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

The Company earned 721.8 million Litas (260.8 million US dollars) net profit in 2004 under U.S. Generally Accepted Accounting Principles (US GAAP), compared to 220.9 million Litas (71.9 million US dollars) net profit in 2003. 

Company’s revenues reached 7.6 billion Litas (2.7 billion US dollars) in 2004, or 2.3 billion Litas (1 billion US dollars) more than in the same period last year.

"2004 was the most successful year in company's history" said P. Nelson English, General Director of Mazeikiu Nafta. "Innovations and diligence by our employees, support by our shareholders Yukos and Government of Lithuania, Yukos ability to supply additional volumes of crude above our annual plan and extraordinary positive refining margins were the crucial factors in our success".

Маzeikiu Nafta refined 8.66 million metric tons of crude and other feedstock in 2004, 1.5 million metric tons more than in the same period a year before. The refinery reached a record monthly throughput in December by processing 832 thousand metric tons of crude oil and other feedstock.

The Butinge Terminal loaded 7.24 million metric tons of crude in 2004, compared to 10.71 million metric tons in 2003. The Terminal loaded 72 tankers from January through December 2004, compared to 106 tankers loaded a year before.

The pipeline system transhipped 19.67 million metric tons of crude and diesel in 2004, compared to 20.56 million metric tons a year ago.

Маzeikiu Nafta collected and paid 2 billion Litas in taxes in 2004. The company also repaid 28 million Litas (10.2 million US dollars) in principal on long-term loans and a total of 71.8 million Litas (25.9 million US dollars) in interest payments, including almost 59 million Litas (21.3 million USD) in interest paid to Lithuanian state budget.

Mazeikiu Nafta will also pay the largest profit tax in Lithuania's history — 137.5 million Litas (49.4 million USD).

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 in 2004 amounted to 1.6 million metric tons in Lithuania, 595 thousand metric tons in Latvia, 427 thousand metric tons in Estonia and 546 thousand metric tons in Poland. Sales in strategic markets for same period a year ago were 1.5 million metric tons in Lithuania, 503 thousand metric tons in Latvia, 332 thousand metric tons in Estonia and 300 thousand metric tons in Poland.

Almost 4.7 million metric tons of products were transported via the Klaipeda seaport to Western Europe, the United States and other parts of the world in 2004, up from 3.7 million metric tons in 2003.

Date: February 21, 2004
Contacts:
Giedrius Karsokas
AB Mazeikiu Nafta
tel. +370 610 65298
fax +370 443 92579
giedrius.karsokas@nafta.lt