The Ventspils Nafta terminal in Ventspils, Latvia was first constructed in 1961 and continues to handle primarily Russian crude oil and petroleum. Photo by Pēteris Nukša.
RIGA — Shareholders of the joint-stock company Ventspils Nafta decided to pay more than 50 million lats (71 million euros) in dividends Thursday.
This would be the first dividend payment since 2003. The decision was taken at least partly because next year income from dividends would be taxed by 10 percent, or even with 15 percent.
The decision during an extraordinary meeting was taken unanimously by shareholders who represent almost 90 percent of Ventspils Nafta capital, which is over 100 million lats (€142 million).
“The fact that today shareholders had the opportunity to adopt a resolution on payment of dividends confirms that joint-stock company Ventspils Nafta has successfully accomplished the main task — ensuring return of investments,” Olga Pētersone, the president and chair of the management board for Ventspils Nafta told the local press.
According to the decision, shareholders will get 0.48 lats (€0.68) per share on the Dec. 10. Dividends will be paid for all the shares that are bought until Dec. 1.
In 2003 the dividends were 1 santim per share, and in 1998 and 1999 3 santims per share. The fact that the dividends will be hastily paid out in December means that Latvian state will not get at least 5 million lats (€7 million) in capital income tax.
After the news about dividend payment came out, the price of Ventspils Nafta shares rose by 4.17 percent and reached the highest level this year, 1.5 lats (€2.1) according to information from NASDAQ OMX Riga stock exchange.
Almost 48 percent of Ventspils Nafta shares belong to the Cypriot company Euromin Holdings. And only a minority, less than 15 percent belongs to small shareholders. In the mid-90s Ventspils Nafta shares could be bought by private individuals using privatization certificates.
Ventspils Nafta Group is working with transshipment of crude oil and petroleum products, transport of crude oil and petroleum products by pipelines, as well as shipping business.
