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Lithuania Business News: Archive 2003-

WEEK 29.2007

Saturday, 21st of July

Gossip about Druzhba
Lithuania still fails to get an official confirmation of recent press reports about the completion of repairs on the branch of Russia's Druzhba pipeline supplying crude to Mazeikiu Nafta (Mazeikiai Oil), the sole Lithuanian oil refining and transportation complex controlled by Poland's PKN Orlen. Economy minister adviser Ricardas Slapsys said that Sergey Grigoryev, vice-president of Russia's pipeline monopoly Transneft, said he was unaware of such developments when contacted by Lithuania's commercial attaché. "We have got no official confirmation - probably this report is not backed with facts. There has always been plenty of unconfirmed information about Druzhba," Rosvaldas Gorbaciovas, head of communications department at Mazeikiu Nafta, said.
Lietuvos Rytas, Kauno Diena, Lietuvos Zinios, Respublika

War in Alytaus Tekstile
Color There is a state of war in Alytaus Tekstile, which is ready to publicly announce its bankruptcy. The CEO of the company Algirda Zukeviciene promised to come back to the company only on coming Tuesday. The employees of the company were angry as all the productions and equipment was taken away from the company. Zukeviciene claimed, on the other hand, the money, which would be obtained for this production and metals, would be given for employees’ salaries, which were already late. The employees’ are worried that they would not receive any payments at all, as the new shareholders did not keep their promises and lost the confidence of the employees.
Lietuvos Rytas

Too many people in Neringa
The holidaymakers who were coming to Neringa on Friday had to be patient while looking for a place to park. Only 6,000 holidaymakers can stay in Neringa officially, however on Friday the number exceeded the limit. The holidaymakers are not even afraid to pay LTL 40 for ferry. The police officers and environmentalists are worried about the situation and claim that they do not manage to record all the holidaymakers.
Lietuvos Zinios

Friday, 20th of July

Snoras aims to establish a branch in London
Snoras, the fifth largest Lithuania's commercial bank by assets, aims to establish a branch bank in London. The board ruled on the setting up of the branch bank at its Wednesday meeting. Snoras bank currently runs representative offices in Belarus, the Czech Republic, Latvia, Ukraine, Estonia and Belgium. The offices in Estonia and Belgium would be reorganized into branch banks by the end of the year, Snoras president Raimondas Baranauskas said early in June.
Lietuvos Rytas, Respublika

SEB Vilniaus Bankas raises assets
The group of SEB Vilniaus Bankas, the largest Lithuania's commercial bank, raised the assets by 31.4 percent in twelve months till the end of June, to LTL 23.9 billion The net profit of the banking group soared by 65.6 percent, year-on-year, to LTL 199.1 million in January-June, SEB Vilniaus Bankas said in a statement. The bank alone raised the profit by 67.1 percent, to LTL 220.4 million, including LTL 45.8 million in incomes on dividends.
Verslo Zinios

Teo LT reports profit
Teo LT, Lithuania's dominant fixed-line telephone operator, reported LTL 77.028 million in interim net profit, up by 18.4 percent from the net profit figure of LTL 65.083 million in January-June 2006.
Lietuvos Rytas, Verslo Zinios, Respublika

Thursday, 19th of July

Alytaus Tekstile announces bankruptcy
Workers of Lithuania's Alytaus Tekstile (Alytus Textile) have stormed into the plant's premises on Wednesday amid reports about the bankruptcy of the cotton textiles producer. Protesting employees have entered the office of company's CEO Algida Zukeviciene, who has called the police. Zukeviciene had refused to get out of her office and notify the protesters about the board's decision to declare company's bankruptcy, he added. Alytaus Tekstile, which suspended manufacturing in May, employs a workforce of about 1,200, with some 500 staging protests outside the plant these days.
Respublika, Kauno Diena, Lietuvos Rytas, Lietuvos Zinios, Verslo Zinios

Tenants of Akropolis post revenues
Tenants of Akropolis malls in Vilnius, Kaunas and Klaipeda posted LTL 720 million in combined revenues for the first half of 2007, a surge of 28 percent from the year-earlier figure. The malls drew some 15.6 million visitors in January-June, the mall operator Akropolis said in a statement. The Akropolis mall in Kaunas, which was opened in April, attracted almost 3 million visitors.
Verslo Zinios

BIG wishes to set up a branch in Lithuania
Estonia's commercial bank Balti Investeeringute Grupi Pank (BIG) gears up to set up a branch in Lithuania as it aims to run four units in Lithuania by the end of the year. The Lithuanian branch of Estonian bank would focus on consumer crediting, and the first units would be set up in three largest Lithuania's cities. BIG aimed to launch business via the popular Akropolis mall chain, unofficial sources said.
Lietuvos Rytas

Wednesday, 18th of July

Klaipeda Stevedoring Company reports numbers
Klaipedos Juru Kroviniu Kompanija (Klaipeda Stevedoring Company, or Klasco), the largest stevedoring operator in the Lithuanian port of Klaipeda, handled 4.3 million tons of cargo in the first half of 2007. The company has also signed a contract with St Petersburg's shipyard Pella on the building of two towboats, one of which would be delivered next year, and the other - in the summer of 2009. Klasco Towage Assistance, a Klasco subsidiary, currently operates three towboats. Klasco is owned by the Achema Group.
Lietuvos Zinios

Alytaus Tekstile is in crossroads
The board of collapsing Lithuania's cotton textiles producer Alytaus Tekstile (Alytus Textile) will decide the fate of the company on Tuesday's evening as it gathers to tackle two extremities - possible outlook or bankruptcy. Algirda Zukeviciene, CEO of Alytaus Tekstile, also supported the possible bankruptcy decision, despite the fact that the board was promising employees to revive the company at the beginning of July. The cotton textiles producer currently employs about 1,200 workers who shall be paid a reporting pay for downtime. The company's arrears to other creditors - approximately LTL 40 million.
Lietuvos Rytas, Verslo Zinios

Novaturas reports sales
Novaturas, the leading Baltic tour operator, reported its sales in Lithuania soaring by 56 percent, year-on-year, to LTL 86.2 million, in the first half of 2007. The company is projecting its Lithuania's sales reaching LTL 193 million this year. In Lithuania, the Novaturas Group also owns tour by plane operator Aviaturas Ir Partneriai and tour by bus operator Excursus. Moreover, Novaturas runs subsidiaries in Latvia and Estonia. Consolidated turnover of the group is seen growing by 37.6 percent, to LTL 320 million in 2007.
Verslo Zinios

Tuesday, 17th of July

Nematekas posts sales
Nematekas, the leading Lithuania's meat processing company, posted LTL 58 million in sales for the first half of 2007, a rise of 32 percent from the year-earlier figure of LTL 44 million. The company's exports, mostly to Germany, Ireland and UK, soared by 36 percent, year-on-year, to LTL 13 million, Nematekas said in a statement.

IKI reports sales
Iki, the second-largest Lithuania's grocery chain, reported sales of LTL 1.028 billion in Lithuania and Latvia in the first half of 2007, a surge of 36 percent from the year-earlier figure. The chain opened two Iki outlets and one discount store Leader Price in Lithuania in January-to-June. In Latvia, the company set up one Iki and one Leader Price store in the reporting period. As reported earlier, the grocer has set aside more than LTL 200 million for investments this year. The chain, which currently runs 202 outlets in Lithuania and Latvia, aims to open 44 new stores in two countries this year.
Respublika, Verslo Zinios

Hansabankas posts consolidated sales
Lithuanian financial group Hansabankas posted LTL 188.6 million in preliminary consolidated net profits for the first half of this year, up 95.4 percent from the year-earlier figure of LTL 96.5 million. The bank alone turned LTL 144 million in profit, Hansabankas said in a statement. The Hansabankas Group earlier reported LTL 223.5 million in net profits for the full year 2006.
Respublika, Lietuvos Rytas, Verslo Zinios

Monday, 16th of July

Price differences
According to the data of statistics department Eurostat, the differences between prices of alcohol is more or less alike in all the EU countries, however the prices of cigarettes differ even seven times. The research was done in 37 countries and prices of about 500 products were compared. Non- alcohol drinks and food products are the most expensive in Denmark; while in Lithuania has the smallest prices for these products comparing it with others. Alcohol drinks were the most expensive in Ireland. Prices for tobacco were the smallest in Lithuania, Latvia, Romania and Estonia.

Ukio Bankas presents numbers
Ukio Bankas received 81.4 percent of its planned profit during the fist half-year of 2007. The bank earned LTL 50 million of unaudited net profit during the six months of the year. It is by 3 times more than last year at the same time. Edita Karpaviciene, chairwoman of the board in Ukio Bankas, says that the bank plans to keep the same growing pace during the second half-year. The asset of the bank grew by 22 percent from the beginning of the year. The bank’s asset reached LTL 3.7 billion at the end of June. The new bonds emission of the bank was received a lot of attention from the investors.
Verslo Zinios

Best banks
The international financial publication Euromoney evaluated Hansabankas, Nordea and SEB banks in its annual contest. The magazine acknowledged Hansabankas as the best bank in terms of buying and consolidation sphere, while Nordea group was acknowledged as the best bank in Northern and Baltic countries. SEB group was the best in terms of cash management.
Verslo Zinios

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