Energy, Investments, Latvia, Oil, Transport

Net result for the reporting year was also affected by the 2.38 million EUR impairment of debt following changes in market value of real estate upon which this debt is secured. Dividend income from VN’s investment in Ventspils nafta terminals Ltd amounted to 6.37 million EUR.

Net interest income was 1.33 million EUR (2013: 1.19 million EUR).

Administrative costs, which fell by approximately 200 thousand EUR to 952 thousand EUR (2013: 1.15 million EUR), are fully covered by management services provided to the Group and interest income from the issued loans and placed deposits. 

In 2014, the consolidated income of the Group fell by 3%, reaching 161.97 million EUR compared with the previous year, when it was 166.73 million. Net loss decreased from 61.21 million EUR in 2013 to 13.98 million EUR in 2014 meanwhile gross profit reached 42.56 million EUR that is 2.7% more than in 2013 when profit was 41.45 million EUR. 

2014 was a challenging year for the Group. In addition to the longer term issues facing the Group as Russia looks to rebalance the export of its petroleum products to domestic ports, geopolitical tensions added further uncertainty to the near-term outlook. 

Results were impacted by the previously reported partial settlement of the Antonio Gramsi Corporation court case in the High Court of London which positively impacted financial results by 20.05 million USD as well as further impairments to the fleet, amounting to 55.25 million USD and a downwards re-evaluation of the investment in JSC Latvijas Naftas tranzīts of 8.34 million USD. The Group recognized an impairment of the crude oil infrastructure to the amount of 25.21 million EUR, following the displacement of the remaining technological crude oil from idle pipelines. The crude oil infrastructure now is fully impaired. The sale of the displaced crude oil generated one off gains in 2014 in the amount of 13.7 million EUR.