairperson of the
Management Board of JSC Ventspils nafta Olga Pētersone. From January until
March 2008, the financial results of JSC Ventspils nafta were affected by fall
in exchange rate of USD / LVL for more 12.4% in comparison with the respective
period of 2007. Several companies of the JSC Ventspils nafta Group - the
subsidiaries working in transit area Ventspils nafta terminals Ltd and
LatRosTrans Ltd, as well as the associated joint stock company Latvian Shipping
Company - receive their income in USD. This fact significantly influenced also
the consolidated turnover in the context of the fall in exchange rate. Losses
caused to JSC Ventspils nafta by exchange rate fluctuations reach LVL 4.3
million in the first quarter of the current year.
Also the constantly increasing inflation rate in Latvia continued to affect
financial results of manufacturing and services providing companies negatively
in the first quarter of 2008, thereby negatively affecting the work of JSC
Ventspils nafta Group. At the same time, it must be emphasized that JSC
Ventspils nafta has been able to ensure successful control of fixed costs -
changes in total and administration costs under the total inflation level can
be mentioned as an example.
Despite the mentioned difficulties, JSC Ventspils nafta Group companies worked
actively in January-March of 2008 to achieve the set objectives.
More than 3.8 million tons of crude oil and petroleum products were
transshipped in the first quarter of 2008 at the crude oil and petroleum
products transhipment company Ventspils nafta terminals Ltd, which is half a
million tons more than in the first quarter of 2007. This year's largest
transshipment amount at Ventspils nafta terminals Ltd was reached in March -
1.36 million tons of crude oil and petroleum products. Ventspils nafta
terminals Ltd is concurrently implementing a gradual modernization process of
the company, planning to optimize the working processes and procedures of the
terminal, as well as to increase workforce efficiency and introduce higher
requirements in the environmental protection matters.
The major printing company in the Baltic States JSC Preses nams is preparing to
finish construction works at the new book production plant near Riga soon and
has put intense work in export market research and marketing. The new printing
house means considerable investments in order to ensure future prospects for
the company - it is planned that it will be the biggest plant of such type in
the region of the Baltic States and even in Scandinavia, it will have the most
up-to-date equipment and technologies to print and process hardbound and
soft-cover books. The up-to-date and at present the most powerful printing
equipment that will operate in the plant located in three blocks is suitable
for production of practically any type of books in the highest quality,
reducing proportion of defective articles and allowing to offer utmost
advantageous prices to customers.
The owner and operator of crude oil and petroleum products pipeline in the
territory of Latvia LatRosTrans Ltd had to continue working in tense
circumstances, as Russian oil transshipment in the direction to Mažeiķi in
Lithuania by partial usage of the pipeline owned by LatRosTrans Ltd has still
not been resumed since summer of 2006.
JSC Ventspils nafta
Further information -
Gundega Vārpa, Public Relations and Advertising Manager
tel. 7229793;
e-mail: gundega.varpa@vnafta.lv
