FO company sees net income growth this year to RUB 18bn

Net income (to Russian Accounting Standards) of JSC Freight One (PGK, a subsidiary of JSC RZD) is expected to grow by this year-end by 1.8 times year-over-year to 18 billion rubles. Such a forecast was made by a FO’s Deputy CEO Vladimir Sosipatorov at the inter-regional roundtable "Ensuring sustainable rail freight in the Northwest region in the context of RZD’s reforms”, the PortNews correspondent reported.

The company expects this year-end a 27-percent gain in revenues to 90,91 billion rubles, EBITDA - by 14.6% to 20,288 billion rubles. EBITDA margin - to decline by 2% to 23%.

Net income will be channeled for renovation and procurement of rolling stock.

The Freight One (JSC ‘Freight One’) was formed in July, 2007 by Russian Railways (JSC RZD), the country’s railroad monopoly. FO is now the largest Russian rail operator. RZD holds a 100-percent stake (100% - 1 or ordinary stock) in Freight One. The non-commercial organization Baminvest as a co-founder owns one ordinary share in the company.

 

In Nov, 2007 the company began to manage independently the carriage stock. Currently, Freight One owns over 200,000 units of rolling stock of different types, 21% of the total fleet in Russia (77,000 tanks, 55,000 gondolas, 14,000 platforms, 14,000 box cars and about 45,000 other cars).
In 2009, the FO shipped 231.8 million tons of freight. The company projected for this year to carry 300 million tons of cargo.