19
Road traffic sub-sector. Roads
SJSC Latvijas Valsts ceļi
SJSC Latvijas autoceļu uzturētājs SJSC Latvijas autoceļu uzturētājs (hereinaf ter LAU) is dealing, throughout the country, with the maintenance, construction and repair of national and local government roads and engineering constructions and communications associated with them, as well as the production of construction materials: dolomite chips, crushed gravel and prepared sand. A Delegation Agreement with the Ministry of Transport has been entered into on 18 December 2013, which provides that as of 1 January 2014 the Ministry of Transport shall delegate to LAU a public administration task – the planning and perf ormance of integrated daily maintenance works on national roads. The agreement has been entered into f or the next seven years, until 31 December 2020. The daily national road maintenance services are funded from the principal national budget programme 23.00.00 “National Road Fund” sub-programme 23.06.00 “Management, maintenance and renewal of national roads”, according to the amount of funds granted for the current year. During the report period, the structure of revenue f rom economic activity is as f ollows: 82% is revenue f rom the perf ormance of public administration tasks delegated by the MoT and 18% is revenue f rom other economic activities, i.e. revenue f rom works on local government roads, f rom main street maintenance works, f rom other road works and f rom products – sale of construction materials, etc. In 2014, the company was operating according to the standards of the international quality management system ISO 9001: 2008 and the work safety and occupational health system OHAS 18001 : 2007. Table 15. Financial indicators of LAU Main financial indicators, EUR ‘000 Overall indicators of the SOE
2013
2014
Turnover
66 512.6
63 843.3
Profit/loss
1 195.7
1 540.2
EBITDA
8 097.4
8 409.5
EBIT
2 019.8
2 266.2
Total assets
65 786.1
62 967.4
Share capital
35 186.3
35 186.3
Equity
40 380.7
41 105.6
Factors
Profit and turnover ratio,%
1.8 %
2.4 %
EBITDA and turnover ratio,%
12.2 %
13.2 %
Return on assets; ROA,%
1.8 %
2.4 %
Return on equity; ROE,%
3.0 %
3.7 %
Total liquidity indicator
1.0
1.2
Liabilities to equity ratio
0.6
0.5
1 438
1 368
14.1
15.3
6 125.1
2 349.8
2 394.6
0.0
0,0
62 690,6
Other indicators Number of employees on average per annum Gross remuneration average per employee Investment in fixed assets
Dividends paid into the national budget from the profit of the previous year Funding directly or indirectly received from the national budget
State Joint Stock Company Latvijas Valsts ceļi (hereinaf ter LVC) is perf orming the administration of national roads, administration of f unding f or the national road network and accounting, management and control of perf ormance of the programme of the national road daily maintenance works, monitoring of organisation of traffic, organising public procurement, management of the national road construction programme, management of projects co-funded by the European Union Cohesion Fund and the Regional Development Fund and construction supervision as well as monitoring of the construction, reconstruction, daily maintenance and periodic maintenance of local government roads. The total length of roads and streets in the country is 73,592 km. The average density of the road network is 1.139 km per 1km2 (data as to 31.12.2014). The total length of national roads supervised by LVC is 20,131 km. The average density of the national road network is 0.312 km per 1 km2. 26%, or 2,273 km of roads with black cover should be classified as being in poor condition and they require complete reconstruction of the surface (in 2013 – 28%, or 2,448 km). Table 16. Financial indicators of LVC Main financial indicators, EUR ‘000 Overall indicators of the SOE Turnover
2013
2014
10 979.8
12 132.2
Profit/loss
7.7
43.6
EBITDA
654.6
698.9
EBIT
43.6
101.7
Total assets
5 263.1
5 569.7
Share capital
4 155.6
4 155.6
Equity
4 219.6
4 256.0
Factors
Profit and turnover ratio,%
0.1 %
0.4 %
EBITDA and turnover ratio,%
6.0 %
5.8 %
Return on assets; ROA,%
0.1 %
0.8 %
Return on equity; ROE,%
0.2 %
1.0 %
Total liquidity indicator
2.0
1.7
Liabilities to equity ratio
0.2
0.2
320
334
24.8
26.4
899.0
797.8
46.6
6.9
13 288.5
14 524.8
Other indicators Number of employees on average per annum Gross remuneration average per employee Investment in fixed assets
Dividends paid into the national budget from the profit of the previous year Funding directly or indirectly received from the national budget
57% of national roads are with gravel cover. On the background of paved roads, the condition of gravel roads during the last decade has not been considered to be very critical. However, in recent years, with increasing amounts of logging activities in the country and upon the renewal of passenger transportation by bus, the deferred periodic works for the gravel cover maintenance start causing ever increasing problems for motorists. 41% of roads with gravel cover should be classified as being in poor condition and they require a complete reconstruction of the cover (in 2013 – 42%)