JSC Ventspils nafta Group has succeeded in ensuring stable financial results by working under influence of sharp fluctuations in the global economy and the negative economic processes in Latvia that generally still posed unfavourable impact on the whole activity of the JSC Ventspils nafta Group.

A considerable part of the consolidated turnover is formed by USD income, which is the case with the companies of transit area – the crude oil and petroleum products transshipment company Ventspils nafta terminčls Ltd and the owner and operator of crude oil and petroleum products pipeline in the territory of Latvia LatRosTrans Ltd. This part of revenue was heavily influenced in the nine months of 2008 by the fall in USD/LVL currency exchange rate by 12% in comparison with the respective period in 2007 when the net turnover of the JSC Ventspils nafta Group was 7% higher. Whereas the difference in net profit as against the respective period in 2007 is determined in the nine months of this year by the large-scale transaction implemented last year when the international co-owner Vitol Group was involved in the JSC Ventspils nafta subsidiary Ventspils nafta terminčls Ltd. This transaction made a positive effect also on the Group’s financial results of the last year’s nine months.

“The budget execution results of JSC Ventspils nafta in the nine months of 2008 correspond with the market situation where all the companies of the Group have controlled their expenses within the budget level and are taking the necessary actions to ensure revenue increase. At the same time, the previous forecasts should again be emphasized – of course, this year is very complicated for all the companies of the Group, as they have been affected in one or another way in their areas by different aspects of the global crisis,” emphasizes BC the Chairperson of the Management Board for JSC Ventspils nafta Olga Pč“tersone.

In the nine months of 2008, Ventspils nafta terminčls Ltd continued showing stable development tendencies, as it transhipped more than 9 million tons of crude oil and petroleum products and thereby ensured 46.1% of the total volume of all cargos transhipped in the Ventspils port. Ventspils nafta terminčls Ltd has been able to reach such results although its transshipment volumes in these months were influenced by the repair works of the main petroleum products pipeline Polotsk-Ventspils in Belarus, as well as by fluctuations in the market situation and the global economy processes. The mentioned circumstances posed negative effect also on the work of the crude oil and petroleum products transport company LatRosTrans Ltd in this period.

The new-built book production plant Jčņsili of the JSC Ventspils nafta subsidiary JSC Preses nams – the major printing group in the Baltic States – was officially opened in August 2008. Thirteen and a half million LVL were invested in the new plant. With the new book production plant, JSC Preses nams has strengthened its leader positions in the area of production of high-quality books in the Baltic countries and Northern Europe, becoming one of 300 largest book producers in the world. The capacity of the new plant will make it possible to double the printing volumes in nearest years: from 250,000 – 350,000 books to as much as 500,000 -700,000 books per month.

Whereas the financially economic activity of the associated public company of joint stock company Ventspils nafta JSC Latvijas kuč£niecība in January-September of 2008 even exceeds the previously approved budget forecasts.

JSC Ventspils nafta is the central holding company in a diverse industrial group whose task is to manage the investments of several subsidiary companies by promoting the group’s joint values and the growth in the value of each subsidiary company. The Ventspils nafta Group is working in the following directions: transshipment of crude oil and petroleum products; transport of crude oil and petroleum products by pipelines; real estate management; printing, and publishing; navigation.