Ebitda fell 67% year-on-year to Zlotys 130m ($US 34m) and the company recorded a net loss of Zlotys 195m, compared with a profit of Zlotys 153m in the first-half of 2015. First-half results for 2016 take into account the Zlotys 140m acquisition of AWT.
Revenues increased 3% to Zlotys 2.12bn while operating costs climbed 23% to Zlotys 2.32bn.
PKP Cargo says a delay in the start of major infrastructure projects in Poland had a significant impact on aggregate traffic, while the renovation of a blast furnace at the plant of a key customer in southern Poland cut domestic steel production by 11%, with a knock-on impact on rail volumes.
In the Czech Republic, AWT was hit by the insolvency of a major customer, Ostrava-Karvina Mines (OKD), in May. PKP Cargo has decided to make write-offs due to the permanent impairment of AWT Group’s assets, which have had a negative impact on the group’s results.