Ventspils nafta termināls
 
 

Annual report

Management report 2017

Establishment of the Company

SIA Ventspils nafta termināls (hereinafter – the Company) started its operations within the AS Ventspils nafta group in October 2003, taking over the experience in receiving, storage and reloading of petroleum products accumulated by AS Ventspils nafta over the period since 1961.

Until March 2007 the Company was a 100% owned subsidiary of AS Ventspils nafta. In March 2007 a new shareholder of the Company was registered – Euromin Holdings (Cyprus) Limited, a related company of the international company Vitol, which is also among AS Ventspils nafta shareholders. Euromin Holdings (Cyprus) Limited took title to 384 855 shares or 49% in the Company and AS Ventspils nafta held 400 563 shares or 51%.

On 23 March 2010, the shareholding structure changed as Euromin Holdings (Cyprus) Limited sold its shares in the Company to Eurotank Holding Sarl, a company of the international terminal operator VTTI, which took over the ownership to 49% in the Company since then.

On 30 June 2017, the shareholding structure changed once more when AS Ventspils nafta sold 51% of its shares to Martank B.V. (Netherlands), a fully owned subsidiary of the international company Vitol. From that moment on Martank B.V. (Netherlands) owns 44 244 986 shares or 51% of the Company, and Eurotank Holding Sarl owns 42 509 927 shares of the Company or 49%.

The Company has been in the transit business for fifteen years already, providing services such as receipt of crude oil and gas oil by pipelines, receipt of gas oil, gasoline and other petroleum products delivered by rail and sea, storing and reloading the products onto sea going vessels, as well as providing additional services related to its core business. The Company operates a tank farm for storage of petroleum products with a total capacity of 1.2 million cubic meters making it one of the largest among others companies involved in similar business in Latvia or the neighbouring Baltic States.

Development of the Company in 2017

In 2017, the Company experienced a decrease in its transhipment to 6.1 million metric tons, compared to 6.9 million metric tons in 2016. The throughput of products delivered by railway and vessels was 2.6 million metric tons and the throughput of pipeline gasoil was 3.5 million metric tons. The decline in cargo volumes is due to lesser deliveries of products via rail from Russia due to restriction imposed by Russia.

As a result of declining cargo volumes, the Company streamlined its operational processes and procedures and increased its organizational efficiency in order to adapt to changing market conditions related to lesser cargo volumes and types, thus forming the basis to strengthen its position in the local and regional market in the future. The Company received the Authorised Economic Operator license, and completed the pipeline wrapping project consisting of the reconditioning of three (3) main pipelines connecting the terminal with the jetties with composite material, thus extending their operational life by 20 years. Moreover this year the company began the construction of the vapour recovery unit which, upon completion, allows the Company to be compliant with new environmental regulations to become effective in June 2018 and to expand its portfolio of products allowed for transhipment.

The Company takes active part in the Employers Confederation of Latvia and the Latvian Chamber of Commerce and Industry. As of 2017 the Company is also a member of the Foreign Investors' Council in Latvia. The performance of the Company was also positively recognised by governmental and non-governmental organisations.

In 2017, for a third year in a row, the Company received the Platinum award in the nationwide Sustainability Index. Furthermore, the Company received first place in the global Tank Storage Awards in the category “Safety Excellence in Bulk Liquid Storage” and took second place at the Baltic Communication Awards 2017 in the category Internal Communication.

For the third year in a row the Company received an award from CV-online “Top Employer in Kurzeme”. The Employers' Confederation of Latvia awarded the Company the status of “Age Friendly Company” and “TOP 10 Internship Provider”, while Ministry of Welfare granted the status “Family friendly company”.

Furthermore the Ministry of Environmental Protection and Regional Development awarded the Company “Bicycle Friendly Company” for an active promotion of the cycling culture.

Impact of the environmental protection requirements

By implementing declared environmental and quality policy goals in 2017, the Company carried on with the tasks included in the environment management programme, such as maintaining the safety level of operational processes, improving the current environmental monitoring system, treating and remediating polluted areas in the Company’s territory while also contributing to the reduction in energy consumption and the development of environmental awareness with employees and subcontractors. According to the Energy Efficiency Law the Company has created and maintains a certified environmental management system (with a supplement), which includes an energy management system. They help to identify energy efficiency measures, incorporating them into the Company’s action plan in order to significantly save energy.

Under the environmental management program developed and approved by the Company, the Company will seek to maintain and restore the quality of the environment as well as to ensure sustainable use of natural resources.

Compliance of the Company with ISO 9001 and ISO 14001 was successfully re-certified in 2016 by the international certification organisation Bureau Veritas, by carrying out an audit in all departments of the Company in order to ascertain that its integrated management system meets the requirements set by the environmental management standard ISO 14001:2004 and the quality management standard ISO 9001:2008. Along with ISO 14001 the energy efficiency process was also reviewed within the Company and accordingly an ISO 14001 extension was granted to fulfil the requirements of EC Directive 2012/27/ES on energy efficiency. Bureau Veritas ISO Certification is valid until 15.09.2018.

The Company also managed to prove its compliance to the OHSAS 18001:2007, Occupational Health and Safety, certificate first obtained in 2012 and was successfully re-certified by Bureau Veritas Certification after having passed their certification audit. The certificate is valid until 21.10.2018 and is an important indicator of the Company’s efforts to maintain a high level of requirements and invest in the essential Occupational Health and Safety at work.

The quality and environmental management system assures that the Company is able to guarantee safe and efficient services in the transhipment business, while also decreasing the Company’s impact on the environment in an economically reasonable way. For the Company’s customers, partners, shareholders and society, ISO and OHSAS certificates attest that processes at the Company are well-arranged and take place in tightly controlled conditions, thus ensuring conformity of the Company’s services to the initial requirements, as well as maintaining and developing the efficiency of the Company’s management.

Planned operations in 2018

The objectives of the Company in 2018 is to adapt to operate in an environment of declining cargo flows / volumes within the Baltic region while also to improve its diversity of services to maintain its value proposition to customers. As part of this the completion of ongoing investment projects is crucial for the Company to further assure a sustainable profitable business in an increasingly competitive market environment. While adapting to the changing market condition is of great importance, maintaining high safety levels of its operational processes and to reduce adverse environmental effects by constantly upgrading and improving the Company’s infrastructure remains the Company’s most important target.

Financial report 2013 - 2017

Ventspils nafta terminals (VNT)

2017

2016

2015

2014

2013 

Turnover (million EUR)

52.8

62.85

79.61

76.85

72.9

Gross profit (million EUR)

18.2

18.04

17.78

19.2

19.3

Net profit  (million EUR)

16.1

13.12

14.01

12.2

12.4

Oil cargo transshipment volume (tonnes)

6.1

6.9

9.2

10.58

9.64