Russian Railways announces net profits for first half of 2016

Russian Railways has published its consolidated financial statements and its subsidiaries prepared in accordance with International Financial Reporting Standards
Russian Railways announces net profits for first half of 2016
30 August 14:31 2016 Print This Article

In the first part of 2016, the state owned Russian Railways (RZD) increased its net profits by 1.7 times to 45 billion rubles, the company’s financial statements published on Tuesday read.

The EBITDA increased by 15% to 220 billion rubles; while the EBITDA margin grew to 24.5% from 22.4% last yera “due to operating costs optimization aimed at improving efficiency of the Company’s operations.”

The Group’s total revenues for the first six months of 2016 increased by 8.1% and amounted to 1.040 billion rubles (962 billion rubles for the same period year 2015).

Cargo and infrastructure access revenues grew by 3.6 % up to 648 billion rubles mainly driven by the increase of cargo turnover by 1.2 % and average yield rate growth. Passenger revenues increased by 10.0% up to 92 billion rubles due to the volume gain of passenger traffic and tariff indexation in regulated segment of passenger turnover. Revenues in logistic segment increased by 28.4% up to 190 billion rubles due to higher revenues of GEFCO international sales and due to ruble devaluation comparing to the same period in 2015.

The Net Debt to EBITDA ratio was at 2.08x as of 30 June 2016 compared to the corresponding figure of 2.32x as of 31 December 2015.

The Group’s capital investments over the first six months 2016 totaled to 198 billion rubles comparing to 158 billion rubles over the same period in 2015.

In early 2016, the Russian Government issued a decree that raises minimum dividends paid by state-owned companies to 50% of net profit under RAS or IFRS (depending on where the net profits are higher).

For 2015, the RZD has directed on dividends 302 million rubles, while according to IFRS the company’s net profit reached over 8 billion rubles.

In front of the President of Russian Railways Oleg Belozerov, the head of the company in August 2015, the challenge is to reduce costs, improve efficiency and reduce dependence on state subsidies, previously told RBC General Director of Agency “INFOLine-Analytics” Mikhail Burmistrov. By the end of 2015, Russian Railways received RUB 63 billion in subsidies from the budgets of different levels, the year before the figure was 51 billion rubles.

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