LNT counting losses

  • 2003-08-21
  • Baltic News Service
RIGA - Latvijas Naftas Tranzits, the largest private shareholder in the Ventspils Nafta oil terminal, saw its net profit shrink nearly 20 times last year to 699,000 lats (1 million euros), according to the 2002 annual report.
In 2001 LNT's profits amounted to 13.7 million lats.
LNT, whose sole business activity is managing investments in Ventspils Nafta and the Western Pipeline System, last year received 5.2 million lats in revenues from holdings in associated companies. LNT income from holdings in the oil terminal alone fell ninefold to 1.2 million lats. Year-on-year, this decline was nearly triple.
Deputy Board Chairman Vladimirs Solomatins said the company's financials fully depended on the oil terminal's performance since LNT had no other businesses.
"If VN has a profit, we also have profit," he explained.
In 2001 LNT revenues from holdings in various associated companies were 15.5 million lats, including 12 million lats from participation in Ventspils Nafta capital.
The company's net turnover dropped 39.8 percent to 28.1 million lats last year, due primarily to dwindling deliveries of Russian crude via pipeline.
If crude deliveries shrank by 50 percent last year from 2001, then this year they have been cut off completely. Company management is trying to compensate by accepting more oil deliveries by rail.