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The LTG Group earned less profit last year, but doubled its investments for future projects

Lietuvos Geležinkeliai (LTG) Group earned a profit of EUR 36.6 million in 2020, which is EUR 21.5 million less than in 2019. Meanwhile, the Group's investments in key projects doubled to EUR 228.9 million.

The holding company will pay almost EUR 14 million in dividends to the shareholder of AB Lietuvos Geležinkeliai – the State of Lithuania.

"The year was full of challenges – both due to the impact of the pandemic on the Lithuanian economy as a whole and due to the difficult geopolitical situation. Analyzing the impact of the pandemic on our business, we saw such results as ambitious at the beginning of last year, but the LTG Group was able to adapt, find quick solutions and end the year in a positive mood," says Mantas Bartuška, General Director of Lietuvos Geležinkeliai.

According to the head of the LTG Group, it is important to emphasize that the pandemic situation did not hinder the implementation of any of the group's strategic projects.

"All the main group companies laid important foundations last year – the infrastructure manager LTG Infra started the Vilnius-Klaipeda electrification project, the passenger transportation company LTG Link – which was greatly affected by the pandemic – took over the purchase of new ecological electric trains, and the freight company LTG Cargo successfully followed the path of business diversification and established subsidiary companies in other European countries," says LTG CEO Mantas Bartuška.

The LTG Group allocated twice as much funds to investment projects – investments of the entire group in 2020 amounted to EUR 228.9 million (EUR 112.6 million in 2019). EUR 174.1 million was allocated for the renewal and development of the infrastructure, EUR 41.4 million for the renewal of freight assets, EUR 3.9 million for the renewal of passenger transportation assets, and EUR 9.5 million for other investments.

Last year the passenger transportation company LTG Link faced challenges due to the pandemic – 3.3 million passengers traveled by local and international trains – 40 percent less than in 2019. Last year the cargo transportation company LTG Cargo transported 3 percent less cargo – a total of 53.4 million tons. Shipments of grain and fertilizers grew the most, while shipments of wood chips, petroleum and its products as well as coal decreased. The volumes of local transported grain and fertilizers were the largest in the entire history of the company's activity.

Meanwhile, LTG Infra, the manager of the national railway network, calculates that trains covered 32.6 billion tkm in the entire country's network last year, which is only 0.3 percent less than in 2019. This indicator describes how many kilometers were covered and what weight the trains used in the Lithuanian railway network.

In 2020, Lietuvos Geležinkeliai implemented a strategically important separation programme – the company's freight, passenger transportation and infrastructure management activities were separated into different subsidiaries. In July last year, they were given new names and thus the LTG Group transformation programme was completed.

The Group consists of the holding company Lietuvos Geležinkeliai (LTG for short) and the main subsidiaries: LTG Cargo – a freight company, LTG Link – a passenger transportation company, LTG Infra which manages the country's railway network and takes care of its modernization.

LTG Group results

 

2020

2019

Change

LTG Group consolidated income, mln euros

468.2

505.5

-7%

LTG Group net profit, mln euros

36.6

58.1

-37%

LTG group investments, mln euros

228.9

112.6

103%

LTG Cargo income, mln euros

397.5

427.4

-7%

LTG Cargo freight transportation volumes, mln tons

53.4

55.2

-3%

LTG Infra income, mln euros

230.5

235.1

-2%

LTG Infra train workload, bln tons km

32.6

32.5

-0.3%

LTG Link income, mln euros

49.7

61.2

-19%

Number of LTG Link passengers, mln 

3.34

5.52

-40%

 

Updated on 2021-05-25