Despite the geopolitical developments and the ensuing sanctions’ impact on the freight transportation industry in the entire region last year, SJSC “Latvijas dzelzceļš”, by actively diversifying freight segments and expanding into new target markets, was able to achieve almost the same freight transportation volume as in 2021 as the amount of freights shipped by the company decreased only 1.7% last year.
In 2022, a total of 21.59 million tonnes of freight were transported by rail, which is 375,000 tonnes or 1.7% less than in 2021. LDz achieved this by working on diversification of freight segments, securing new contracts, as well as developing new services in order to make up for freights that had been declining in the past few years and were compounded by restrictions on cooperation with countries to the east of Latvia introduced as a result of international sanctions.
One of the most important performance indicators for SJSC “Latvijas dzelzceļš” is the number of train-kilometres, which is the basis for calculating charges for infrastructure costs and determines depreciation of the infrastructure. Last year, the total number of train-km increased by 0.7% compared to 2021, including a 4.1% increase in passenger transportation and a 3.8% decrease in freight transportation.
Positive trends were observed in passenger transportation by rail in 2022 as the number of passengers gradually began to approach the pre-pandemic level. In 2022, a total of 15.7 million passengers were carried by rail, which is 40% more than in 2022 when 11.2 million passengers travelled by train, and this trend is expected to continue in the future.
SJSC “Latvijas dzelzceļš” Chairman of the Board Rinalds Pļavnieks: “One of the priorities of SJSC “Latvijas dzelzceļš” this year will be to continue to diversify and increase freight transportation volumes in the available segments, as well as to improve and develop commercial functions by improving quality of customer service and expanding the range of services offered by the company. As for passenger transport, a significant increase in the number of passengers is expected in the next twelve months, which will be facilitated by completion of several important LDz infrastructure projects – increasing the speed of passenger trains on several rail lines, modernization of passenger platforms, and others. Together with new rolling stock that will start running on LDz infrastructure this year, these projects will achieve that residents are provided quality service, promote the popularity and competitiveness of railways. This direction and pace of development, ensuring increasingly more convenient, safer and more accessible rail transport across the country, is also expected to continue in the future.”
Net turnover of SJSC “Latvijas dzelzceļš” decreased by EUR 4.55 million or 2.9% to EUR 153.16 million last year. Leaving out of account financial balance payments from the state budget that were attributed to revenues in 2021 and 2022, the company’s turnover in 2022 actually increased by EUR 1.75 million or 1.4% from 2021.
In 2022 SJSC “Latvijas dzelzceļš” performance for the year was 0. To ensure its financial stability, SJSC “Latvijas dzelzceļš” required EUR 24.36 million as the state public use railway infrastructure manager specified in the laws and regulations. This amount has been included in the 2022 income, according to the International Financial Reporting Standards guidelines, and will be requested after the approval of the company’s annual report. The amount of the financial balance in 2022 is EUR 6.3 million or 21% less than in 2021.
Consolidated revenue of the Group amounted to EUR 254.79 million in 2022, which is EUR 5.6 million or 2.3% more than in 2021. Revenue from freight transportation, which made up the most significant part or 49.4% of the Group’s consolidated net turnover, increased by EUR 3.48 million or 2.8% as compared to 2021.
Companies of Latvijas Dzelzceļš Group made a profit of more than EUR 5 million in 2022, however, following consolidation adjustments for dividends paid by the Group’s subsidiaries and a profit resulting from liquidation of “LDZ Infrastruktūra” Ltd., losses of Latvijas Dzelzceļš Group amounted to EUR 2.37 million in 2022.
In 2023, SJSC “Latvijas dzelzceļš” will continue work on all the key operational priorities of the company, including implementation of several important infrastructure development projects. By the end of 2023, passenger platforms at 48 railway stations and stops will be modernized or rebuilt, train speeds will be increased to up to 140 km/h on railway sections over 100 kilometres long, and construction of safety fences over 20 kilometres long will be completed. By end-2023, modernization of Sarkandaugava – Mangaļi – Ziemeļblāzma section of Riga railway hub will also be completed, which will significantly improve the level of traffic safety and improve quality of life and mobility of local residents, as well as reduce the risk of environmental pollution.
The 2022 annual report of SJSC “Latvijas dzelzceļš” is available here: https://www.ldz.lv/lv/neauditeti-starpperiodu-finansu-parskati