While speaking at the company’s Business Update Simon Boddy, CEO of holding company JSC Ventspils nafta (VN) emphasised the recent three core achievements of the VN Group – achieving stable, profitable and improving business; changed business practices of the company marking a tremendous increase in transparency over the last two years and becoming a great contributor to the Latvian economy.

VN Group consists of a parent company Ventspils nafta and three daughter companies - LatRosTrans (LRT), Ventspils nafta terminals (VNT) and Latvian Shipping Company (LSC). According to NASDAQ OMX Riga, the total capitalisation of VN and LSC comprises 33% of Latvian stock market (Riga list). VN has more than 23 000 shareholders. 

“Our Group has recently been named as the 7th most valuable company in Latvia by a business magazine. That is flattering of course and our financial results are improving year by year to substantiate it”, emphasised Simon Boddy.

The financial results of 9 months of 2012 show that VN Group’s revenues have increased by 22% reaching LVL 104.4 million. The forecast for the whole year demonstrates an upward trend of constantly and steadily growing revenue reaching LVL 131.5 million in the end of 2012 – that will be an 11% increase over last year (LVL 118.2 million).

EBITDA (earnings before interest, taxes, depreciation and amortisation) of the VN Group for the first 9 months of this year is LVL 27.6 million as compared to 9 months of 2011 when it was LVL 21.2 million. Also the forecast of EBITDA for the whole of 2012 shows considerable growth of 50% reaching LVL 37.8 million at the end of this year.

The net income of the VN Group – excluding exceptionals such as impairment of the fleet – also shows a considerable improvement. In 9 months of 2011 it was negative (LVL -2.5 million) while this year net income (pre-exceptionals) is finally positive amounting to  LVL 4.4 million for the first 9 months. „This is due to LRT and VNT which have greatly improved their operational profit and thus compensated for the losses made by Latvian Shipping”, explained Simon Boddy.

“I am very glad that the VN Group has become a significant contributor to the Latvian economy – last year we have paid overall taxes of LVL 6.5 million. 99% of our income derives from overseas – we are a big exporter but even better news is that 95% of VNT and LRT expenses go to 3rd party local suppliers and service providers. That makes us a significant contributor to the Latvian economy”, stressed Simon Boddy.

While discussing contribution to the Latvian economy Boddy mentioned “VN is also a silver sponsor of educational programme Mission Possible because we believe in the importance of education in helping to make this country a better and more attractive place to live and work.”

Speaking on the future prospects of the VN Group Mr Boddy stressed that „there are exciting potential new opportunities for the old crude pipeline owned by LatRosTrans – including, we hope, turning it into  a gas pipeline. But this still remains to be tested technically.”

CEO of the VN Group indicated a crucial item which LatRosTrans is facing – the legal status of LVL 49 million worth of permanent land use rights which Latvia contributed to the capital of LRT in 1994. He admitted that “if the Ministry of Finance decides that such contribution was not made, it may raise very serious questions from other shareholders”. 

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, storage and 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.
Joint stock company Ventspils nafta owns 51% of Ventspils nafta termināls Ltd, which is the largest crude oil and petroleum product terminal in the Baltics; 66% of LatRosTrans Ltd, which is the largest Latvian-Russian joint venture in the Baltics; 49.94% of JSC Latvijas kuģniecība, which is among the largest 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.

Ilze Nagla
Public Relations Manager
JSC Ventspils nafta
Tel.: 29267454, 67715914
E-mail: ilze.nagla@vnafta.lv