SNCF says it has done its best to prepare for Britain to leave the EU on October 31 with or without a deal, or cope with a further postponement of Brexit despite the fact that the exit terms and conditions have yet to be defined.
SNCF, which has a 55% stake in Eurostar, has already created a new Eurostar France subsidiary, which has acquired an operating permit and safety certificate, and reached agreements with the authorities on border control measures, cross-border employment of British personnel and agreements on Channel Tunnel access.
“The operational risks still depend on the actual Brexit terms and conditions, particularly the review of the levels of border control for passengers and costs of compliance with the new applicable post-Brexit rules,” SNCF says. “All the necessary measures to avoid a combination of the most unfavourable factors that would likely culminate in a lengthy suspension of activity have been undertaken with the relevant authorities.
“However, in the event of a no-deal Brexit, as the company does not have all the key components to ensure service continuity, and given the exceptional nature of this situation, it is difficult to predict the consequences with sufficient assurance. The most unfavourable scenario could have a material impact on the value of its assets and even its ability to continue its operations without interruption. In the light of the uncertainties surrounding the Brexit process, the Group cannot at this stage estimate the financial impacts and repercussions on its activity.”
First-half performance
SNCF operates passenger rail and freight transport services through its subsidiaries in Britain, comprising Eurostar and Keolis UK. They generated consolidated revenue of €936m for the half-year ending June 30. This included €556m for Eurostar, and €14m from the share of net profit from joint ventures within Keolis.
