OREANDA-NEWS. September 2, 2011. JSC Ventspils nafta, as a parent company’s (hereafter – Group’s parent company) net profit reached LVL 4.9 million in the first half-year of 2011. In 2011 the Group’s parent company continued implementing the strict cost cutting policy that was started in 2010 with the most substantial savings achieved in administrative expenses. In the first six months of this year administrative expenses have decreased by 100 thousand lats. JSC Ventspils nafta as a parent company has achieved that administrative expenses have decreased by half over a period of two years, saving approximately 0.5 million lats for the 6 month period vs the first half year of 2009.

Consolidated net turnover of JSC Ventspils nafta and its subsidiaries (hereafter – JSC Ventspils nafta Group) in the first half-year of 2011 has reached 35 million lats and the net profit has reached 925 thousand lats.

The turnover of the JSC Ventspils nafta subsidiary Ventspils nafta terminвls Ltd has reached 29.1 million lats in the first six months of 2011. Ventspils nafta terminals Ltd handled nearly 6 million tons of petroleum products in the first half-year of 2011, which is 24% or 1.2 million tons more than in the same period in 2010.

JSC Ventspils nafta subsidiary, owner and operator of crude oil and petroleum products pipeline in the territory of Latvia LatRosTrans Ltd has reached the operating income of 5.9 million lats in the first six months of 2011, which is 29% more than budgeted. Increase of transportation volumes in comparison with the budgeted volumes was the main reason for improvement of the economic activity results of LatRosTrans Ltd.

Petroleum product transportation volumes of LatRosTrans Ltd in the accounting period amounted to 3.25 million tons, which is 289 thousand tons (9.8%) more than in the first half-year of 2010. The actual losses of LatRosTrans Ltd in the accounting period were 1.37 million lats. The main reason of financial losses in the half-year is writing off the fixed assets that are not used in economic activity in the amount of 1.4 million lats.

In the first half-year of 2011, the JSC Ventspils nafta associated company JSC Latvian Shipping Company worked with losses in the amount of 8.75 million US dollars, which was three times less than in the same period in 2010. These losses have substantial effect on the consolidated profit of the JSC Ventspils nafta Group for the accounting period, however, positive trends are observed in operation of JSC Latvijas kugnieciba in 2011 in comparison with 2010. The gross profit of JSC Latvian Shipping Company in the first half-year of 2011 increased by 309% compared to the same period in 2010 reaching 7.02 million US dollars and was sufficient to fully cover administrative costs. These administrative costs were reduced by 34% compared to the first half-year of 2011.

JSC Ventspils nafta is the central holding company in a transit-oriented Group whose task is to manage the investments in subsidiaries by promoting the Group's joint values and growth in the value of each subsidiary individually. JSC Ventspils nafta Group is working in the following areas: transshipment of crude oil and petroleum products; transport of crude oil and petroleum products by pipelines; shipping.