Losses of Latvian Railway Group last year

At the same time, LDz’s parent company turnover in 2024 was EUR 155,101 million, which is 6.2% less than in 2023, while LDz losses before financial balance payments increased by 81.4 %% last year to EUR 81.4 million.

Representatives of LDz explain that as the railway cargo continues, LDz is actively working on reducing their main operating costs and reduced by EUR 14.5 million in 2024. At the same time, given the current geopolitical conditions in which a significant increase in cargo volumes cannot be predicted, the value of LDz assets in the infrastructure used in freight has decreased in 2024.

Last year, LDz’s public use infrastructure was used to carry 11,467 million tons of cargo, which is 26.7% less than in 2023 and 19,455 million passengers, which is 13.5%.

Last year, the number of kilometers traveled by trains increased by 3.6%, including technological trains, but without LDz for their own needs. Among them, the number of trains in passenger transport increased by 16.3%and in freight transportation decreased by 22.2%.

LDz points out that, given the decline in freight transport, LDz continued to work on the efficiency of its operations in 2024, reviewing business, organizational and technological processes in order to increase the efficiency of LDz Group’s economic activity and reduce costs, as well as to ensure future competitive and sustainable activities.

Artis Grinbergs, Chairman of the Board of LDz, says that despite the fall of LDz’s revenue, LDz is successfully working on reducing his main business costs. In 2024, the main cost of operating was in fact € 179.2 million, which is EUR 14.5 million less than in 2023, when LDz’s main operating costs were EUR 193.7 million.

He explains that the funds needed to provide financial balance have also decreased, in 2024 it was EUR 27 million – five million euros less than in 2023.

« It should be noted that LDz is one of the most cost -effective railway infrastructure maintainers in Europe – if the average cost of maintaining a single track kilometer in Europe is 117,000 euros per year, LDz is significantly lower – 51,100 euros per kilometer, ranked second in LDz in second place among 20 railway maintainers in Europe. » Grinberg.

The result of the economic activity of 2024, according to financial balance payments, is the loss of EUR 32.84 million. LDz explains that the loss of EUR 31.2 million has a significant impact on the loss. The asset value was reduced in freight transport for the exclusive infrastructure used, especially in the railway sections where there was a significant drop in transport.

According to LDz Financial Director Teresa Labzova -Ceicane, given that in previous periods – by 2020 – significant investments were made in the development of high balance of balance infrastructure – but at the moment, as cargo volumes significantly decreases, this infrastructure is used to minimize. For example, such an object is the connection of the Bolderaja 2 station to the terminals of the Russian island, where cargo circulation has fallen significantly in recent years, but LDz continues to maintain this infrastructure and ensure cargo processing.

Labzona-Ceicane emphasizes that this reduction in assets and related accounting losses does not have a negative impact on the business or the general government sector, as well as the LDz fulfills all the conditions of existing credit and other obligations. Similarly, as the current situation with freight transport changes, the value of these assets may increase again.

« However, if we look at the actual result of the core business, regardless of the reduction in these assets, LDz 2024 has closed almost five million euros better than the previous one. EBITDA – Profit before interest payments, financial balance, taxes and amortization – has been positive with EUR 17.8 million. »

Last year, the turnover of LDz Group was EUR 263,529 million, which is 3.4% more than in 2022, but the Group suffered a loss of EUR 3.231 million. At the same time, the turnover of LDz’s parent company in 2023 was EUR 165.41 million, but the losses before the financial balance amounted to EUR 32.439 million.

LDz is a public railway infrastructure manager and a company LDz ruling company. The Group also includes Latra Hallet, which carries out infrastructure fee and railway infrastructure capacity distribution, LDz Cargo, which provides rail freight transport and international passenger transport, rolling stock repair and maintenance company « LDz rolling stock », security company « LDz security company »