MAZEIKIAI—Маzeikiu Nafta reported its consolidated preliminary financial results for the nine months of 2004 to the Vilnius Stock Exchange.

The Company earned 448.2 million Litas (158.5 million US dollars) net profit during the nine months of 2004 under U.S. Generally Accepted Accounting Principles (US GAAP), compared to 117.9 million Litas (37.3 million US dollars) net profit during the same period in 2003. Net profit for the third quarter of 2004 was 215.9 million Litas (76.1 million US dollars), while net profit for the same period a year ago was 43.9 million Litas (14.3 million US dollars).

Company’s revenues reached 5.5 billion Litas (1.9 billion US dollars) during the nine months of 2004, or 1.7 billion Litas (735 million US dollars) more than in the same period last year.

“The financial results that we enjoy today are direct results of 3 factors: 1) high refining margins in the market; 2) Mazeikiu Nafta’s ability to process higher than originally designed rates of crude because of innovation by Mazeikiu Nafta staff; and 3) Yukos ability and diligent efforts to supply additional volumes of crude above our annual plan, which allows Mazeikiu Nafta to capture the available market opportunities”, said P. Nelson English, General Director of Mazeikiu Nafta. “Last but not least Mazeikiu Nafta acknowledges the consistent hard work by all employees and business partners”, Mr. English added.

Маzeikiu Nafta refined 6.28 million metric tons of crude and other feedstock during the nine months of 2004, 1.31 million metric tons more than in the same period last year. The refinery reached a record monthly throughput in August by processing almost 813 thousand metric tons of crude oil.

The Butinge Terminal loaded 6.34 million metric tons of crude during the nine months of 2004, compared to 8.30 million metric tons in the same period of 2003. The Terminal loaded 63 tankers from January through September 2004, compared to 81 tankers loaded in the same period of 2003. 
The pipeline system transhipped 14.24 million metric tons of crude and diesel during the nine months of 2004, compared to 16.77 million metric tons in the same period a year ago.

Маzeikiu Nafta collected and paid over 1.4 billion Litas in taxes during the nine months of 2004.

Маzeikiu Nafta Trading House, a wholly owned subsidiary of Маzeikiu Nafta, continued successful operations in its strategic markets.

Sales of gasoline, diesel and other products within nine months of 2004 amounted to 1.14 million metric tons in Lithuania, 445 thousand metric tons in Latvia, 294 thousand metric tons in Estonia and 355 thousand metric tons in Poland. Sales in strategic markets for same period a year ago were 1.06 million metric tons in Lithuania, 348 thousand metric tons in Latvia, 219 thousand metric tons in Estonia and 197 thousand metric tons in Poland.

Almost 3.47 million metric tons of products were transported via the Klaipeda seaport to Western Europe, the United States and other parts of the world during the nine months of 2004, up from 2.61 million metric tons within the nine months of 2003.

Date: October 29, 2004
Contacts:
Giedrius Karsokas
AB Mazeikiu Nafta
tel. +370 610 65298
fax +370 443 92579
giedrius.karsokas@nafta.lt