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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 06:42

Latvijas Dzelzcels railway company not to pay dividends from 2015 profit

BC, Riga, 28.06.2016.Print version
Latvian state-owned Latvijas Dzelzcels railway company will not pay dividends into the state budget from profit in 2015, but will spend its profit on infrastructure investment projects, the government decided on June 28th, cites LETA.

As it is necessary to continue investments in infrastructure, the Transport Ministry has asked the government to apply a 0% rate on dividend or leave the profit to LDz for the company's development projects.

 

The ministry explained that Latvijas Dzelzcels is one of the largest tax payers and paid EUR 73.1 million in taxes into the state budget in 2014, and EUR 73.3 million in 2015. In order for the concern to successfully continue operations and attract the necessary financing for the EU projects, the profit should be spent on ensuring the company’s investment plan.

 

Latvijas Dzelzcels closed last year with EUR 2.1 million in profit and EUR 217.8 million in turnover. Last year the company carried 16.9 million domestic passengers, 0.2 million international passengers, and 55.6 million tons of cargo.

 

In 2015 concern had 12,259 employees or 1.38% of all employees in the country.

 

The state-owned Latvijas Dzelzcels group comprises the parent company, Latvijas Dzelzcels, and five subsidiaries: LatRailNet, LDz Cargo, LDz Infrastruktura, LDz Ritosa Sastava Serviss, and LDz Apsardze.

 

During the first quarter of 2016, cargo shipping by rail in Latvia was down to 13 million tons, dropping by 20.6% from the same period a year ago when 16.38 million tons of cargo was carried by rail in Latvia.






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