Last year, 55.6 million tons of cargo and 17.1 million passengers were transported through the infrastructure of Latvijas Dzelzceļš (LDz). The company’s net turnover was 217.8 million euros, but the profit – 2.1 million euros, the company informed.
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Compared to 2014, the volume of cargo transportation in tons decreased by 2.4%, but the number of transported passengers decreased by 11.2%, while net turnover decreased by 3.1%.
Last year, LDz made a profit of 2.1 million euros after taxes. This is 8.6 million euros less than a year earlier, but it should be taken into account that in 2014 LDz’s profit was significantly affected by the investment of revalued track machines in the share capital of the subsidiary SIA LDZ Infrastruktūra, which was a one-time transaction and was not related to real cash flow. , explains the company. In 2015, there were no such transactions.
The total amount of capital investments made by LDz in 2015 reached almost 217 million euros, which is the largest amount of investments during the existence of LDz. Financial resources are invested in the renewal, modernization, acquisition of fixed assets, intangible investments and construction of new facilities. Sources of capital investments were European Union (EU) funds – 65.8%, state co-financing – 3.6%, as well as own funds and borrowed capital – 30.6%. Within the framework of these capital investments, a number of projects have been implemented: the station “Bolderāja 2” with connecting roads to Krievu sala has been built, Liepāja station signaling system has been modernized with track reconstruction, main data transmission network has been modernized, Šķirotava station sorting hill has been reconstructed resulting in increased speed, safety and improved throughput.
Due to large investments and cash flow of EU funds, the total liquidity of LDz has decreased to 0.3 as of the reporting period. Short-term liabilities include deferred revenue of EUR 16.6 million related to EU projects and state budget investments in public railway infrastructure, therefore the outflow of funds to cover these liabilities is not expected next year.
The company explains that in 2015 the largest amount of capital investments was made during the existence of LDz. LDz will receive the final payment – 32.8 million euros – for EU co-financed investment projects only in 2016. In the first half of 2016, it is planned to recover the invested funds. Had it not been necessary to invest EUR 32.8 million from its own resources, liquidity, excluding deferred income, would have been 1.
The LDz Group consists of the parent company VAS “Latvian railway“and five subsidiaries – JSC” LatRailNet “, which determines the infrastructure charge and allocation of railway infrastructure capacity, SIA” LDz Cargo “, which provides rail freight and international passenger transport, infrastructure construction and maintenance company SIA” LDz Infrastruktūra “, rolling stock repair and maintenance company SIA “LDz Ritošā sastāva serviss”, as well as security company SIA “LDz Apsardze”.
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