Budget, Financial Services, Latvia, Markets and Companies

The Agriculture Ministry explained that low timber prices had had negative effect on the company’s profit last. In view of the need to continue construction of forest roads and renovation of drainage systems and considering overall stagnation in timber product markets, the ministry as the LVM shareholder proposed payment of dividends in two installments. EUR 35 million will be paid by July 1, 2016, and the remaining EUR 17.615 million by December 20, 2016, at the latest.

As reported, LVM posted a turnover of EUR 261.55 million for 2015, down 5% from 2014, and its profit fell 21% year-on-year to EUR 59.3 million.

Last year the company reforested 7,800 hectares of land, renovated 116 kilometers of forest roads and built 173 kilometers of new forest roads. This year reforestation is planned in 15,300 hectares, drainage systems are to be renovated in 15,400 hectares of forest, and 259 kilometers of forest roads are to be built.

LVM manages 1.63 million hectares of state-owned forest land and every year puts on the market 5-7 million cubic meters of timber.

The Agriculture Ministry holds 100% of LVM shares on behalf of the Latvian state.