Jun 22

Baltic Oil Terminals Plc is engaged in the oil and gas infrastructure and port business. Incorporated and registered in England and Wales, the company bases its activities in Kaliningrad, the Russia’s coastal enclave between Poland and Lithuania on the Baltic Sea. The company’s operations are aimed at providing terminal and related services for hydrocarbon product export from Kaliningrad, as well as local distributions within the Kaliningrad region. The company currently have two export terminals, a refined-product storage for local distribution, one waste-disposal facility, and client trading and agency services.

Company shares are listed on LSE’s AIM sub-market and were at 27.50p as of 21 June 2010. The Company’s objective is to generate significant operational cash flows to provide a recurring dividend stream for its shareholders.

Export Terminals

Baltic Oil Terminals Plc has a 50 percent interest in the new Rosbunker terminal. Unlike other terminals in the area that are located inside the city of Kaliningrad, it is outside the city to be closer to the Baltic Sea. The terminal handles mazut, a heavy oil, and diesel using insulated and heated tanks and pipelines. A pair of side tracks connecting to the main railroad has been built and pumping and handling equipment are fully operational. By allowing the docking of oil tankers carrying loads of up to 40,000 tonnes, the terminal becomes the only deep water terminal in the Kaliningrad region.

Additionally, through a Russian company in which Baltic owns 65 percent interest, Baltic also leases an oil and refined product export transhipment terminal from the Russian Naval Authorities. Other than refurbishment, the company intends to rely on the terminal’s existing infrastructure and storage tank capacity. With a throughput rate of around 30,000 tonnes per month, it further increases the company’s planned terminal operations.

Local Storage

The company has a separate storage and terminal facility to handle refined products, namely gasoline and diesel, for local distributions on behalf of third party clients. Products are brought in by rail for storage and later delivered to retail outlets in the Kaliningrad region. The storage has a capacity of about 10,000 tonnes with a throughput of close to 15,000 tonnes per month.

Waste Disposal Facility

The facility was half acquired by the company in 2006, 5 years into the business. It does both marine and land reclaim sludge and waste disposal. Specially converted vessels are used to service the facility.

Trading and Agency Services

Through a 50% owned subsidiary called Baltic Hydrocarbon, the company matches buyers and sellers of oil products without taking open positions itself. The company also acts as an agent to introduce clients to terminals in the region. If clients wish, the company further offers handling service to move products from source to a terminal prior to export and when within the Baltic region, using a charter vessel, the company could as well ship a client’s products to a destination, extending its terminal services offered.

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