OREANDA-NEWS. June 2, 2008. 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 Pзtersone. 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.