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Latvijas dzelzceļš will not have to pay dividends from last year’s profits

Edvins Berzins/ldz.lv.
The government decided on Wednesday, 16 August, that Latvijas dzelzceļš will not have to pay dividends from last year’s profits, which were EUR 880,998.

The order from the Cabinet of Ministers states that LDz does not have to pay dividends from net profit for 2016. At the same time, Transport Ministry, as a state capital shareholder in LDz, has to ensure the company’s net profit for last year is diverted for the improvement of Latvia’s public railway infrastructure.
 

Cross-Sectoral Coordination Centre has coordinated the order with consideration of LDz’s low liquidity (0.4 at the end of 2016), high proportion of liabilities in the balance sheet (68% at the end of 2016), as well as the need to attract additional funding to realize large-scale infrastructure development projects.
 

LDz President Edvins Berzins said after the government’s meeting – although the amount the government allowed to not be paid as dividends will provide only a small amount of support for infrastructure projects, the decision of the Cabinet of Ministers remains a strong signal of support.
 

According to him, such a step from the government and support for railway infrastructure projects can enhance LDz’s position in talks with banks.
 

He also says the main goal for LDz is not making money, but rather working for the development of the transit industry and national economy.

BNN/LETA

17-08-2017
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