Net profit of Russian Railways to make 10.1 billion rubles in 2007

Net profit of Russian Railways will amount to 10.1 billion rubles in 2007, a source from the Transport Ministry of RF reported according to RBC. According to the source, net profit of the company in 2008 is to total 24.2 billion rubles, in 2009 – 40.8 billion rubles. The source underlines that the company’s income growth rates will exceed costs and make 13.3% in 2007, 9.6% in 2008г and 8.7% in 2009. It is believed that 82% of total investments are to be used for infrastructure development, 16% - for renewal of the rolling stock and 2% - for healthcare, education and residential construction project. In 2005 the company’s net profit under Russian Accounting Standards totaled 9 billion 751 million 20 thou rubles (+11.4% against year-on-year result). The company’s revenue amounted over the reported period to 748 billion 680 million 783 thou rubles (+13.5%), pre-tax profit - 31 billion 363 million 835 thou rubles (+18.2%), sales profit - 64 billion 421 million 593 thou rubles (+17.8%), gross profit - 67 billion 396 million 512 thou rubles (+17.8%). Net profit of RZD OJSC in 2006 is to be similar to that of 2005 – 9.8 billion rubles.