Chairman's
letter
Dear reader!
Viru Keemia Grupp demonstrated good production and financial results in 2019. The Group increase shale oil production and achieved a record net profit. That allowed us to face the new challenge of 2020 – the COVID-19 pandemic and the resulting steep drop in demand and oil prices – in a strong financial position.
Corona prevention measures helped us to ensure the protection of employees from contagion and thus the continuation of all the production processes. Thanks to efficient work and timely response, the current situation did not have an extensive effect on our long-term objectives, although it did make some adjustments to short-term investment plans.
Our mission is the valorisation of the most important Estonian mineral resource – oil shale. Last year, we processed five million tonnes of oil shale, producing 659,000 tonnes of oil and phenol products for the world market. In addition, we produced 1 TWh of energy from oil shale gas for the consumers of electricity, district heating and industrial steam. We continue to be the most efficient enterprise adding value to oil shale in Estonia in terms of both the oil shale used per produced commercial oil shale and the CO2 emissions.
Safety and security are a priority for VKG. Already a few years ago, we established a zero goal for ourselves: not one person, the environment and no property must suffer any damage in the course of work. Today, we continue steadfast towards achieving that goal. Our focus is not just on the safety of our own employees – we also work actively with subcontractors in order to bring their attitude towards occupational safety to a new level.
Supporting local initiatives and social projects is an important area through which we contribute to sustainable development. The main aim is to bolster interesting educational, sports and cultural initiatives in the Virumaa region. Last year, we supported more than 35 projects and initiatives with over 145,000 euros.
We are very happy that VKG has team members who are internally highly motivated and share the values of the Group. The contribution of every employee is important for us, and in all our companies we strive to create a work culture and environment in which employees could open their individual potential while working towards common objectives. The Group supports the employees’ aspirations towards individual development and growth.
The company’s success criteria have considerably changed recently. A modern company can no longer focus just on financial and production indicators. This is one of the reasons why we intertwine our activities with the UN Sustainable Development Goals which are aimed at solving global economic, social and environmental problems. Corporate responsibility, transparent activities that place value on security, and the creation of constructive partnership relations with all the stakeholders are principles which fully reflect the Group’s understanding of its responsibility towards the world around us. We would like to thank everyone who contribute to building a sustainable future for the society alongside us.
I hope you enjoy the report!
