The Ukrzaliznytsia public railway company made a net profit of UAH 1.238 billion based on the Ukrainian Accounting Standards in the period of January-September 2016. This is stated in the financial report that the company filed in the information disclosure system of the National Commission on Securities and Stock Market, the Interfax Ukraine news agency reports.
Comparative figures for the same period of last year were not provided in the report because the company only began operations on 1 December 2015.
The company’s net revenue in this period amounted to UAH 48.889 billion and its cost of goods sold was UAH 44.481 billion.
In addition, the company reported UAH 2.578 billion in other operating income and UAH 6.408 billion in other operating costs. Administrative costs and sales costs amounted to UAH 486.4 million. Its other incomes and financial costs were also significant at UAH 5.255 billion and UAH 3.697 billion, respectively.
As reported, Ukrzaliznytsia reported a net loss of UAH 16.78 billion for 2015 (based on the International Financial Reporting Standards), which which is 8.7% more than the figure for 2014. Ukrzaliznytsia attributed this loss to an exchange-rate difference of UAH 13.91 billion caused by the devaluation of the hryvnia national currency. Its sales revenue increased by 21.6% to UAH 60.13 billion in 2015.
Ukrzaliznytsia’s financial plan for 2016 provides for a net profit of UAH 96.8 million on a revenue of UAH 78.4 billion. Its net revenue is projected at UAH 74.7 billion, including UAH 66.59 billion from transportation of goods and passengers and UAH 7.83 billion from auxiliary services. The financial plan for 2016 did not clarify the accounting standards used.
In October 2016, Ukrzaliznytsia’s head Wojciech Balczun released data indicating that the company expected net losses of UAH 990 million in the period of July-September 2016 and UAH 4.136 billion in the entire 2016.
Ukrzaliznytsia accounts for 82% of the total volume of freight and around 50% of the total number of passengers transported via all modes of transport in Ukraine. Ukrainian railways handle the fourth highest volume of freight transportation in the Eurasian region, behind China, Russia, and India.
