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Lithuania Business News: Archive 2003-

WEEK 35.2007

Saturday, 1st of September

Rokiskio Suris intends to buy its shares
Rokiskio Suris (Rokiskis Cheese) Group, the leading Lithuania's dairy group, intends to buy up to 5.96 percent of its own shares. If Rokiskio Suris would manage to obtain the maximum number of shares during the official offering, the company should pay LTL 16.551 million for them. On Friday, the price for nominal value share in the market was LTL 69. In 2006 the audited consolidated net profit of the group plunged by 38 percent, to LTL 13.021 million, from LTL 21 million in 2005, as the sales rose by 9.5 percent, to LTL 518.144 million.
Lietuvos Rytas

Utenos Trikotazas wins Austrian tender
The company Utenos Trikotazas opened its way to Austrian market. Utenos Trikotazas won the tender, which was arranged by Austrian Internal Affairs Ministry, and is going to produce shirts for the police officers of Austria. The first consignment of shirts will go to Austria at the beginning of this November. 80 percent of shirts are meant for male police officers. Saulius Rubenas, head of Marketing Department in Utenos Trikotazas, said that the company won the tender as the quality of its production was evaluated as the most suitable; moreover the offered price by Utenos Trikotazas was the smallest. There were other nine companies which participated in the tender together with Utenos trikotazas.
Lietuvos Rytas

Gazprom calms down Lithuania
Sergej Kuprijananov, press representative of the Russian monopolist Gazprom, stated that Gazprom had no intentions to make any significant changes for Lithuanian gas market. The Prime Minister Gediminas Kirkilas has repeatedly claimed that Russia was going to increase natural gas prices for Lithuania from current USD 190 up to USD 312-320 per thousand cubic metres last week. Moreover head of Lietuvos Dujos (Lithuanian Gas) Viktoras Valentukevicius has also claimed that gas prices would considerably increase next year. Meanwhile, Kuprijanov has explained that the prices would be corrected according to the global markets in Lithuania. Lithuanian specialists forecast that Lithuania should expect USD 250 per thousand cubic metres for gas, if there are no big global events or any other major incidents in the global market in the meantime.
Kauno Diena

Friday, 31st August

Mazeikiu Nafta closes for repairs
Mazeikiu Nafta (Mazeikiai Oil), the sole Baltic crude refining and transportation complex controlled by Poland's PKN Orlen, will shut down for approximately 1.5 months of repairs on September 22. The costs of repairs would reach some USD 80 million since the works would include the replacement of some outdated installations, Marek Mroczkowski, Mazeikiu Nafta CEO, said after the meeting with Prime Minister Gediminas Kirkilas on Thursday. A large vacuum column, which was damaged during last year's fire, had already been restored and was expected to be launched in the fourth quarter of 2007, he said adding that Mazeikiu Nafta would then resume operations at full capacities. About 4,000 employees would take part in the repairs of the refinery, Mroczkowski said adding that some 1,600 people would be Lithuanian staff and the remaining workforce would arrive from abroad, mostly from Poland.
Respublika, Kauno Diena, Lietuvos Zinios, Lietuvos Rytas

Construction prices in Lithuania surge
Construction prices in Lithuania surged by 14.1 percent in July compared with the same period a year ago, the Statistics Department reported. Construction costs increased by 1.1 percent in July versus June. The rise in construction prices was the result of 1.4 percent increase in wages and overhead costs, as well as a 0.9 percent rise in prices of construction materials and products in July, the department said. Lietuvos Zinios, Lietuvos Rytas

Lithuanian Post increases prices from September
The prices for services of Lietuvos Pastas (Lithuanian Post) will considerably increase from Saturday. The prices for services in Lithuanian Post have not changed for almost 7 years. The price for ordinary letter will cost LTL 1.35 although it used to cost LTL 1 previously. Moreover, the price for letter with priority sign will increase up to LTL 1.55. The price for letters, which will be sent to foreign countries, would increase up to LTL 2.15 if it is sent to the EU countries, if not, then the price might rise up to LTL 2.45. The ones who wish to send a package, which weighs up to 50 grams will pay LTL 1.45, while a hundred-gram parcel might cost LTL 1.55. The prices for parcels with priority signs will cost even more for the clients of Lithuanian Post.
Lietuvos Rytas, Verslo Zinios

Thursday, 30th of August

Statoil buys 42.5 percent of Mestilla
Norway's oil giant Statoil is buying 42.5 percent of Mestilla, a company building the largest Baltic bio diesel plant close to Klaipeda, from SEB VB Rizikos Kapitalo Valdymas, the risk capital management subsidiary of SEB Vilniaus Bankas, for an undisclosed amount. The representatives of Statoil would participate in the management of Mestilla, it was said that the parties concerned had already discussed the management functions. Mestilla's plant intends to launch the production of bio diesel later this year. The annual output is expected to grow to 200,000 tons per year. Mestilla aims to cover 13 percent of diesel demand in Lithuania. Until 2007, the list of Lithuania's bio fuel producers included two companies - Rapsoila and Biofuture. Three more companies - Leo ir Co, Suduvos Biokuras and Bioetan LT - intend to kick off the production of bioethanol.
Verslo Zinios

Gas’ prices bubble in Lithuania
Lithuania's gas importers, including Lietuvos Dujos (Lithuanian Gas), Dujotekana, Haupas and Achema, have reportedly claimed that Lithuanian residents should not worry about the rising gas prices. The companies said that the Prime Minister Gediminas Kirkilas’ opinion about it is too exaggerated. The gas importers do not believe the latest news that Russia's gas giant Gazprom is about the rise in natural gas prices in 2008. Currently, it was announced that the price would grow to some USD 280 per 1,000 cubic meters, from current USD 200. The gas importers have never received such news directly from Gazprom, the only thing that Russia’s monopolist have send them is the new formula how gas price would be counted next year. Lietuvos Zinios

Integrity PR reports numbers
The net profit of the agency Integrity PR, which is responsible for public affairs, has increased by 2.7 times up to LTL 322.800 comparing it with 2005. The agency’s sales have risen by 1.9 times up to LTL 2.507 million. Integrity PR forecasts that its turnover this year might jump by 10 percent. Integrity PR, which is owned by Arunas Pemkus, is one of the biggest public affairs agencies in Lithuania and makes it to the top-ten of Lithuanian public affairs agencies.
Verslo Zinios

Wednesday, 29th of August

Scaent Baltic acquires majority holding in Lithuanian Energijos Realizacijos Centras
Scaent Baltic, a Lithuania-based subsidiary of Sweden's energy company Scaent, has acquired a majority holding in Lithuanian electric energy trader Energijos Realizacijos Centras (ERC) for LTL 80 million. The transaction ended one scheduled stage of company's development in Lithuania, Scaent director for trade Magnus Astrom said in a statement. "Optimization of electric energy trade in the Baltic region will enable Scaent to meet the needs of Lithuania's economy in electric energy in a more effective way and ensure the stability of supply," Astrom noted.
Respublika

Lithuanian GDP grows
Lithuania's gross domestic product grew by 8 percent in the second quarter of this year compared with a year earlier, to reach LTL 23.731 billion, the Statistics Department reported in its second GDP estimate. The department adjusted the first GDP estimate of LTL 23.763 million slightly lower following the assessment of GDP components by production, costs and income methods. The growth was propelled by a 17.3 percent surge in construction, 10.7 percent growth in retail, hotels and restaurants, transport and communications segments, and a 8.8 percent increase in financial mediation, real estate and other businesses, the department said in a statement.
Lietuvos Zinios, Verslo Zinios

Lithuania’s EMP Recycling reports numbers
Lithuania's EMP Recycling, the leading Lithuania's recycler of electronic and car waste, reported LTL 47.6 million in the first half of 2007, a surge of 57 percent from the year-earlier figure of LTL 30.4 million. The company attributed the rise in sales to the application of innovative solutions for the development of electronic waste collection system. EMP Recycling collected and recycled 3,143 tons of electronic waste, in January-June. The company aims to recycle some 6,000 tons of electronic waste by the end of the year.
Verslo Zinios

Tuesday, 28th of August

FlyLAL’s plans for future
FlyLAL-Lithuanian Airlines, the Lithuanian-equity air company, aims to regain the lead on Lithuania's market in 2008. Former leader of Lithuania's flight market succumbed to rivals after the privatization in 2005 and repeated change of owners. "The main our objective is to regain the leading positions next year," Tadas Puksta, FlyLAL-Lithuanian Airlines deputy CEO, said during a news conference on Monday.
The plan was ambitious, and the company aimed to implement it by the end of 2008, he added. The carrier would probably cut the losses by half in 2007. Next year the company might break even or even turn some profit, Puksta said.
Meanwhile, FlyLAL-Lithuanian Airlines gears up to open a winter season on October 28. The winter schedule of the carrier will include new flights to Malaga, Rome, Lyon and Innsbruck, as well as more frequent flights to Tallinn and Kiev.
Kauno Diena, Verslo Zinios, Lietuvos Rytas

Gross earnings rise by 20.2 percent
Average monthly gross earnings (excluding sole proprietorships) rose by 20.2 percent in Lithuania in the second quarter of this year from a year earlier to reach LTL 1,826.3 the Statistics Department reported. The average net salary soared by 27.6 percent, year-on-year, to LTL 1,368.6 in the reporting period. Real wages in the entire economy (excluding sole proprietorships) grew by 21.8 percent from a year earlier. The growth rates were 18.4 percent in the public sector and 24 percent in the private sector. The average monthly gross earnings in the private sector increased by 22.7 percent, to LTL 1,814; while in the public sector the rise was 16.5 percent, to LTL 1,847.3. The net wages soared by 30 percent, to LTL 1,360 in the private sector and by 24.1 percent, to LTL 1,383.3 in the public sector.
Lietuvos Zinios, Verslo Zinios, Lietuvos Rytas

Grigiskes reports pre-tax profit
Grigiskes, the largest Lithuania's hardboard and toilet paper manufacturer, reported LTL 3.1 million in consolidated pre-tax profit for the first seven months of 2007, a plunge of 20.1 percent versus the year-earlier figure. The sales of the group, which also includes the Baltwood subsidiary, rose by 15.8 percent, to LTL 79 million, Grigiskes said in an earnings statement to the Vilnius Stock Exchange For full 2007 the group is projecting a 32.5 percent rise, to LTL 159 million, in sales, pre-tax earnings of LTL 9 million and the net profit of LTL 6.9 million.
Verslo Zinios

Monday, 27th of August

Lithuanian Sea Shipping company posts numbers
The company Lietuvos Juru Laivininkyste (Lithuanian Sea Shipping company) earned LTL 8.557 million of net profit during the first half year, according to the unaudited data. Last year the company earned LTL 12.6 million during the same period. The sales revenues of the company have also decreased this year, the revenues stood at LTL 47.258 million during six months of the year.
Respublika

Production in Lithuania incnreases
Comparing the first 7 months of this year with the same period of 2006, it might be said that the entire industrial production in Lithuania increased by 2.6 percent. According to the Statistics Department, the manufacturing production increased the most, by 4.8 percent. The production in mining exploitation rose by 2.2 percent, while the entire industrial production increased by 12.2 percent comparing this year’s July’ s indicators with last year’s July. Nonetheless, the supply of electricity, gas and water decreased by 3.9 percent.
Verslo Zinios

Economic condition in the Baltic States
The German investors working in the Baltic States evaluated Estonian economic condition the best, while Lithuania and Latvia lag behind a lot. Nonetheless, Lithuania is the only country among the three States, which was evaluated better than last year by the investors. 52 percent of questioned German investors claim that Lithuanian economic condition is good, 48 percent of them think that the condition is satisfactory. There were no one among the German investors who said that Lithuanian economic
Verslo Zinios

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