Ventspils nafta Annual report/ annual accounts 27.04.2012

Losses of the VN Group have reduced 5 times amount to 12 million lats

RIGA, LATVIA, 2012-04-27 17:28 CEST (GLOBE NEWSWIRE) -- In 2011 the audited
consolidated losses of JSC Ventspils nafta (hereafter – VN) (NASDAQ OMX RIGA:
VNF1R) and its subsidiaries (hereafter – the VN Group) have considerably
decreased – they were 12.2 million lats in 2011, which is five times less than
a year ago – in 2010 the Group’s losses were 65.57 million lats. Out of these
losses, the audited losses referable to shareholders of the parent company were
7 million lats in 2011, but in 2010 – 30.49 million lats.

Turnover of the VN Group in 2011 was 118.2 million lats, which is over 5.5%
more than in 2010 (112 million lats).

A significant change that should be mentioned is that when preparing the
audited consolidated financial statements of the VN Group for 2011, the VN
Group has changed its accounting policy. As a result, for the first time
financial statements of JSC Latvijas kuģniecība (LK) Group are consolidated
into the financial statements of the VN Group. Changes in the accounting policy
are the main reason why the audited financial statements of the VN Group for
2011 differ substantially from the previously published unaudited financial
statements of the VN Group for 2011 where the VN Group evaluated its investment
into the LK Group according to equity method in the same way as in the previous
reporting years. In the financial statements, comparatives for 2010 have also
been restated to conform to the new accounting policy.

The overall annual results of the VN Group are substantially affected by losses
of the related company JSC Latvijas kuģniecība. While they have reduced three
times compared to last year, still in 2011 they reached 24 million lats.

On December 31, 2011, the audited assets of the JSC Ventspils nafta Group were
629.48 lats.

Parent company of the VN Group

In 2011, audited turnover of the VN Group’s parent company was 323 thousand
lats, which is about 192 thousand lats or 147% more than in 2010. Within the
rendered management consultations, the emphasis is mainly on organizing united
procurements for the VN Group’s companies, as well as receiving various
corporate service discounts, thus achieving decrease of administrative costs
for the JSC Ventspils nafta Group.

In 2011 the net profit of JSC Ventspils nafta reached 362 thousand lats, and
the Management Board has proposed to transfer it to other reserves.

In 2011 the Group’s parent company continued implementing the strict cost
cutting policy that was commenced in 2010 with the most substantial savings
achieved in administrative expenses, which have decreased from LVL 1.47 million
in 2010 to LVL 1.1 million in 2011 having a decrease in the reporting year by
25.2%. JSC Ventspils nafta has achieved that administrative expenses have more
than halved over a period of two years, saving approximately 1.3 million lats
in 2011 versus the 2009.

About JSC “Ventspils nafta”

JSC “Ventspils nafta” is one of the largest groups of companies in Latvia and
works in the petroleum product transport and storage sector. JSC “Ventspils
nafta” is the Group’s parent company, which manages investments in subsidiary
companies, by promoting the Group’s joint values and growth in value of each
individual company.

Joint stock company “Ventspils nafta” owns 51% in “Ventspils nafta termināls”
Ltd, which is the largest crude oil and petroleum product terminal in the
Baltics, as well as 66% in “LatRosTrans” Ltd, which is the largest
Latvian-Russian joint venture in the Baltics. JSC “Ventspils nafta” also
ensures investment management (49.94%) in the related company JSC “Latvijas
kuģniecība”, which is among the leading ship owners in the world in the
medium-sized and handy tankers category.

Shares of JSC “Ventspils nafta” ( VNF1R) are quoted in the Baltic Official List
of the stock exchange NASDAQ OMX Riga since October 20, 1998.


Ilze Nagla
Public Relations Manager
JSC “Ventspils nafta”
Tel.: 29267454, 67715914
E-mail: ilze.nagla@vnafta.lv
www.vnafta.lv, www.vnt.lv


1. VN Group consolidated ENG 2011_LVL.pdf
(https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=390298)
2. VN stand alone ENG 2011_LVL.pdf
(https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=390301)
3. VN Group consolidated ENG_2011_EUR.pdf
(https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=390299)
4. VN stand alone ENG 2011_EUR.pdf
(https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=390300)

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