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Higher place, higher price

By Olga Smirnova

In good tradition, the BC offers its readers a list of the top Baltic companies, split into industry sectors. For groundwork, we took Estonia's Kaibe top 500, Latvia's top 300, published by the Dienas Bizness daily, and Lithuania's Verslo Zinios, and included companies with a turnover in excess of 30 million US dollars. The result is slightly more than a hundred top Baltic companies, and just as before, her majesty trade and attendant transit lead the Baltic market. Lithuania's oil group Mazeikiu Nafta remains the largest company in the Baltics

If we compare the figures of 1998 - the year of the Russian recession - with those of 2000, it seems obvious that everything has changed, but this may not always be for the best. Some enterprises have fallen out of the boat; others have not only found themselves among the elite, but have managed to squeeze out previous leaders. Lithuania's Achema appeared on the stage of the least represented industry - the chemical industry - and immediately took first place. A newcomer on the list for food-processing, Kraft Food Lietuva has taken second place in the sector.

Preference is still given to companies dealing in trade. It appears that the most "trading" country is Estonia: 10 out of 21 companies in our list of the biggest are from Estonia. Fifteen companies share our second list with companies in the oil industry, while 15 also represent the transport branch. Comparing this year's top with the BC review in 1998, another newcomer for sectors is the medicaments and health service list.

As Lithuania and Estonia do not provide such information, there are no financial establishments mentioned in our lists, nevertheless, the Latvian top 300 does include three commercial banks and the Bank of Latvia with a turnover of over 30 million US dollars each.

The following tables include companies with net turnover in excess of 30 million US dollars, using average exchange rates for the national currencies as follows: USD 1 = LVL 0.61, USD 1 = LTL 4.00, USD 1 = EEK 16.80.

Energy, mln USD

Although in comparison to 1998, the turnover of Lietuvos Energija has considerably decreased - almost by 100 million US dollars, it still is the leader of the energy branch. While the Ignalina nuclear reactors (Ignalinos atomine elektrine) keep running, the Lietuvos Energija management can feel safe. Only time will tell what happens in several years' time - Lithuania has agreed to stop operations of the first nuclear reactor at Ignalina by 2005. The future of the second reactor was expected to be decided upon in 2004, but the EU insists that Lithuania make a decision this year on closing the entire plant by 2009. For now, the Ignalina nuke ranks among others in the list, where no power generating companies from either Latvia or Estonia are represented. Lietuvos Dujos is the leader in the gas sector, and it seems likely that it will leave its rivals far behind in future. If Russia's gas giant Gazprom decides to build a gas pipeline to Kaliningrad through Lithuania by the end of the year, the volume of gas transported through the new pipeline would amount to 25 billion cubic meters annually, which should bring about 160 million litas to the Lithuanian budget each year.

Chemicals, mln USD

In comparison, the modest number of companies in the chemical industry list has halved since our last review. Top positions in the branch are still split between Estonia and Lithuania; Latvia, as before, falls behind in this sector.

Oil refinery, trade of crude oil and oil products

This time the oil industry is represented not only by oil trade and transport companies, but, pleasantly, also by an oil drilling company - Lithuania's Minijos Nafta, which did not appear, for example, in the list of 1998. The only oil refining company, and the constant leader for all lists, Lithuania's Mazeikiu Nafta with a turnover of 1.05 billion US dollars in 2000, exceeds the results of all 14 other companies in the branch put together. It is also true that the losses of Mazeikiu Nafta constituted to 179.1 million litas (44.77 million US dollars) in 2000. Moreover, according to initial estimates and generally accepted US accounting principles, the Lithuanian oil group also suffered losses of 277.2 million litas (69.3 million US dollars) for 2001, which is an increase of 55 percent. Nevertheless, Latvia still succeeds with the number of trading companies, moreover, local companies seem to be competing fairly successfully with Neste and Statoil.

Forestry and timber industry, mln USD

atvia and Estonia equally divided this niche between themselves. It must be pointed out that two years ago, Latvian companies were predominant in this branch. Lithuania, as before, is not represented in the list of woodworking industry; they are still standing guard over their green resources.

Food industry, mln USD

The number of food industry representatives has decreased to seven in comparison with the 16 in 1998. Latvia is represented by only one company, but it is the largest producer of alcoholic beverages in the Baltic states: Latvijas Balzams has overcome its neighbors - Estonia's Liviko and Lithuania's Kalnapilis, which are not among the top one hundred Baltic companies. According to the ranking, it seems Lithuanians prefer milk: all three dairies are Lithuanian, while Estonians, evidently, like their beer.

Transport and transit, mln USD

The turnover of many transport companies in this list of 15 has fallen since last, evident of a situation not too favorable for transit. Ventspils Nafta oil terminal is among the five largest companies of the transport branch. Of the three Baltic shipping companies, the Latvian Shipping Company, with its turnover of only 12.75 million US dollars in 2000 was lagging far behind others.

Light industry, mln USD

Communications, mln USD

ithuania's Omnitel and Latvia's TELE 2 (still named Baltcom GSM when these figures were calculated) have joined the list of companies providing communications. It is obvious that mobile communications in the Baltic States are becoming more and more popular, with mobile telephone clients just about to surpass the number of fixed line phone subscriptions.

Trade, mln USD

The leader far in front of its rivals, Vilniaus Priekyba, has increased its turnover more than twice in three years, also having launched operations outside Lithuania. Nevertheless, looking at the number of trading companies, Estonians are still in front.

Construction, mln USD

Constructors, especially Estonian companies, represented with an overwhelming majority on this list, are also strengthening their positions. Among the rookies is Lithuania's Algos Grupe.

Engineering, electrical appliances, metalurgy, mln USD

Pharmaceuticals, health services, mln USD

No company dealing with health services is among the largest Baltic enterprises. Only the Riga Stradina Kliniska Universitates Slimnica hospital may have entered the list, but its turnover of 23.5 million US dollars is not enough for our criteria; obviously, health services will be growing more expensive in the future, and we may expect some such companies on this list.

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