MAZEIKIAI — Маzeikiu Nafta reported its consolidated preliminary financial results for the first six months of 2004 to the Lithuanian Stock Exchange. Company’s auditor PricewaterhouseCoopers reviewed financial results.

The Company earned 232.2 million Litas (82.4 million US dollars) net profit during the first six months of 2004 under U.S. Generally Accepted Accounting Principles (US GAAP), compared to 74 million Litas (23 million US dollars) net profit during the same period in 2003. Net profit for the second quarter of 2004 was 128 million Litas (44.5 million US dollars), compared to 41.7 million Litas (13 million US dollars) net loss during the same period of 2003.

Company’s revenues reached 3.1 billion Litas (1.1 billion US dollars) during the first six months of 2004, or 862.2 million Litas (391.9 million US dollars) more than in the same period last year.
 “That was the most profitable six months in company’s history due to high refining margin, record throughputs and the hard work and dedication of our employees”, said P. Nelson English, General Director of Mazeikiu Nafta.

Маzeikiu Nafta refined over 3.9 million metric tons of crude and other feedstock during the first six months of 2004, more than 1 million metric tons more than in the same period last year. The refinery reached a record monthly throughput in June by processing 754 thousand metric tons of crude oil and continues to run at record daily rates.

The Butinge Terminal loaded 4.62 million metric tons of crude during the first six months of 2004, compared to 5.87 million metric tons in the same period of 2003. The Terminal loaded 46 tankers from January through June 2004, compared to 58 tankers loaded in the same period of 2003. 
The Birzai pipeline transhipped 10.4 million metric tons of crude and diesel during the first six months of 2004, compared to 10.73 million metric tons in the same period a year ago.

Маzeikiu Nafta collected and paid over 847 million Litas in taxes during the first six 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 six months of 2004 amounted to 672 thousand metric tons in Lithuania, 249 thousand metric tons in Latvia, 167 thousand metric tons in Estonia and 167 thousand metric tons in Poland. Sales in strategic markets for same period a year ago were 633 thousand metric tons in Lithuania, 194 thousand metric tons in Latvia, 129 thousand metric tons in Estonia and 116 thousand metric tons in Poland.

Almost 2.23 million metric tons of products were transported via the Klaipeda seaport to Western Europe, the US, Canada and other parts of the world during the six months of 2004, up from 1.39 million metric tons within the six months of 2003.

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