OPERATIONAL HIGHLIGHTS
Globaltrans significantly outperformed the market demonstrating a 4% decrease in Freight Rail Turnover over 1H 2008 to 31.2* billion tonnes-km in 1H 2009 compared to a c. 21% decrease reported for the overall Russian freight rail market(1) over the same period.
Strong relationships with key clients, premium quality service and the large share of its universal (gondola) fleet allowed Globaltrans to maintain volumes by switching between cargoes on the back of a depressed market environment. Globaltrans’ market share in ferrous metals and coal within the overall volume(1) of Russian freight rail transportation increased from c. 11% to c. 16% and from c. 1% to c. 2% respectively in 1H 2009 compared to the same period of the previous year.
Pricing of operator services remained relatively flat in RUR terms with Average Price per Trip increasing by 1% in RUR terms(2) while decreasing by 27% in USD terms over 1H 2008 to USD 590.2*. The decrease in USD terms is attributable to significant depreciation of the Russian Ruble against the US Dollar for the period.
Operational efficiency was affected by the economic downturn resulting in the Total Empty Run Ratio increasing from 36%* to 63%* driven by an increase in the Empty Run Ratio for gondola (open top) cars to 54%*. Empty Run Costs increased by 16% in USD terms in 1H 2009 (and by 62% in RUR terms(2)) over 1H 2008 to USD 45.6* million in 1H 2009.
FINANCIAL HIGHLIGHTS
As the majority of the revenue and costs of Globaltrans are denominated in Russian Rubles, the financial performance of 1H 2009 reported in USD terms was significantly affected by a 39% depreciation of the average exchange rate of the Russian Ruble against the US Dollar for the period(3).
Net Revenue from Operation of Rolling Stock was down by 5% in RUR terms(2) and by 32% in USD terms to USD 149.2* million compared to 1H 2008.
Supported by recent acquisitions, the leasing business performed well with revenue from operating leasing up 2% in USD terms to USD 31.0 million in 1H 2009.
Adjusted Revenue decreased by 28% to USD 180.2* million in 1H 2009 compared to 1H 2008.
Total cost of sales, selling and marketing costs and administrative expenses decreased by 31% to USD 162.0 million in 1H 2009 compared to 1H 2008.
Adjusted EBITDA was down by 42% to USD 74.6* million in 1H 2009 compared to 1H 2008.
Net Debt to LTM Adjusted EBITDA was maintained at 1.7x* as of 30 June 2009, while the share of borrowings denominated in Russian Rubles increased from 13%* to 24%*.
Globaltrans Investment PLC together with its subsidiaries (“Globaltrans” or the “Group”) is the largest private freight rail operator in Russia by the size of owned rolling stock fleet (based on publicly available information) and the first and only to have international listing.
Globaltrans Investment PLC is incorporated in Cyprus and operates through its subsidiaries in Russia, Ukraine and Estonia. The Group provides freight rail transportation, railcar leasing, and associated services to large industrial and medium sized corporate customers. It carries customers’ cargoes to more than 25,000 destinations in Russia and Ukraine. Globaltrans’ rolling stock fleet is one of the most modern in Russia with 26,967 railcars of average age of 4.1 years as of the end of 2008.
In 2008 the Group’s freight rail turnover totaled 61.7 billion tonnes-km with 33.3 million tonnes of freight transported. In 2008 Globaltrans recorded revenue of USD 660.9 million with adjusted EBITDA amounting to USD 250.3 million.
Globaltrans’ global depositary receipts are listed on the Main Market of the London Stock Exchange under the ticker GLTR since May 2008.