OREANDA-NEWS. May 03, 2011. The parent company JSC Ventspils nafta’s unaudited net profit was LVL 3.64 million, this is LVL 2.5 million more than in 2009. In 2010 JSC Ventspils nafta as a parent company implemented a cost cutting programme resulting in a  reduction of administrative expenses from LVL 2.45 million in 2009 to LVL 1.47 million in 2010. The management of JSC Ventspils nafta will continue working on the reduction of administrative expenses in 2011.

In 2010 JSC Ventspils nafta and its subsidiaries continued work on the improving operational efficiency of group companies, optimizing expenses and improving corporate governance. In 2010 the largest shareholder of JSC Ventspils nafta took a significant role in bringing the international experience of seasoned professionals to the Supervisory Councils of the parent company and its holdings.

The unaudited consolidated turnover of the JSC Ventspils nafta Group in 2010 was LVL 53 million and unaudited net loss was LVL 25.27 million.

The Group in 2010 faced an increase of 13% in reloading revenue, a 52% increase in pipeline revenues and a reduction of 56% in railway revenues. This favourable change in mix, combined with the continuing restructuring programme lead to a 133% increase in gross profits.

The audited turnover of Ventspils nafta terminвls Ltd was LVL 43.4 million in 2010, which is 27% less than in 2009; the audited net profit in 2010 was LVL 9.67 million, an increase of 46% over 2009. During 2010 Ventspils nafta terminals Ltd continued the implementation of various modernisation programmes, optimisation of operating processes and procedures, increasing labour efficiency and the introduction of improved environmental protection standards. In the last year Ventspils nafta terminals Ltd implemented an investment project worth LVL 1 million, allowing the company to produce a new and competitive product – butanized gasoline.

The audited turnover of LatRosTrans Ltd increased by 52% to LVL 9.9 million compared to LVL 6.5 million in 2009. Transportation volumes increased by 49% to 5.635 million tonnes.  The audited net losses of LatRosTrans Ltd were LVL 1.619 million, this is a 74% improvement over 2009 when losses were LVL 6.132 million.

In January 2010, due to dissatisfaction with the performance of the management of JSC Latvian Shipping Company, JSC Ventspils nafta requested that the Management Board and Supervisory Council of JSC Latvian Shipping Company convene an extraordinary shareholders’ meeting in order to changes the Supervisory Council. The JSC Latvian Shipping Company Management Board and Supervisory Council failed to convene any shareholders’ meetings until December 17.  At the December 17 meeting a new Supervisory Council was elected, the Council then appointed a new Management Board. Moreover, the previous management of JSC Latvian Shipping Company has concluded several transactions which the current management is investigating, endeavouring to mitigate and reverse.

JSC Ventspils nafta together with audited consolidated financial statements for 2010, is publishing Ventspils nafta Group audited financial statement for 2009. Such delay was caused due to the fact that the audited consolidated financial statements of Ventspils nafta associated company JSC Latvian Shipping Company for 2009 were approved by an extraordinary shareholders’ meeting of the JSC Latvian Shipping Company only on January 28, 2011. The audited consolidated net losses of JSC Latvian Shipping Company for 2009 were USD 90.3 million or LVL 45.6. Taking these losses into account the audited consolidated losses of the JSC Ventspils nafta Group for 2009 were LVL 17.54 million, while the audited net assets of the JSC Ventspils nafta Group were LVL 361 million.