Lithuanian State Companies More Than Triple First-Half Profit

Lithuanian state-owned companies more than tripled their first-half profit this year as the government seeks higher revenue from them to help finance the budget.

Net income rose to 249 million litai ($101 million), from with 76.1 million litai in the first half through June 2010, the Vilnius, Lithuania-based Economy Ministry said in a report today.

The government, which values the assets mainly in the energy, transport and forestry industries at 20.3 billion litai, wants to increase efficiency in the companies to boost contributions to the budget. The government expects to receive 540 million litai in dividends from state-owned enterprises next year from 2011 profit to help cut the deficit to 2.8 percent of gross domestic product.

Return on equity rose to 1.6 percent in the first half from 0.7 percent in the first six months of 2010, according to the report.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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