August 11, 2014

NTV plans debt restructuring after €77m loss

Written by  Marco Chiandoni
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NTV plans debt restructuring after €77m loss NTV

THE steering committee of NTV approved the company's 2013 financial results at the end of July, showing the Italian open-access high-speed operator made a loss of €77m during its first full year of operation.

Net debts reached €666m at the end of the year, compared with €592m at the end of 2012, although revenues climbed from €103m to €239m as passenger numbers on Italo services increased to nearly 6.2 million.

NTV president Mr Antonello Perricone has expressed concern over uncertainty regarding access charges for high-speed lines and changes in the charging structure for traction energy, which could lead to higher costs for open-access operators.

Italy's energy authority has decreed that infrastructure manager Italian Railway Network (RFI) is no longer a high-demand consumer, which means its energy bill could rise by around €25m. Furthermore, the Italian government is also cutting its €120m annual contribution to the railway's energy costs, which will mean increased rates for all train operators.

NTV has appointed financial advisors Lazard to draw up a restructuring plan for its debts, which are due to mature between 2020 and 2025.

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