April 29, 2016

RZD’s revenues and profit up in 2015

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RUSSIAN Railways (RZD) reported a 10.8% year-on-year increase in revenues to Roubles 1.99 trillion ($US 30.97bn) in 2015 following growth in freight traffic and infrastructure access revenues during the year.

Revenues grew by 7.7% compared with 2014 to Roubles 1.26 trillion. As a result RZD reported Ebitda of Roubles 388bn, a 10.2% increase from the Roubles 353bn reported in 2014, and a net profit of Roubles 8bn, compared with a loss of Roubles 99bn in 2014.

RZD says this positive result is due to improved operational performance and reductions in the negative impact of the group's debt held in foreign currencies following a revaluation of the rouble in the second half of 2015.

However, overall freight volumes fell by 1%, and while there was an increase in overall freight turnover, an increase in the share of low-yield freight had a negative impact on freight revenue. Passenger revenues decreased by 0.5% to Roubles 193bn following reductions in turnover. Logistics performance improved by 38.9% to Roubles 307bn following higher international revenues at Gefco and due to the significant fall in value of the Rouble in 2015.

RZD's operating costs increased by 9.6% year-on-year to Roubles 1.91bn as consumer prices surged by 15.5%, and the price of materials, repairs, and maintenance, as well as staff costs all increased. The railway also invested Roubles 406bn in capital projects during the year, down from Roubles 462bn in 2014.

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