baltic oil terminals plc  
annual re port 
and accounts 2007
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Summary:
 02
baltic oil terminals plc annual report and accounts 2007
baltic has evolved from 
being a project startup 
company to becoming 
an operating hydrocarbon 
transhipment business 
with tangible assets 
and revenues
introduction
2007 has been a transformational year for baltic as its 
acquisition of a 50 share of the new rosbunker terminal 
which completed in january 2008 has enabled the company 
to make significant progress towards its goal of becoming the 
largest oil terminal and infrastructure company in kaliningrad 
the acquisition has presented baltic with an unrivalled platform 
for the expansion of its business and the opportunity to develop 
the only deepwater terminal in the region 
importantly rosbunker is already fully operational and 
generating cash flows baltic has evolved from being a project 
startup company to becoming an operating hydrocarbon 
transhipment business with tangible assets and revenues
furthermore the company has commenced blending operations 
in 2008 and intends to further optimise profit by sourcing some 
of the hydrocarbon products from minirefineries in which baltic 
will have entered into partnership agreements this means that 
the business emphasis has shifted from a focus on mainly 
throughput volumes to the optimisation of a wider range 
of profitable revenue streams
review of opera tions
the rosbunker terminal is a brand new facility for the 
transhipment of hydrocarbon product situated on a four 
hectare site in the port of baltysk and close to the open sea 
the terminal has following completion of the first phase of the 
development seven tanks in place with a capacity of 34000 
cubic metres which should enable a throughput of up to 
100000 tonnes per month currently the throughput mostly 
comprises mazut which attracts a higher throughput tariff 
because it requires specialised handling and heating 2008 will 
see the development of the remainder of the site with the 
planned addition of a further 80000 cubic metres of larger 
tanks and the dredging of the short distance to the main 
channel enabling much larger vessels to be loaded 
chairman’s st atement
summary of chairman’s st atement
acquisition of rosbunker terminal
rosbunker is fully operational and generating 
cash	flows
the business emphasis has shifted from a focus 
on mainly throughput volumes to the optimisation 
of	a	wider	range	of	profitable	revenue	streams
“
”
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baltic oil terminals plc annual report and accounts 2007
“ the rosbunker terminal will become the only deepwater large 
vessel terminal in kaliningrad and the board therefore looks to 
the future with confidence”
the intention is that this will be principally for lighter product 
with a quicker turnaround increasing utilisation of the tanks 
having acquired an initial 25 interest in the rosbunker 
terminal in july 2007 for a cash consideration of £44 million 
the additional interest to take baltic to 50 was acquired from 
rosbunker’s original owner and founder mr vladimir gavrilov 
for a combination of £15 million in cash and 4337625 shares 
in baltic in january 2008 the remaining 50 of rosbunker 
is owned by krutrade an austrian subsidiary within the 
kuzbazresregol group russia’s largest domestic coal exporter 
since july 2007 baltic’s management has been heavily involved 
in developing the logistics and working practices of the terminal 
to improve its efficiency the terminal is already generating 
revenue from phase one and is run as a joint venture operation 
with krutrade
we stated in september 2007 that following the decision to 
acquire our interest in rosbunker it would not be in shareholders’ 
interests to build a competing terminal business in kaliningrad 
given its location and operational qualities rosbunker represents 
a significant commercial threat to the tetoil terminal business 
at rybachiy accordingly we will instead use the infrastructure 
at rybachiy for other hydrocarbonbased activities 
in kurgan baltic complied with its licence requirements by drilling 
two exploration wells to a maximum depth of 2400 metres 
well results identified several hydrocarbon baring horizons 
and a further study by rps has been commissioned to assist full 
evaluation of the exploration acreage the board has resolved 
however to attract third party interest to unlock the potential 
value that baltic has in those licences accordingly baltic will 
now focus in future on its infrastructure and trading businesses 
going forward
management
with regard to baltic’s management team there have been 
some changes we welcomed vladimir gavrilov to the board on 
15 january 2008 vladimir has been instrumental in developing 
rosbunker to date and we believe he will play an equally important 
role in its future expansion as a result of the decision to move 
the corporate aspect of our business to kaliningrad under the 
same roof as our operations our finance director and company 
secretary robert wilde will be leaving the company we would 
like to express our gratitude to robert for all his hard work and 
commitment that helped the company through its ipo and 
subsequent growth we wish him well for the future robert 
will be replaced by roman niewiadomski who joined the 
company in february 2008 roman will assume responsibility 
for the finance function of the group and company secretary 
and will be principally based in kaliningrad 
in conclusion 2007 has been a highly significant year for the 
company baltic is now well placed to capitalise on the much 
better platform it has created in baltysk the rosbunker terminal 
will become the only deepwater large vessel terminal in kaliningrad 
and the board therefore looks to the future with confidence 
i would like to thank all of the staff for their hard work which 
has now so well positioned the company for long term growth
philip dayer
non‑executive chairman
9 april 2008
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