(BTC.L) Baltic Oil Terminals PLC Buy/Sell

RNS Number : 9961B Baltic Oil Terminals Plc 05 November 2009

5 NOVEMBER 2009

Baltic Oil Terminals PLC

("Baltic" or "the Group")

Rosbunker Update: Strong Throughput in October

Baltic owns and operates oil product terminals in the strategically vital Russian port of Baltysk, Kaliningrad on the Baltic Sea and through its subsidiaries is engaged in matched refined oil product trading.

Baltic reported at the end of September that trading conditions at the Rosbunker terminal had improved considerably since the summer, with significant throughput of oil products expected during October. Baltic is now pleased to confirm that over a thousand railcar tankers transported oil products to the Rosbunker terminal from sources throughout Russia and the FSU in October. This resulted in over 60,000 tonnes of product being trans-shipped through the terminal, the highest ever monthly volume of product achieved.

Pre-bookings of client product are higher than any previous level achieved at this time of year, even though the Volga River, which competes with the port of Kaliningrad, has not yet frozen, due to the late commencement of winter. When the Volga River closes, Kaliningrad assumes a monopolistic position in the export of oil products through the Baltic Sea.

Enquiries:

Baltic Oil Terminals plc Tel: +44 (0)20 3145 1908

Simon Escott, Chief Executive

Arbuthnot Securities Limited Tel: +44 (0)20 7012 2000

Alastair Moreton, Corporate Finance

Pelham PR
Archie Berens Tel: +44 (0)20 7337 1509 / +44 (0)7802 442486

About Baltic Oil Terminals

Over the last four years, Baltic has built up a terminals business in the Russian ports of Baltysk and Kaliningrad. A separate enclave located between Poland and Lithuania, Kaliningrad is Russia's only year round access to the Baltic Sea. Other ports in the region, such as St Petersburg, are frozen for much of the winter, as are many rivers, including the Volga River, one of the most significant commercial waterways in the world. As Russia relies on year round export of its vast supplies of petroleum products, Kaliningrad is thus a trading centre of major strategic importance.

Baltic's key asset is a 50% interest in the Rosbunker terminal, which is located at Baltysk, right on the Baltic Sea at the mouth of the Pregol River leading into Kaliningrad. It is the only port in the region at which all types of ship can take on cargo, as the channel into Kaliningrad is too shallow for many vessels. Trains are able to deliver products from all over Russia, the Former Soviet Union and Asia directly to the terminal.

Since 2007, the Rosbunker terminal has been handling consignments of oil refined products, specialising in fuel oil (mazut), a product that requires heating and special equipment and as such is not handled by other terminals in the area. Baltic earns tolling fees for processing the unloading of cargo from trains into storage tanks and then onto vessels. Baltic is also able to trade in these products in its own right, taking advantage of local price differences. Since the financial crisis in Russia, this market has become increasingly interesting to Baltic. Baltic's transportation and trading activities utilises its extensive network of industrial partners and refineries.

In addition to Rosbunker, Baltic also has interests in several other oil product assets in Kaliningrad, which derive revenues through processing and distribution of oil products to domestic markets.

Baltic's executive management have a wealth of experience of the oil services industry. The team has worked in the industry for more than 40 years, constructing and operating oil rigs, terminals and other infrastructure in world wide locations, including the Former Soviet Union.

Baltic has been listed on AIM since May 2006. It is headquartered in Kaliningrad, with a small representative office in London.

This information is provided by RNS The company news service from the London Stock Exchange

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