2013

LVM achieves LVL 38.5 million in profit in 2012

The shareholders of JSC “Latvia’s State Forests” (LVM) have approved the company’s financial report for 2012. LVM turned over LVL 178.1 million in 2012. The company’s profit amounted to LVL 38.5 million. LVM shareholders have also decided that the company will pay the state LVL 34.7 million in dividends.

The company’s total income exceeded the projected amount by LVL 8.85 million last year, despite a 12 percent decrease in timber sales. Due to LVM efficiency improvement measures and timber logistics development projects, timber transport distances and costs reduced in 2012 and the company’s operational costs shrank by more than LVL 6.6 million.

Damage caused by heavy snow in December that, according to senior foresters, was the most devastating in the past 50 years, posed the greatest challenge for LVM in 2012. After surveying the stricken areas, it was established that 200,000 cubic metres of wood was damaged. In order to prevent threat to growing forests and their health, as well as to reduce the damage, the company began cleaning up these areas immediately.

LVM regenerated 11,400 hectares of forests in 2012, mostly consisting of tree species mentioned in the company’s strategic forest management plan – pine trees, fir trees and birches. Young forest stands were tended in an area of 33,900 hectares. 512 kilometres of forest roads were accepted into operation during the reporting period, including 267 kilometres of reconstructed forest roads and 244 kilometres of new forest roads. LVL 31.4 million was invested in the construction of these roads, which will ensure quality forest management and efficient customer service in the years to come.

To expand timber production forests, LVM purchased 1,454 hectares of land from various owners, investing LVL 1.42 million. During the next few years, these forests will be tended and, where needed, more productive forests will be planted to increase timber production.

LVM manages 1.62 million hectares of land, including 1.59 million hectares of forests. According to the company’s strategy, 0.32 million hectares or 20 percent of the company’s land is managed as conservation areas. Since the company’s establishment, LVM has paid the state LVL 441.6 million in various taxes and dividends.

Information prepared by:

Tomass Kotovičs
JSC “Latvia’s State Forests”
Communications Department Head, phone: 67805432