LTG Group made less profit in 2020, but doubled its investments in future projects

The Lietuvos Geležinkeliai (LTG) Group earned a profit of 36.6 million euros in 2020, which is 21.5 million euros less than in 2019. At the same time, the Group’s investments in key projects doubled and amounted to 228.9 million euros.

LTG Group made less profit in 2020, but doubled its investments in future projects

The holding company will pay dividends of almost 14 million euros to the shareholder of the Lithuanian state AB Lietuvos Geležinkeliai, reports Railway Supply magazine with reference to Lietuvos geležinkeliai (LTG).

“The year was full of challenges – both because of the impact of the pandemic on the Lithuanian economy as a whole, and because of the difficult geopolitical situation. We received less ambitious results at the beginning of last year, but LTG Group was able to adapt, find quick solutions and end the year with positive results, ”says Mantas Bartuška, General Director of Lithuanian Railways.

According to the head of the LTG group, it is important to emphasize that the situation with the pandemic did not prevent the implementation of any of the group’s strategic projects.

VLRD: Modernization of the locomotive of TGM4 series

LTG Group has allocated twice as much funds for investment projects. Investments amounted to 228.9 million euros (112.6 million euros in 2019). 174.1 million and 41.4 million euros were allocated for the renovation and development of infrastructure; 3.9 million euros for the renewal of cargo assets. 9.5 million euros for the renewal of passenger assets.

Last year, passenger transport company LTG Link faced problems due to the pandemic – 3.3 million passengers were transported by local and international trains, which is 40% less than in 2019.

In 2020, railway transportation of grain and fertilizers increased, shipments of wood chips, oil and oil products, and coal decreased. Local grain and fertilizer shipments were the largest in the company’s history.

Meanwhile, according to LTG Infra, which manages the country’s rail network, last year trains traveled 32.6 billion tkm across the entire national network, just 0.3% less than in 2019. This figure shows how many kilometers have been traveled and how much weight the train used for the network.

In 2020, Lietuvos Geležinkeliai implemented a strategically important program to unbundle the company’s activities in the management of freight and passenger traffic and infrastructure. They were split between subsidiaries. They were renamed last July and LTG Group’s transformation program was completed.

The group includes the holding company Lietuvos Geležinkeliai (abbreviated as LTG) and the main subsidiaries – LTG Cargo, a freight company, LTG Link, LTG Infra, which manages the country’s railway network and takes care of its modernization.

In addition, a company of the Lietuvos geležinkeliai (LTG) group (Lithuanian Railways) Vilniaus lokomotyvų remonto depas (VLRD) (Vilnius Locomotive Repair Depot) and the cargo transportation company LTG Cargo have joined forces. As a result, VLRD joins LTG Cargo and will provide rolling stock repair and modernization services on the market under a new trademark – LTG Tech.

Related:

LTG Tech – The largest and most modern rolling stock repair center in the region