MAZEIKIAI—Today Маzeikiu Nafta reported its preliminary unaudited financial results for the first six months of 2003 to the Lithuanian Stock Exchange. The results reflect stable operations of the refinery, Butinge Terminal and the Birzai Pipeline and a significant financial improvement compared to the financial results of operations during the same period a year ago.

Net profit for the first six months of 2003 was 74.068 million Litas, compared to a 135.7 million Litas loss for the same period last year.  According to US Generally Accepted Accounting Principles (GAAP), Mazeikiu Nafta reported an unaudited loss of 41.7 million Litas for the second quarter of 2003, compared to a 31.3 million Litas loss during the same period of 2002.

According to Lithuanian accounting principles (LAP) Mazeikiu Nafta posted a 6.2 million Litas net profit for the second quarter of 2003. LAP net profit during the first six months of 2003 was 146.4 million Litas, compared to a 209.55 million Litas loss during the first six months of 2002.

P. Nelson English, general director of Mazeikiu Nafta noted, “The financial results of Mazeikiu Nafta reflect the generally stable operations of the company offset by additional expenses for the temporary closure of the refinery for implementing important maintenance projects.”

Маzeikiu Nafta refined over 2.8 million metric tons of crude and other feedstock during the first six months, which is almost 300,000 metric tons less than in the same period last year due to the full turnaround at the refinery that took the facilities out of operation for over a month.

The Butinge Terminal loaded 5.86 million metric tons of crude during the first-half year 2003, compared to 1.94 million metric tons in the same period of 2002. The Terminal loaded 58 tankers from January to July 2003 compared to 20 tankers loaded in the same period of 2002.

The Birzai pipeline transshipped 10.72 million metric tons of crude and diesel in the first six months, compared to 12.17 million metric tons of crude during the same period a year ago.

Маzeikiu Nafta paid over 1 billion Litas in taxes to the Lithuanian government during the first half-year of 2003, compared to 887 million Litas during the same period in 2002.

Contacts: Giedrius Karsokas 
AB Mažeikių Nafta  
Tel.: +370 610 65298
Fax: +370 443 9 25 79
giedrius.karsokas@nafta.lt