Energy, Latvia, Transport

In 2010 the Ventspils nafta parent company implemented a strict cost-cutting policy with the most substantial savings achieved in administrative expenses, which decreased from LVL 1.0 million in the first half of 2009 to LVL 0.6 million in the corresponding period in 2010.

The concern's subsidiary companies Ventspils naftas terminals and LatRosTrans showed successful economic activity, while the associated company Latvian Shipping Company operated with losses, informs LETA.

In the reporting period, the management of Ventspils nafta significantly changed. On July 7, 2010, a new Supervisory Council of was elected for a period of three years. Since the beginning of the year, the members of the company's management board have also changed. During the first half-year, one of the company's largest shareholders Euromin Holdings (Cyprus) Limited increased its shareholding by more than 1.5%, thus becoming the owner of a 49.5% stake and thereby the largest shareholder in Ventspils nafta.

In the reporting period, the price of shares in Ventspils nafta ranged from LVL 0.91 to LVL 1.80, with the average price per share reaching LVL 1.17.

The Ventspils nafta subsidiary Ventspils nafta terminals Ltd recorded an income of LVL 24.2 million in the first six months of 2010. The transshipment volume of crude oil and petroleum products was 4.8 million tons. The throughput of products delivered by sea was 72 thousand tons and by pipeline – 964 thousand tons more than budgeted. Ventspils nafta terminals Ltd is one of the largest such companies in the region, and its crude oil and petroleum product shore-tank farm has a capacity of 1.2 million cubic meters.

Ventspils nafta subsidiary LatRosTrans Ltd, the owner and operator of crude oil and petroleum product pipelines on the territory of Latvia, had an income of LVL 5.2 million in the first six months of 2010, which is 28.2% more than in the corresponding period in 2009. Petroleum product transportation volumes of LatRosTrans Ltd on the territory of Latvia in the reporting period amounted to 2,963 thousand tons, which is 580 thousand tons (24.3%) more than in the respective period in 2009.

In the first half-year of 2010, the Ventspils nafta associated company Latvian Shipping Company worked with losses in the amount of USD 25.2 million (LVL 13 million).

The management of Latvian Shipping Company stressed that the companies of the Ventspils nafta Group have to deal with hard and difficult work following the end of the reporting period in order to guarantee further stable operations in the future and ensure that the interests of all shareholders are observed.