Latvian state-owned railway company Latvijas Dzelzcels (LDz) will not pay dividends to the state budget from the profit of 2016, but will spend its profit on infrastructure investment projects, following the Cabinet of Ministers’s decision. The Transport Ministry as the shareholder of LDz had been ordered to ensure that the company’s net profit is spent on implementation of public railway infrastructure projects.
Even though the sum that the company does not have to pay in dividends is just a small contribution to the infrastructure projects, it is a significant support signal from the government, which will improve LDz’s position in negotiations with the banks, Latvijas Dzelzcels president Edvins Berzins said. Latvijas Dzelzcels last year generated EUR 192.572 million in sales and earned EUR 880,998 in profit.
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