Wed 15 Jun 2011, 10:01 GMT

Baltic Oil shares suspended, accounts 'destroyed or removed'


Terminal operator says an attempt was made to replace financial records with falsified information.



The board of Baltic Oil Terminals Plc has today announced the suspension of trading in its ordinary shares on AIM - the London Stock Exchange’s international market for smaller growing companies - as it has now become clear that the company will not be in a position to send its audited accounts for the year ended 31 December 2010 to shareholders by 30 June 2011 as required under AIM Rule 19.

The suspension, which commenced at 7.30a.m. today, will remain in place until the group's annual accounts have been announced and posted to shareholders.

Commenting on its operations, Baltic Oil Terminals said its businesses were performing 'in line with management's expectations'.

"The company's operation in Rotterdam is 100 per cent let and generating significant cash returns. As at 13 June 2011, the group had GBP 1.875 million in cash and, apart from normal trade creditors, has no bank or other debt arrangements. The group's financial position remains robust and its operations continue to generate cash in line with management expectations," the company said in a statement.

In early 2011 the company made significant changes to the senior management team at its operations in Kaliningrad, Russia, which included the dismissal of a senior employee. Following these changes Baltic Oil Terminals says it became clear that some of the local financial records had either been destroyed or removed and an attempt made at replacing these with falsified information.

"The directors do not believe that these actions have led to any previous financial information reported to the market proving erroneous, however, the company has had to conduct an exercise to reconstruct the accounting records at its operations in Kaliningrad based on primary sources of information, in particular the receipts of inventory received into the terminals," Baltic Oil Terminals said.

The board of directors had expected that this process would have been completed by now. However, they are now of the view that this process, and hence Grant Thornton's audit of the Annual Accounts, will now not be completed by 30 June 2011.

"Following receipt of the initial results of the reconstruction of these accounting records, the directors remain of the view that the results for the year ended 31 December 2010 will be in line with market expectations. It is believed that the trading performance and financial position of the operations in Russia are not matters of uncertainty; rather it is the detail of the books and records and their current ability to be audited that is the issue," Baltic Oil Terminals said.

A further announcement on the matter is expected to made in due course.


Type Approval from RINA for Methanol Superstorage. SRC Group’s Methanol Superstorage has received RINA Type Approval  

Space-efficient fuel tank system has gained formal certification, enabling methanol adoption without sacrificing storage capacity.

AiP handover ceremony for methane oxidation catalyst system. MHI Marine Machinery and Mitsubishi Shipbuilding receive AiP for methane oxidation catalyst system  

ClassNK approves basic design of LNG engine exhaust treatment system achieving over 90% methane oxidation.

CMA CGM Esmeralda naming ceremony. CMA CGM names 15,000-teu methanol-powered container ship in Shanghai  

The CMA CGM Esmeralda has been deployed on the REX2 service.

DNV and the Singapore Institute of Technology (SIT) signing. DNV and Singapore Institute of Technology partner on remote vessel operations research  

Agreement focuses on shore-based control centres for bunker vessels and autonomous maritime capabilities.

Grande Inghilterra naming ceremony. Grimaldi takes delivery of eleventh ammonia-ready car carrier  

Grande Inghilterra features solar panels, lithium batteries and cold ironing capability.

Launching ceremony of Bisan Maru vessel. Japanese tugboat to feature biofuel blender and ultrasonic anti-fouling system  

Seagate Corporation’s Bisan Maru is the first Japanese tugboat to feature both environmental technologies.

Hercules Elisabeth vessel. Hercules Tanker Management deploys second Ultra-Spec vessel to the Mediterranean  

HTM Elisabeth arrived in Gibraltar carrying biofuel cargo from Thailand bound for Barcelona operations.

Carrier deck view. Wärtsilä to supply ammonia fuel systems for Navigator Gas and Amon Maritime carriers  

Finnish technology group wins contract for cargo handling systems on two dual-fuel ammonia vessels.

Svitzer Balder vessel. Battery-methanol harbour tug completes sea trials ahead of Gothenburg deployment  

Svitzer Balder is claimed to be the most powerful electric escort tug in the world.

Launching ceremony of Nave Orbit vessel. Changhong International launches fourth LR2 tanker for Navios  

Chinese shipbuilder floats 115,000-tonne LR2/Aframax product tanker with methanol and LNG conversion capability.