Baltic Oil Terminals turns cash flow positive as oil shipments recover

Baltic Oil Terminals (AIM: BTC) said its performance in the second half marked a significant improvement over the first half of the year expecting to see what it said would be a substantial reduction in losses in its full year results for 2009.

The company said it was confident about 2010 as the Rosbunker terminal has been operating at full capacity since the end of 2009 after throughput steadily increased over the final quarter of the year. Rosbunker’s activity is expected to be supplemented by additional volumes generated by the trading of subsidiary Baltic Hydrocarbons after the end of the winter trading period.

Baltic Oil said the JV (joint venture) between Baltic Hydrocarbons and Exoy A.G. performed well as its offices in the Russian port city of Novorossiysk were fully operational, significantly contributing to the group’s revenues. The group is now cash flow positive after decreasing cash burn in 2009.

The board has also responded to media speculation alleging that operational issues at the terminal have led to a backlog of oil products, saying such reports were “exaggerated and mistakes,” while noting that suggestions of a backlog only confirmed that Rosbunker was operating at full capacity.

The allegations are currently being investigated by Baltic Oil, which said that previous media reports of this kind were proven unfounded.

“The progress we have made and the positive outlook suggests we have turned the corner. Trading conditions and overall sentiment in the markets in which we operate are increasingly favourable.  With our terminals businesses performing strongly and the additional contribution of our trading joint venture, our prospects for 2010 are encouraging,” said Chief Executive of Baltic Oil Terminals Simon Escott.

http://www.proactiveinvestors.co.uk/companies/news/13314/baltic-oil-terminals-turns-cash-flow-positive-as-oil-shipments-recover-13314.html