OREANDA-NEWS. April 16, 2008. According to the audited consolidated report of JSC Ventspils nafta Group for 2007, consolidated net profit of the public holding JSC Ventspils nafta has reached 49.6 million lats. Net turnover of the JSC Ventspils nafta Group has exceeded 82 million lats in 2007, which is 12 million lats more than in 2006.

Despite the difficult situation at certain operation segments of the Group, especially oil transport via pipeline in the direction of both Latvia and during the last two years – also Lithuania, the financial results of JSC Ventspils nafta were positively influenced last year by execution of the direct functions of JSC Ventspils nafta as the central holding company of the Group: investment administration and investment planning, which have resulted in the successful transaction of foreign investments involvement – a part of Ventspils nafta terminals Ltd was purchased by the international Vitol Group. At the same time, the increase by 48% of consolidated gross profit of JSC Ventspils nafta shows that economic activity of the Group companies continues to increase in 2007.

“Year 2007 was like a transition period showing that, regardless of considerable scale of activity, the management and employees of JSC Ventspils nafta can commence and implement dynamic changes in order to ensure successful work of the company in long-term,” the Chairperson of the Supervisory Council of JSC Ventspils nafta Vladimirs Solomatins points out.

The Chairperson of the Management Board of JSC Ventspils nafta Olga Pзtersone also draws attention to changes in the development of the Group: „The year 2007 can be partuculary characterized by continuity of the positive changes related to involvement of the co-owner of JSC Ventspils nafta – international oil and gas transport consortium Vitol Group in the management and development of the holding compay since public auction organized by Latvian government in autumn 2006 of the state-owned shares of JSC Ventspils nafta.” For JSC Ventspils nafta Group, last year has resulted in a year of changes aimed to the future with development areas of JSC Ventspils nafta being defined, presence of seasoned invesnational professionals ensured at the management bodies of JSC Ventspils nafta, and the transit arm of the holding obtaining a new spirit, O.Pзtersone points out.

Financial results of JSC Ventspils nafta Group were favourably influenced last year by the activities in the transit area of the Group when a new co-owner joined, and good results of the associated company JSC Latvian Shipping Company, as well as the stable results of other Group companies reaching set budgets.

In April 2007, Euromin Holdings (Cyprus) Limited, which is a company of Vitol Group, announced about increasing its influence at JSC Ventspils nafta to 47.89% thereby becoming the major and strategic investor of JSC Ventspils nafta. In line with previously publicly announced strategy, the major shareholder of JSC Ventspils nafta actively participated in the management and development of the transit area of the Group hence most significant events of JSC Ventspils nafta in 2007 are related to development in this business field.

On February 21, 2007, the Competition Council of the Republic of Latvia announced that there are no obstacles for Euromin Holdings (Cyprus) Limited and JSC Ventspils nafta to obtain controlling interest in the JSC Ventspils nafta subsidiary – crude oil and petroleum product transshipment company Ventspils nafta terminals Ltd. Taking into account the aforementioned resolution, Euromin Holdings (Cyprus) Limited purchased 49% of Ventspils nafta terminals Ltd shares. After conclusion of this transaction, JSC Ventspils nafta continued to hold controlling interest the terminal. As a result of strategic cooperation between the major crude oil and petroleum products transshipment terminal in the Baltic region and globally influential oil and gas sector company Vitol regionally significant joint venture is established.

The transaction between JSC Ventspils nafta and Euromin Holdings (Cyprus) Limited provides that 90 million USA dollars are paid for 49% of Ventspils nafta terminals Ltd shares. Vitol GroupVentspils nafta terminals Ltd is ensured, income flow and workplaces are guaranteed in long term, thereby enabling the company to implement its development and modernization plans. In accordance with the agreement between VitolVentspils nafta on financing the transaction, the payment will be executed maximum within ten years, aligning this transaction with Vitol undertaking to guarantee amount of cargos at Ventspils nafta terminals Ltd and to retain the role of significant investor at JSC Ventspils nafta holding company.