Freight One profit rises 32% in FY2011

Revenues of Freight One, a largest railway operator in Russia, according to IFRS increased by 13% year-on-year to RUB 117.37 billion, the company’s financial statement said. Operating costs for the period increased by 6.5% to RUB 85.63 billion, of which 39.26 billion rubles accounted for freight traffic. FO’s operating income jumped by 37% year-over-year to RUB 31.74 billion, operating margin was 27%. Net income rose 32% to RUB 26.22 billion. EBITDA soared by 42% compared to 2010’s figures, to 40.9 billion rubles, EBITDA margin was 35%.

JSC Freight One formed in 2007 by state-owned monopoly Russian Railways (RZD) is now a leading provider of rail transportation in Russia. Until recently, RZD was a 100% owner of its rail arm. In November 2011, Russian steel tycoon V. Lisin won the auction (through UCLH) and acquired 75 percent minus two shares of Freight One in a $4.2 bn deal. As a result, Freight One has become part of UCL Rail, a rail division of Universal Cargo Logistics Holding.