JANAF Management Board presented financial figures for 2008 and announced business activities for 2009

04.02.2009. 14:44

Zagreb – The Management Board of JANAF Plc. presented today, 4 February 2009, the unaudited financial statements for the year 2008 and announced the business activities in the year 2009.

Presenting the financial figures for the last year, Mr. Ante Markov, Chairman of the Board, pointed out that, owing to the company’s business activities, the revenues obtained from crude oil transport showed a 3% increase compared to the previous year, regardless of US dollar exchange rate being lower in average when compared to the year before. Transport revenues measured in US dollar were up 9% compared to the previous year.

When compared to the planned ones, the revenues obtained from transport rose by 5%. The crude oil transport, which started by end-2008, for Bosanski Brod oil refinery should therefore be mentioned, implying an increase in the number of oil pipeline system users, as Mr. Markov added.

The total revenues realized from the company core business operation (transport, storage of crude oil and oil products) are at the level of those realized in the year before, with a 9,0% increase when looking at the plan, emphasized the Chairman of the Board.

When the year 2008 is concerned, total revenues realized in that year amounted to HRK 374,9 mil., which is up 4% when compared to the year 2007, showing at the same time also a 28% increase in comparison with the planned ones. The 2008 operating revenues, including those obtained from the core business operations and other operating revenues, show a 10% increase with respect to the previous year.

As a result of the company’s business activities, the gross profit realized in the year 2008 amounted to HRK 67,5 mil., thus being for 35,0% higher than the 2007 gross profit. Through hedging instruments of protection against financial risks, as highlighted, the company significantly reduced a negative impact of US dollar fall.

JANAF continuously realizes positive cash flow from its business activities, which in the year 2008 enabled, along with due repayment of loan liabilities occurred in the previous periods, financing the investments exclusively by its own funds.

“The Paris and London Club loans are repaid in 2008, in the amount of due liabilities of HRK 41,3 mil.,” Mr. Markov pointed out.

The year 2008 saw the continuance of the previously started investment in the replacement of certain technological systems for the technological renewal purposes, aimed at advancing transport safety and environmental protection. Thus, within the past three years, the funds of HRK 552,8 mil. were committed to the value of the investments realized and the advances given, out of which HRK 247,2 mil. in the year 2008. Besides, the amount invested in the existing system maintenance in the said year reached HRK 15,7 mil.

During 2008, the company employed 20 new workers with university and secondary school education, while at the same time 11 employees left the company. As at 31 December 2008, the company employed 381 workers, which is for 9 employees or 2% more in comparison with the previous year.

At the press conference, the Chairman of the Board, Mr. Markov also presented the business activities for this year. Thus, according to Mr. Markov, the 2009 Business Plan foresees an increase in crude oil transport volume of 7% and revenues from core business in the amount of approx. USD 70,0 mil., which represents a 12% increase compared to the year 2008. The investments are planned to be made in the already initiated investment projects in the amount of HRK 200 mil. of own funds and the Plan foresees no further borrowing. Furthermore, the increase of company’s capital was announced in the amount of up to HRK