Profit of Russian Railways in the first half increased by 72%

“Russian Railways” (RZD) in the first half of 2016 received 44,85 RUB bn net profit under international financial reporting standards. That is 72% more than in the first half of 2015, follows from the statements of the company.

Profit from exchange rate differences increased by almost two times, to 22.9 billion rubles, the company said the growth of revenues from international markets.

The total revenue of Russian Railways from January to June rose by 8%, to 1.04 trillion rubles. Of these, 648 billion rubles accounted earnings from the provision of access to infrastructure and freight. EBITDA grew by 15% to 220 billion rubles, the EBITDA margin increased to 24.5% compared to 22.4% in the first half of 2015.

Capital investments of the holding in the first half rose 25%, to 198 billion rubles., they are aimed at updating of Park of locomotives, increased bandwidth and security of the railway infrastructure.

In August, Russian Railways and Sberbank signed an agreement about opening of credit line by 50 billion rubles for the period up to the end of 2020.

In the beginning of 2016, came the disposal of the government, which provides for the payment of dividends of companies with state participation of not less than 50% of net profit under RAS or IFRS, depending on where the net profit value more.

RZD for 2015 sent to the dividends of almost 100% of the net profit according to RAS — 302 mln, while the profit of the holding in accordance with IFRS for the year amounted to more than 8 billion rubles.

In August 2015, Russian Railways is headed by Oleg Belozerov, succeeding the company’s President Vladimir Yakunin. Before Belozerov faces the challenge of reducing costs, improving efficiency and reducing dependence on state subsidies, said earlier the General Director of Agency “INFOLine-Analytics” Mikhail Burmistrov. By the end of 2015, Russian Railways received RUB 63 billion in subsidies from the budgets of different levels, the year before the figure was 51 billion rubles.