MAZEIKIAI (July 31, 2002)—Today, Mazeikiu Nafta informed the Lithuanian Stock Exchange about its preliminary financial results for the second quarter of 2002.
According to US generally accepted accounting principles (GAAP), Mazeikiu Nafta reported an un-audited loss of 31.3 million Litas for the second quarter of 2002, compared to a 104.4 million Litas loss during the first three months of the year. The loss over the first six months of 2002 amounts to 135.7 million Litas, compared to a 71 million Litas loss for the same period a year ago.
According to Lithuanian accounting principles (LAP), Mazeikiu Nafta posted a 128.55 million Litas loss for the second quarter, compared to a loss of 81 million Litas reported for the first quarter of 2002. The loss for the first six months of 2002 was 209.55 million Litas, compared to a loss of 77.3 million Litas during the first half of 2001.
Tom Schneider, general director of Mazeikiu Nafta has noted “the GAAP results of Mazeikiu Nafta for the second quarter of the year reflect the improved performance of the company compared to the first quarter of 2002. First of all, the Butinge terminal was loading crude oil into tankers at its capacity rate, exporting more than 2 million tons of Russian oil during the second quarter alone. Second, the quarter results reflect slight improvement of the refining margins in Europe that were 12 dollar per ton higher during the second quarter of this year compared to the first quarter, but still did not reach the level of the plan that was developed by the company specialists for 2002, and remained significantly below the margins experienced during the same period a year ago”.
“The LAP results were influenced by the settlement of Williams promissory note against the shortfall of target Mazeikiu Nafta earnings before taxes, depreciation and amortization (EBITDA) procedure. Because Mazeikiu Nafta did not reach the target EBITDA from the start of 1999 to the end of 2001, in accordance with the Investment Agreement signed in 1999, the company paid Williams the agreed EBITDA shortfall. This transaction had no cash effect on Mazeikiu Nafta financials, as company received the payment from Williams for the promissory note. The EBITDA shortfall settlement against the promissory note had a negative book-value impact on Mazeikiu Nafta’s financials due to LAP accounting procedures”— noted Schneider.
Date: July 31, 2002
AB Mazeikiu Nafta
tel. 370 93 92608
fax 370 93 email@example.com