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Lithuania Business News: Archive 2003-

WEEK 17.2007

Saturday, 28th of April

Lithuanian oil production drops
With oil wells in Western Lithuania getting drier, the country's total crude oil production declined by 17.4 percent, to 39,800 tons in the first three months of 2007.
In March alone, the output plunged 20 percent, year-on-year, to 13,600 tons.
In 2006 the oil production in the country shrank by 16.1 percent, to 181,800 tons, from 216,700 tons in 2005. Domestic oil producers include Minijos Nafta, Geonafta, Genciu Nafta and Manifoldas.
Lietuvos Rytas

Lithuanian central government debt
Lithuanian central government debt reached LTL 14.451 billion at the end of the month, and accounted for 15.7 percent of this year's projected gross domestic product (GDP), the Finance Ministry reported.
Central government's domestic debt expanded by LTL 211.6 million in March versus February, to reach LTL 4.412 billion, while the foreign debt shrank by LTL 84.1 million, to LTL 10.04 billion. Central government's arrears to domestic finance sector stood at LTL 4.321 billion, non-financial sector - LTL 59.7 million, other creditors – LTL 39.9 million. Arrears to foreign banks and other financial institutions made up LTL 9.404 billion, international organizations – LTL 635.7 million. Central government's long-term and short-term debt made up 96.4 percent and 3.6 percent of total debt figure, respectively, as of late March.

Lietuvos Energija pre-tax profit falls
Lithuania's state-run power transmission company Lietuvos Energija said its first-quarter pre-tax profit fell by 32.9 percent to LTL15.3 million, from LTL 22.8 million a year earlier.
Revenue for the first quarter rose by 22.5 percent year-on-year to LTL 292 million.
EBITDA for the three months declined to LTL 52.9 million, from LTL 63.6 million in the same period last year for the full year 2006. It has decided to pay out LTL 8.15 million, or LTL 1.18 per share, in dividends to shareholders for the year.
Lietuvos Zinios

Friday, 27th of April

SEB group sells properties in the Baltic States
Swedish financial group SEB, which owns banks in Lithuania, Latvia and Estonia, is selling its properties in the three Baltic countries to Homburg Invest, a Canadian real estate company that has been active in the Baltic region for some years. The real estate portfolio consists of 63 properties located in the three countries, SEB said in a statement to the Stockholm Stock Exchange. SEB said that the group's total capital gain from the sale would likely exceed SEK 0.7 billion.
Lietuvos Rytas, Lietuvos Zinios, Kauno Diena

Anyksciu Vynas revenues jump up
Lithuanian alcoholic drink producer Anyksciu Vynas first-quarter sales revenue jumped by 59.1 percent year-on-year to LTL 10.296 million according to the Vilnius Stock Exchange Market. Anyksciu Vynas reported a net profit of LTL 42,000 for the first quarter of this year, versus a loss of LTL 128,000 in the same period a year ago.
Verslo Zinios

Latvia stays in group
Latvia does not intend to step back from the new nuclear atomic plant construction in Ignalina project. Lately Latvia media announced that the country might refuse to participate in the project, however Latvian representatives denies it during the Baltic States and Poland meeting in Vilnius. The Estonian and Latvian parliamentarians offered to name the present strategic partners and decide which new partners could be invited into this project. It foreseen that Lithuania will control 34percent of shares and Latvians, Estonians and Poles will have the rest 22 percent each.
Lietuvos Rytas

Thursday, 26th of April

Apranga Group posts its figures
Apranga Group, the leading Baltic clothes retailer controlled by Lithuania's MG Baltic concern, posted LTL 5.7 million in unaudited pre-tax profit for the first three months of 2007, a fourfold surge versus the year-earlier pre-tax figure of LTL 1.43 million.
The rise in profit was fuelled by growing retail volumes and effective business management.
Lietuvos Rytas

Minimum wage in Lithuania
Some 8.5 percent of Lithuania's full-time working population earned minimum monthly salaries last year, down 1.8 percentage points compared with the previous year.
Among people with full-time jobs, the percentage of those earning more than LTL 1,2 thousand monthly rose by 10.5 points year-on-year to 56.1 percent, based on the results of an earnings survey conducted last October.
Lietuvos Rytas

Invalda earns net profit
Lithuanian investment company Invalda said its financial sector operations earned a net profit of LTL 9 million in the first quarter of this year. Darius Kaziunas, director in Finasta, said that such rapid development was conditioned by successful investments and growing need for professional finance sector service in Lithuania.
The financial sector operations posted a net profit of LTL 7.9 million for the full year 2006. The parent company's share of the net profit was LTL 7.7 million.
Invalda projects an annual net profit of around LTL 5.5 million from its financial sector operations this year.
Verslo Zinios

Wednesday 25th of April

Vilniaus Vingis stops its production
Lithuania's Vilniaus Vingis decided on Tuesday to cease production of TV deflection yokes from Wednesday, April 25, after almost 50 years of operation.
"Orders from buyers have declined sharply. The price they offer is 20 percent lower than the price at which we sold our products until recently and it is not acceptable to us. We are no longer in a position to compete with the Chinese and Indians," Vilniaus Vingis CEO Neringa Menciuniene said.
Orders for Vilniaus Vingis' systems started to decrease in 2005, and last year the company saw sales slump by 47 percent to 3.1 million units, partly due to Ekranas' bankruptcy, she said.Vilniaus Vingis continues to operate as an investment company. Its deflection yoke production subsidiary, Vilniaus Vingio Geba, halted production last week after Samsung, its only remaining buyer, placed no new orders. The subsidiary, which is slated for liquidation, currently employs 138 people.
Lietuvos Zinios, Lietuvos Rytas, Respublika,Verslo Zinios

Growth in insurance market
The Lithuanian insurance market grew by 44.9 percent in the first quarter of this year from a year earlier to reach LTL 398.297 million.
The non-life insurance market increased by 37.2 percent year-on-year to LTL 268.4 million The life insurance market soared by 64 percent to LTL 129.921 million.
Lietuvos Rytas, Lietuvos Zinios

Passenger flow boosts by one-fifth
Lithuanian airlines carried 151,100 passengers in the first three months of this year, a surge of 21.3 percent versus the year-earlier figure.
Some 101,000 passengers took regular flights, a rise of 10.9 percent from the January-to-March period of 2006. The busiest routes included flights to and from UK (17.8 percent of total passenger flow), Germany (14 percent), Denmark (11.8 percent) and Ireland (9.9 percent). Compared with the first quarter of 2006, the number of passengers on flights to and from Ireland soared by 96.7 percent, Germany - 62.7 percent, UK - 15 percent and Denmark - 14.4 percent.
Lietuvos Zinios

Tuesday, 24th of April

Maxima LT sells its stores in Romania
Maxima LT, the largest retail chain in the Baltics, is selling its stores in Romania to Profi Rom Food for an undisclosed amount of money and is withdrawing from that market. "We received a very good offer and had to make a decision in a relatively short time. The Romanian business was not loss-making, but we were not actively expanding it. Therefore, the decision to withdraw from the retail market of that country was not a difficult one," Maxima LT Chairman and CEO Gintaras Marcinkevicius said in a statement. The group will continue to focus on expanding its operations in three Baltic countries and Bulgaria, he said. Maxima LT signed an agreement to sell all of its stores in Romania on April 18 and is now awaiting approval from the country's competition authorities to close the deal. The chain, which is owned by Vilniaus Prekyba, launched operations in Romania in 2004.
Lietuvos Rytas,Lietuvos Zinios, Kauno Diena, Verslo Zinios

Akmenes Cementas announces its figures
Lithuania's only cement manufacturer Akmenes Cementas said its annual net profit soared to LTL 25.1 million last year. The company said it would pay out LTL 611,260 in dividends to holders of preference shares.
The cement manufacturer expects to increase cement production by around 5 percent and targets a rise of up to 15 percent in annual sales this year. It posted revenue of LTL 188.04 million last year, with cement sales exceeding a million tons.
Lietuvos Zinios

New investments for Anyksciu Vynas
Anyksciu Vynas, controlled by Alita, is going to invest about LTL 1 million in Anyksciu liquers’ brand names. Anyksciu Vynas announced that it will invest into Bobeline and Labanoras brand names and the biggest amount of money LTL 900 thousand will be meant for Bobeline brand name renewal, development and getting new technological equipment. It is the biggest company’s investment to this brand name during the whole production period.
Verslo Zinios, Lietuvos Rytas

Monday, 23rd of April

Lifosa net profit halves
Russian-controlled Lithuanian phosphate fertilizer manufacturer Lifosa saw its first-half net profit halve to LTL 8 million. Sales revenue for the first quarter dropped by 10.7 percent year-on-year to LTL 157.381 million. Sales of diammonium phosphate, its main product, fell by 12.5 percent from a year earlier to 181.6 million tons. The fertilizer manufacturer recorded a 13.1 percent growth in annual revenue.
Lietuvos Zinios

One more Maxima in Bulgaria
Maxima LT, the largest grocery chain in the Baltics, opened its 17th Bulgarian store in the capital of Sofia on Friday. It is the tenth Maxima shop in Sofia and 17th is all Bulgaria. This brings to 377 the total number of the chain's stores, including 204 in Lithuania, 111 in Latvia, 36 in Estonia, 17 in Bulgaria and nine in Romania.
Lietuvos Zinios

Hermis Capital wants to buy Klaipeda newspaper
Lithuanian investment company Hermis Capital is looking to buy the regional daily newspaper Klaipeda following the acquisition of the Kauno Diena daily earlier this year.
Nerijus Dagilis, president of Hermis Capital, said that the company plans to acquire up to 100 percent of shares in Klaipedos Laikrascio Redakcija. Dagilis negates that the purchased newspaper could become Klaipedos Diena, which name the company wants to register. Valdemaras Puodziunas, director and the main editor of Klaipeda newspaper, says that there are not many shareholders and to purchase all the stocks hardly will be possible.
Verslo Zinios

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