OREANDA-NEWS. March 01, 2011. Unaudited consolidated net turnover of the JSC Ventspils nafta Group in 2010 reached LVL 53 million. JSC Ventspils nafta as a parent company’s unaudited net profit was LVL 6.56 million which was LVL 5.4 million more than the net profit in 2009. In 2010 JSC Ventspils nafta implemented a strict cost cutting policy with the most substantial savings achieved in administrative expenses, which decreased from LVL 2.45 million in 2009 to LVL 1.25 million in 2010, a reduction of almost 50%.

In the accounting year, the management of JSC Ventspils nafta changed. On January 20, 2010, and July 7, 2010 the Supervisory Council of JSC Ventspils nafta was re-elected. Since the beginning of the year members of JSC Ventspils nafta management board have also changed.

In 2010 one of the largest JSC Ventspils nafta shareholders, Euromin Holdings (Cyprus) Limited, increased its shareholdings in JSC Ventspils nafta by more than 1.5%, thus owning 49.5% of shares in JSC Ventspils nafta and becoming the largest shareholder of JSC Ventspils nafta.

In the accounting year, the price of JSC Ventspils nafta shares on NASDAQ OMX has ranged from LVL 0.91 to LVL 1.89, with the average price per share reaching LVL 1.34. Market capitalization of JSC Ventspils nafta shares at the end of 2010 was LVL 146.27 million in comparison with LVL 98.21 million at the end of 2009.

Turnover of the JSC Ventspils nafta subsidiary Ventspils nafta terminвls Ltd reached LVL 43.4 million in 2010, which was 27% less than in 2009. In turn the unaudited net profit in 2010 reached LVL 9.67 million, or 46% more than in 2009 when the net profit of Ventspils nafta terminвls Ltd was LVL 6.6 million. Ventspils nafta terminвls Ltd is the largest terminal company in the region, and its crude oil and petroleum products shore-tank farm has capacity of 1.2 million cubic metres .

Income from the activity of JSC Ventspils nafta subsidiary LatRosTrans Ltd, owner and operator of crude oil and petroleum products pipeline in the territory of Latvia, was LVL 9.9 million in 2010, 52% more than in 2009. Petroleum products transportation volumes of LatRosTrans Ltd in the accounting period reached 5.6 million tons, which is 13% more than plan, and 49% more than the previous accounting year when petroleum products transportation volumes reached 3.8 million tons. Increase in transportation volumes in comparison with the previous accounting years was the main reason that improved the economic results of LatRosTrans Ltd.

There was a substantial dispute with the associated company JSC Latvian Shipping Company in 2010. Already in January of 2010 JSC Ventspils nafta requested the Management Board and Supervisory Council of JSC Latvian Shipping Company to convene an extraordinary shareholders’ meeting in order to decide on changes in the Supervisory Council. The JSC Latvian Shipping Company Management Board and Supervisory Council avoided convening and holding an extraordinary shareholders’ meeting throughout 2010, thus denying JSC Ventspils nafta and other shareholders their legal rights to participate in the management of the company. Moreover, the management of JSC Latvian Shipping Company has concluded several valueless economic transactions in 2010, and as a result the JSC Latvian Shipping Company Group ended 2010 with huge losses. The unaudited losses of the JSC Ventspils nafta associate JSC Latvian Shipping Company in 2010 were 123.9 million US dollars.

The extraordinary shareholders’ meeting of JSC Latvian Shipping Company finally took place on December 17, 2010, and a new Supervisory Council and Management Board of JSC Latvian Shipping Company was elected.

VN management emphasizes that the combination of the difficult and uncertain global financial position, combined with challenging local trading conditions in Latvia mean that all parts of the JSC Ventspils nafta Group will have to focus on all aspects of their business activity in order to guarantee stable operations and deliver excellent financial performance in the future.