OREANDA-NEWS. On August 13, 2008 AB Mazeikiu Nafta announced that consolidated net profit of the Company for the first half of the year 2008 amounted to 280 million Litas, and the revenues of the Company reached 8.9 billion Litas. In the first half year of 2007, the Company reported losses, reported the press-centre of Mazeikiu Nafta.

Revenues in the first six months of 2008 increased more than twice compared to the relevant period of 2007 (4.03 billion Litas for the first half year of 2007). Refining volumes of the Company increased by 47 percent in comparison with the same period of the last year. Higher refining volumes had the material effect on the improved financial results despite of the unfavorable macroeconomic conditions.

 During the first half of the year, AB Mazeikiu Nafta refined 4.676 million tons of feedstock, including 4.448 million tons of crude oil (compared to 3.177 million of feedstock, including 2.504 million tons of crude oil refined during the same period of 2007).

Feedstock refined during the 2nd quarter of 2008 amounted to 2.55 million tons (including 2.46 million tons of crude), i.e. 17 percent more than in the 1st quarter of 2008 and 35 percent more than in the 2nd quarter of 2007. Revenues of the Company within the indicated period reached 5.281 billion Litas, i.e. 46 percent more if compared to the 1st quarter of 2008 (3.619 billion Litas) and 115 percent more in comparison with the same period of 2007 (2.453 billion Litas).

Capacity utilization, reaching 97 percent in the 2nd quarter of 2008 and being higher by almost 20 percent in comparison with the 1st quarter (77.9 percent) and 38 percent higher than in the 2nd quarter of 2007, had a material impact on the Company’s profitability for the first half of the year.

The biggest impact on stable operations and high refining volumes of the Company was made by the turnaround of the Refinery in 2007 and rebuild of its Vacuum Distillation Unit. The volumes refined in the 2nd quarter of 2008 were the highest after the year 2000; they exceeded, by 120 thousand tons, the volumes refined during the 2nd quarter of 2006.

Irrespective of rather unfavorable macroeconomic conditions, i.e. fall of the crack margins by more than 40 percent and unforeseen circumstances (the two-day shutdown of the refinery due to the interruption in electricity supply), operating profit of AB Mazeikiu Nafta Group (EBIT – earnings before interest and tax) for the first half of 2008 reached 328 million Litas, while losses were reported on the operating level for the first half of 2007. 

Consolidated net profit of AB Mazeikiu Nafta Group for the first half of 2008 amounts to 280.4 million Litas (based on historical values of Mazeikiu Nafta Group’s assets), net loss was reported for the first half of 2007.

Marek Mroczkowski, General Director of AB Mazeikiu Nafta, in evaluation of the Company’s performance for the first half of the year, told that irrespective of the market tendencies – unfavorable global refining margins – the financial results of Mazeikiu Nafta were good. “During the indicated period we concentrated our activities on the increase of organizational and operational efficiency. We have increased the efficiency in such areas as capacity utilization, logistics, and planning as well as execution of maintenance and investment activities. Results of such activities will have positive impact on the Company’s financial results in future,” – told the General Director of AB Mazeikiu Nafta.