OREANDA-NEWS. May 18, 2009. During the first three months of 2009, AB Mazeikiu Nafta Group incurred LTL 2 million (USD 0.8 million) of the unaudited operating loss (EBIT) in accordance with International Financial Reporting Standards, reported the press-centre of Mazeikiu Nafta.

This loss is almost four times lower than the loss incurred during the same period last year. The revenues of Public Company Mazeikiu Nafta (the Company) for the 1st quarter of 2009 amounted to LTL 2.2 billion (USD 0.9 billion), which is by LTL 1.4 billion (USD 0.7 billion) less than in the same period of 2008.

The consolidated net loss for the first three months amounted to LTL 48.5 million (USD 18.4 million). During the same period of 2008, the loss amounted to LTL 6.6 million (USD 2.9 million). The main factors which had an impact on such result of the Company for the 1st quarter 2009 were decrease in fuel consumption due to the global crisis and low refining margins.

During the first three months of this year, Mazeikiai Refinery processed 2.2 million tons of crude oil and other feedstock, comparing to 2.1 million tons of feedstock processed in the 1st quarter of 2008. Capacity utilization – the indicator showing the operations efficiency – increased by sevenper cent in comparison with the last year’s first quarter, and reached 86 percent (calculated on the basis of annual throughput of 10 million tons).

The yield of light products, such as gasoline, jet fuel, and diesel fuel, reached almost 70 per cent, and was by 2 per cent higher than in the same period of 2008. Such operating results of the Company have been achieved despite the shutdown of process units related to modernization of the Diesel Hydrotreatment Unit. The refurbished Vacuum Distillation Unit, operated at full rate in the fist quarter this year, had a significant impact on the production volume increase.

During the 1st quarter of the year, the Company increased the sales to Western Europe and the USA. The quantity of petroleum products sold on these markets within three months amounted to 1.3 million tons. The volume of sales during the same period last year amounted to 1.1 million tons. The sales on the Baltic and Polish markets decreased from 0.84 million tons in the 1st quarter of 2008, to 0.78 million tons in the 1st quarter 2009.

In the 1st quarter 2009, the situation on the Lithuanian and closest markets was unfavorable for the Company as a result of the recession triggered by the global economy slowdown. Comparing with the 1st quarter of 2008, the GDP in Lithuania declined by 12.6 per cent. The crisis in Lithuania at the beginning of the year had a major impact on the dramatic drop of the fuel consumption: the sales of diesel fuel decreased by 25 per cent. The gasoline demand also declined, with decrease of its sales by eight per cent. The similar situation was observed in Latvia and Estonia.

AB Mazeikiu Nafta continued with reduction of operating costs, implementation of the Company’s restructuring, and optimization of the employee number seeking to spin off its non-core business activities. As part of implementation of the Company’s restructuring strategy, the subsidiary UAB “EMAS” providing electrical equipment installation and maintenance services was established.

For the purpose of ensuring stable refining operations, high quality of the products and better refining efficiency, the Company continues with the Refinery modernization. In March the Company commenced modernization of the second Diesel Hydrotreatment Unit which was completed in April as well as started the operation of the new Hydrogen Generation Unit.