Released: 29/06/2010
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RNS Number : 3842O
Baltic Oil Terminals Plc
29 June 2010
29 JUNE 2010
BALTIC OIL TERMINALS PLC
("Baltic" or "the Company")
ANNUAL GENERAL MEETING STATEMENT
Baltic owns and operates oil product terminals in the strategically vital Russian port of Baltysk, Kaliningrad on the
Baltic Sea and through its subsidiaries is engaged in matched refined oil product trading.
At today's Annual General Meeting, Baltic's Chairman, Richard Healey, will make the following statement:
"I am very pleased to report that since announcing our annual results earlier this month, Baltic has continued to make good
progress.
"Trading conditions in Kaliningrad remain favourable, which has allowed the Rosbunker terminal to operate at consistently
high levels of capacity. Rosbunker is expected to maintain this performance through the summer months until the Volga
River closes for winter, at which point the terminal's competitive position in the region becomes stronger, as Kaliningrad
is the only Russian ice free outlet into the Baltic market.
"Baltic Top is continuing to operate at full capacity and we are constantly looking for ways to enlarge the terminal in
order to take advantage of the market that is now restored to its original levels after the Russian crisis.
"Our oil products trading JV is continuing to execute trades at good margins, with product being sourced from a wide
variety of sources and we continue to look for more opportunities to enter into similar ventures.
"In June TDKN Terminal began contributing to our bottom line for the first time, under the lease arrangement that we have
entered into. We consider this to be an important sign of the more favourable conditions existing in the region.
"We are therefore well positioned for the second half of the year. Together with the efforts we have made to reduce
overheads and remove other distractions, we are performing better than we expected a year ago."
Enquiries:
Baltic Oil Terminals plc Tel: +44 (0)20 3145 1909
Simon Escott, Chief Executive
Arbuthnot Securities Limited Tel: +44 (0)20 7012 2000
Alastair Moreton, Corporate Finance
Pelham Bell Pottinger
Archie Berens Tel: +44 (0)20 7861 3112
About Baltic Oil Terminals
Over the last five years, Baltic has built up a terminals business in the Russian ports of Baltysk and Kaliningrad. A
separate enclave located between Poland and Lithuania, Kaliningrad is Russia's only year round access to the Baltic Sea.
Other ports in the region, such as St Petersburg, are frozen for much of the winter, as are many rivers, including the
Volga River, one of the most significant commercial waterways in the world. As Russia relies on year round export of its
vast supplies of petroleum products, Kaliningrad is thus a trading centre of major strategic importance.
Baltic's key asset is a 50% interest in the Rosbunker terminal, which is located at Baltysk, right on the Baltic Sea at the
mouth of the Pregol River leading into Kaliningrad. It is the only port in the region at which all types of ship can take
on cargo, as the channel into Kaliningrad is too shallow for many vessels. Trains are able to deliver products from all
over Russia, the Former Soviet Union and Asia directly to the terminal.
Since 2007, the Rosbunker terminal has been handling consignments of oil refined products, specialising in fuel oil
(mazut), a product that requires heating and special equipment and as such is not handled by other terminals in the area.
Baltic earns tolling fees for processing the unloading of cargo from trains into storage tanks and then onto vessels.
Baltic is also able to trade in these products in its own right, taking advantage of local price differences. Since the
financial crisis in Russia, this market has become increasingly interesting to Baltic. Baltic's transportation and trading
activities utilises its extensive network of industrial partners and refineries.
In addition to Rosbunker, Baltic also has interests in several other oil product assets in Kaliningrad, which derive
revenues through processing and distribution of oil products to domestic markets. More recently, plans were announced for
establishment of a grain terminal adjacent to the Rosbunker terminal.
Baltic's executive management have a wealth of experience of the oil services industry. The team has worked in the
industry for more than 40 years, constructing and operating oil rigs, terminals and other infrastructure in world wide
locations, including the Former Soviet Union.
Baltic has been listed on AIM since May 2006. It is headquartered in Kaliningrad, with a small representative office in
London.
This information is provided by RNS
The company news service from the London Stock Exchange