Exchange-rate differences affected the financial result of the Ukrzaliznytsia Public Railway Company (PJSC Ukrzaliznytsia) in the first quarter of 2016, as a result of which the company made a loss if UAH 2 billion during the quarter. The company’s first quarterly report was released by its press office.

The company’s losses from currency exchange-rate fluctuations amounted to UAH 3.1 billion and its losses from other financial activities (payment of interest on loans) amounted to UAH 1.1 billion, bringing its total losses to UAH 4.2 billion. However, the company made a profit of UAH 2 billion from other activities, thus reducing its total net losses from other activities to UAH 2.2 billion. The company also made a profit of UAH 156.6 million from cargo and passenger transportation, as a result of which its final net losses in the first quarter amounted to UAH 2 billion.

"This figure does not affect the ability of the company to perform its business activities and it is due to the existence of contractual obligations in foreign currency and the rise of the dollar," the press release states.

In addition, according to the press release, Ukrzaliznytsia completed the re-profiling of the bonds that Shortline Plc issued for USD 500 million at the yield rate of 9.5%, which will mature in 2018, in the first quarter. Under a new agreement with this company, the yield rate of the bonds was increased to 9.875% and their maturity postponed to 2021. The new agreement entered into force on 14 March 2016. The yield rate and the commission were announced on 21 March in accordance with the terms of the re-profiling.

As reported earlier, PJSC Ukrzaliznytsia was registered on 21 October 2015 and it began commercial operation on 1 December 2015.