2008

PERFORMANCE RESULTS OF AS LATVIJAS VALSTS MEŽI in 2007

The shareholder’s meeting has approved the financial statement of AS Latvijas valsts meži for 2007. The company’s yearly turnover reached 162.4 million LVLbringing profit in the amount of 92.7 million LVL. Pursuant to decision of the shareholder’s meeting on the business year 2007, the company will pay out dividends to shareholders in the amount of 28.7 million LVL.

Analysing the results of the last year, Roberts Strīpnieks, Chairman of Board, AS Latvijas valsts meži, admitted that so far it has been the most successful year since the establishment of the company: „All factors tallied to produce a successful accomplishment of all our plans. Due to the reduction of the roundwood flow from the East in 2007, the powerful European „heavyweight” companies started a fierce competition for the resources of Latvia, making prices take an unprecedented leap, while the newly constructed forest roads in turn, helped to retain the supply consistency over the unusually wet winter months. We have also completely fulfilled our forest maintenance program thus promoting a higher wood increment in the future. Altogether, I should evaluate 2007 as an extremely successful year.”

 

In 2007, forest roads have been built anew or reconstructed in the total length of 534 km. Due to that, AS Latvijas valsts meži were capable of ensuring a consistent wood supply to consumers over the warm and wet winter. In future, more and more winters like that are to be expected, therefore the forest road development program continuously acquires a higher strategic importance for the ensuring of competitiveness of the Latvian forest industry.