Russian Railways announces 6 months 2016 results according to IFRS
Total revenues of Russian Railways and its subsidiaries for the first six months of 2016 increased by 8.1% and amounted to 1 040 billion rubles (962 billion rubles for the same period year 2015), says press center of Russian Railways.
Cargo and infrastructure access revenues grew by 3.6 % up to 648 billion rubles mainly driven by the increase of cargo turnover by 1.2 % and average yield rate growth. An average revenue rate was supported by freight tariff indexation, but at the same time held back by increasing share of low-yield cargos in the total turnover and higher volumes on less profitable transportation routes. Passenger revenues increased by 10.0% up to 92 billion rubles due to the volume gain of passenger traffic and tariff indexation in regulated segment of passenger turnover. Revenues in logistic segment increased by 28.4% up to 190 billion rubles due to higher revenues of GEFCO international sales and due to ruble devaluation comparing to the same period in 2015. A share of logistics’ revenues amounted to 18.3% of the consolidated sales comparing to 15.3% a year ago.
The Group’s operating costs increased by 6,3% over the reporting period up to 980 billion rubles mostly due to the growth in purchased freight forwarding and logistics services from subcontractors attributable to significant growth of logistics operations on international markets, which are fully compensated by revenues in logistics segment. Labor and social costs remained at the last year’s level due to optimization measures applied during the first half of 2016.
The Group’s EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 15.0% compared to the same period last year to 220 billion rubles (191 billion rubles in the first half 2015). EBITDA margin grew up to 24.5% from 22.4% a year ago due to revenue growth and operating costs optimization aimed at improving efficiency of the Company’s operations.
The Group’s net profit amounted to 45 billion rubles over the reporting period compared to 26 billion rubles a year ago, determined by stronger operational performance and an improved result of other income and expenses.
The Net Debt to EBITDA ratio was at 2.08x as of 30 June 2016 compared to the corresponding figure of 2.32x as of 31 December 2015. Lower level of this ratio is explained by higher EBITDA during the last 12 months and reduction of the total debt in ruble equivalent due to the national currency strengthening over the first six month 2016. EBITDA to Net Interest Expenses ratio (including capitalized interest expenses) amounted to 5.07x over the reporting period.
The Group’s capital investments over the first six months 2016 totaled to 198 billion rubles comparing to 158 billion rubles over the same period in 2015. RZD continues implementing its investment projects focused on renewal of locomotives, ensuring necessary capacity on key routes as well as safety of rail infrastructure including fulfillment of infrastructure projects under the state transportation development programs.
JSCo Russian Railways was created on October 1st, 2003 pursuant to Decree of the Russian Government № 585 "On foundation of Open joint Stock Company "Russian railways" dated 18 September 2003. TheCompanyis 100% owned by the Russian Government.
