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State-owned railway firm to pay 100m euro dividend

Finland's state-owned railway firm is to pay a 100 million euro dividend into the public purse after efficiency savings improved its financial results.

State Railways firm VR is to be split into three separate companies. Image: Ismo Pekkarinen / AOP
Yle News

The Finnish state-owned railway company, VR, is to pay 100 million euros to its owners—the Finnish state—as a dividend. The payment was agreed at an extraordinary general meeting of shareholders on Thursday.

The company says that it is able to pay dividends thanks to a programme of efficiency savings, which have improved its profits this year. In March the company had paid a 90 million euro dividend into state coffers.

The company will also pay the balance of a budget allocated for track improvements, amounting to some 49.5 million euros, back to the state.

In August the government announced plans to end VR's monopoly on passenger transport, allowing private providers to enter the market. Under the proposals VR would be split into three separate entities responsible for the railways' property, rolling stock and track maintenance.

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