According to the audited annual report, the audited net profit of JSC Ventspils nafta and its subsidiaries (hereafter – the VN Group) in 2012 was 3.87 million lats, which can be evaluated as a positive result as against the Group’s losses in 2011 (12.9 million lats). The VN Group’s audited consolidated profit in 2012 differs from the Group’s previously published unaudited profit by more than 10% (3.226 million lats), which is mostly due to changes in estimates of JSC Latvian Shipping Company (LSC) in relation to the company’s possible liabilities towards third parties.

In comparison with the last year, the VN Group’s EBITDA has increased by 73% and was 40.32 million lats in 2012 – that is the highest EBITDA of the Group in the last three years.

The VN Group’s gross profit reached 26.97 million lats, exceeding the gross profit of 2011 by 8.65 million lats. In turn revenue in 2012 was 135.7, which is 17.4 million or 14.8% more than in 2011. The VN Group’s administrative costs in 2012 were 20.38% lower compared to 2011. The net profit attributable to shareholders of the VN Group’s parent company was 4.08 million lats in 2012.

Information in the annual report shows that VN has achieved the goals set for 2012 – the VN Group has gained profit, the VN company’s administrative costs have been retained at a historically low level and the company has also shown great improvement in relations with investors – two companies of the VN Group have received Baltic Market Awards for the fastest progress in improvement of investor relations. LSC has won top position and grand prize in the category “Most Visible Improvement in Investor Relations”, in turn VN ranked second in this category.

The turnover and financial income of the Group’s parent company was 1.22 million lats and the net profit was 258 thousand lats in 2012. The VN Management Board has proposed to channel the net profit of 2012 to other reserves. In 2012 VN continued working on cost reduction. VN’s administrative costs have decreased from 1’095  thousand lats in 2011 to 907 thousand lats in 2012, or by 17.2%.

Volumes of the petroleum products transshipped by the VN Group’s company Ventspils nafta termināls reached 12 million tons in 2012; its revenue exceeded 60.4 million lats and net profit was 10.4 million lats.

Petroleum product transportation volumes of the VN Group’s company LatRosTrans reached 6.308 million tons in 2012, its revenue was 12.16 million lats and net profit was 11.82 million lats.

Consolidated income of the VN Group’s company LSC was USD 115.56 million and its net losses – USD 34.60 million. The main reason why the LSC Group has worked with substantial losses is impairment of the fleet value.

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% 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 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 of the Ventspils nafta Group

Tel.: 29267454, 67715914

E-mail: ilze.nagla@vnafta.lv