FINANCIAL RISKS

The Company increases and expands its business activities by attracting equity and borrowed funds to that end. A major proportion of the Company’s gross revenue is attributable to an export of oil and petroleum products. Consequently, any foreign exchange fluctuations affect the operating results of the Company, which is a foreign exchange risk factor. The Company’s foreign exchange risk is considerably reduced due to expenses and costs in foreign currencies and loans that are also repayable in US dollars.