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International Internet Magazine. Baltic States news & analytics Wednesday, 16.01.2019, 13:07

Revenue of Ossinovski's Latvian train repair plant climbs 45% in 9 months

BC, Riga, 23.11.2017.Print version
The Daugavpils Lokomotivju Remonta Rupnica (Daugavpils LRR) train engine repair group, the core owner of which is Estonian businessman Oleg Ossinovski, has posted a revenue of 16.2 million euros for the first nine months of 2017, marking an increase of 44.8% over the same period last year, informs LETA.

The group's loss contracted 18% year on year to 2.0 million euros, according to the unaudited report submitted to Nasdaq Riga.


The management said in the report that during the accounting period the group exported its products to eight countries. Nine-month exports totaled 14.7 million euros, a 2.4-fold increase over the same period a year ago. The main export markets in the first nine months of 2017 were the EU member states Estonia, Lithuania, Poland and Finland, as well as non-EU countries Russia, Belarus, Kazakhstan and Uzbekistan.


The management said that the loss was attributable to the reduction in workload in the first quarter. Workload was sufficient in the second and third quarters, but delayed deliveries of components hampered works. At present, the company is operating at full capacity.


On Oct. 23, 2017, OU Lokomotiiv Investeeringud, a shareholder of Daugavpils LRR, made the mandatory share redemption offer on the shares of DLRR. The offer has been made in accordance with a decision of the Financial and Capital Market Commission from Oct. 17, 2017. The price per share under the offer is 0.44 euros.


The offer made by OU Lokomotiiv Investeeringud will not have any impact on the employment policy of Daugavpils LRR. The employees of Daugavpils LRR will maintain their work places in accordance with the concluded employment agreements.


Moreover, this offer will not have any impact on the business strategy of Daugavpils LRR, as well as the fulfilment of the future plans. There are no decisions to change the business profile or the location of the company, the management said.

The share redemption offer is valid as of the next working day after its publication in the official newspaper Latvijas Vestnesis.


The duration of the offer is 30 days.


Daugavpils LRR shares are traded on the Nasdaq Riga Secondary List.


The largest shareholders of DLRR is the Estonian company Skinest Rail with a holding of 47.97% of shares and the Estonian company Spacecom, part of the Russian Severstaltrans group, with 25.27%.

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