OJSC Russian Railways publishes consolidated IFRS financial statements for 1H 2021
The consolidated financial statements of the Russian Railways’ Holding according to International Financial Reporting Standards (IFRS) as of 30 June 2021 take into account the results of 189 subsidiaries.
The total revenues of the Russian Railways’ Holding in the first half of 2021 amounted to RUB 1,240.3 billion, 14.3% more than the RUB 1,085.2 billion recorded for the first half of 2020. The improved performance was due to the economy’s recovery following the crisis which resulted from the coronavirus (COVID-19) pandemic in 2020.
Revenues from freight transportation and the provision of access to infrastructure increased by 7.8% to 813.6 billion roubles, up from 754.6 billion roubles in the first half of 2020, following a 4.6% increase in freight turnover and an increase in the revenue rate of 3.9%.
Revenues from the provision of logistics services increased by 46.7% to 219.7 billion roubles, up from 149.7 billion roubles in the first half of 2020 on the back of increased euro revenues at the GEFCO group of 25.6% to 2,179 million euros, up from 1,735 million euros for the first half of 2020, and the strengthening of the rouble exchange rate against key foreign currencies compared to the first half of 2020.
Revenues from passenger traffic increased by 43.6% to 97.7 billion roubles, up from 68.1 billion roubles in the first half of 2020, as passenger numbers recovered, increasing in the first half of the year by 36.2% compared to the same period in 2020.
Operating expenses of the Russian Railways’ Holding increased by 9.7% to RUB 1,200.9 billion, which is significantly lower than the Holding’s revenue growth rate. The key factor behind the increase in costs was the rising costs of third-party organisations related to integrated logistics services, which are fully covered by revenues.
EBITDA for the first half of 2021 amounted to 252.8 billion roubles, 30.1% more than the same indicator in the first half of 2020, which stood at 194.2 billion roubles.
The rise in revenues outstripped that in operating expenses of the Russian Railways’ Holding, thus increasing the EBITDA margin in the first half of 2021 to 23.3%, up from 19.8% in the first half of 2020.
In the first half of 2021, the Company continued to fulfill its social obligations with regard to ensuring the provision of passenger services and maintaining a stable situation in related industries.
The net profit of the Russian Railways’ Holding amounted to 15.2 billion roubles, a improvement compared to the loss of 46.6 billion roubles recorded in the first half of 2020.
Net debt increased to RUB 1,756.9 billion from RUB 1,609.9 billion as of 31 December 2020. Net debt/EBITDA was down to 3.67x compared to 3.83x at the end of 2020. The decrease in the debt burden is associated with the improved financial results for the period. Moreover, the calculation is based on the EBITDA indicator for the previous 12 months, which takes into account the results of the Russian Railways’ Holding’s operations in the second half of 2020 during the pandemic.
Russian Railways was established on 1 October 2003 in accordance with Resolution No. 585 passed by the Government of the Russian Federation on 18 September 2003.
The Russian Federation owns 100% of the Company’s shares.